How accurate are TV shows about house flipping?
How accurate are TV shows about house flipping? - Question on Quora.com
House Flipping TV Shows are very deceptive and convince the average person they can flip a house in a few weeks and make a small fortune without lifting a finger.
My biggest gripe with the house flipping TV shows is they fake the numbers and don’t tell you all of the Other Costs it takes to to flip a house. The TV shows only show the Resale Value & then deduct the Purchase & Repair costs…but they don’t show all of the other hidden costs it takes to flip a house, such as the Buying Costs, Holding Costs, Financing Costs, or Selling Costs.
Bogus Math & Fake Profit Numbers
Here's some of the bogus math and fake profit numbers I typically see on the house flipping TV shows, which ignores all of the hidden costs:
Profit = $300,000 Resale - $200,000 Purchase - $50,000 Repairs
Fake Profit = $50,000
Real Profit Numbers
In reality if the TV shows included all of the hidden costs to account for the buying costs, holding costs, selling costs & financing costs, there would be a very slim profit margin left in the deal.
Profit = $300,000 Resale - $200,000 Purchase - $50,000 Repairs - $3,000 Buying - $6,000 Holding - $24,000 Selling - $12,000 Financing
REAL PROFIT = $5,000