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Reality TV is Not Reality: Some Advice on Texas Fix and Flip Loans
Nielsen ratings rank HGTV as the second most watched cable network on TV. These well-produced shows might make flipping look like a path to easy profits. But, take out Texas Fix and Flip Loans with reality TV in mind and your first flip will likely be a flop.
Producers on these shows know that the majority of their audience only cares about design and decoration, but flipping is about investing and not designing. If you want to get into the flipping business, you can't ignore these facts:
• It takes time to find the right deal.
• Financing is limited and carefully structured.
• If a house doesn’t sell in time, it could be a disaster.
HGTV programs devote about three minutes to finding a property to flip and the conversation usually goes as follows:
"Hey, babe. Found a great place, in that neighborhood."
Usually his better half is in some distant office, with a laptop in front of her. She gives a cursory glance to some comps. “Well that's great! We could make this much," she says off-hand.
Then they close, while counting out the cost of repairs on fewer than five fingers. Their biggest obstacle seems to be choosing that perfect white subway tile for the kitchen.
Texas ... more

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