Turn on any semi-successful cable or satellite television provider and you will find a buffet of real estate 'Flip This and That' programs opening a window into what might appear on the surface to be a legitimate 'get rich quick' scheme.
The most famous Flipper of them all probably had no aspirations to find the holy grail in a run-down house.
I'll admit to watching more then my share of "Flip" TV. Typically I end up screaming obscenities within the first 15 minutes of any show due to the numerous ethic's violations and general stupidity exhibited by the experienced "Flippers". In this market, especially in Phoenix, the interest in 'flipping' had decreased proportionate to the declining housing market.
Which makes me wonder just how much longer these shows will stay on TV. "Flipping" is not inherently bad. The problem lies in those who flip and their level of inexperience along with visions of wealth dancing in their heads. This combination tends to lead to cost over-runs, bad product selection, and general repair sloppiness.
A few of the featured TV Flippers have landed in hot water as of late. The Atlanta version of "Flip This House" focused on Sam Leccima has been accused of fraud and faking the actual renovations done on the show.
Also featured during the same season was Armando Montelongo a man who so deeply repulsed me I frequently had to turn the show off in order to reduce my blood pressure. One of the biggest questions concerning Montelongo is the actual purchase and selling prices of the homes featured on the program. The blog FlipThisLawsuit.com does a great job digging into the property histories and the history of Montelongo himself.
Not completely a flipper but still suffering is David Crisp. Crisp, once acclaimed by the National Association of REALTORS as one of the Top 30 REALTORS under 30 Years of Age now finds himself in quite a pickle. The former waiter actually leased BMW's and jets at the height of his success. Now he is facing foreclosure on 8 family properties and is being investigated by the California Department of Real Estate.
These are only three of the hundreds across the country who find themselves underwater with the housing slump. Of course, slump or not, many flippers would have eventually been stopped.
Flipping can be an honest and profitable business. It needs to be done right and done honestly and really should be referred to as 'Property Renovation'. You don't need a guru to tell you how to make money in real estate. There is no 'get rich quick' solution. It requires hard work, a good team of people, and a whole lot of elbow grease.
I totally disagree with you. No one has proven anything about Armando. He is an ispriation to those of us who want more from life unlike you
Posted by: Fred Flip | July 11, 2007 at 07:14 PM
I find real estate investment a great idea. While I hate the term 'flipping' I do truly believe it is a great way to improve a property, a neighborhood, and even a life.
Many 'flippers' are very successful and very honest. The biggest issue I have lies with those who mislead aspiring 'flippers' as to the ease and speed with which a 'flip' can be undertaken.
Posted by: Tracy Thompson | July 13, 2007 at 09:46 PM