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IS RISKY BUSINESS.
(Christina) AAH!
I'M TAREK, AND THIS IS MY WIFE, CHRISTINA.
WE'RE REAL-ESTATE AGENTS.
EVER SINCE THE MARKET CRASHED, IT'S BEEN A ROCKY ROAD.
WITH A FAMILY TO SUPPORT, WE'RE STARTING A NEW BUSINESS,
AND WE'RE FLIPPING FORECLOSURES.
WE BUY HOUSES FOR CASH, SOMETIMES SIGHT UNSEEN.
$415,000.
(Weiler) $415,000. KNOCK THEM OUT AND I'LL GO $420,000.
AND SOLD YOUR WAY. GOOD LUCK.
SOME OF THE HOUSES WE BUY ARE EASY FIXES...
(Messina) TURN AND BURN.
PRICE IT LOW AND SELL IT QUICK.
...BUT OTHERS ARE TOTAL TEARDOWNS.
AND YOU NEVER KNOW WHAT YOU'VE BOUGHT
UNTIL YOU WALK THROUGH THAT DOOR.
OOH!
-- Captions by VITAC --
Closed Captions provided by Scripps Networks, LLC.
(Tarek) HERE'S A LISTING FOR THAT SHORT SALE
THAT WE SAW THAT'S GOING TO AUCTION TODAY.
CHECK IT OUT.
(Tarek) WE HAVE HUNDREDS OF THOUSANDS OF DOLLARS
IN CASHIER'S CHECKS ON US,
AND WE'RE HEADING TO A FORECLOSURE AUCTION
TO BID ON A SWEET PROPERTY.
WE SAW IT ABOUT A MONTH AGO
WHEN IT WAS STILL LISTED AS A SHORT SALE.
IT DIDN'T SELL, AND NOW IT'S UP AT A FORECLOSURE AUCTION.
I LOVE THE NEIGHBORHOOD.
(Christina) ALL THE HOUSES LOOK NICE.
NICE PAINT. GOOD LANDSCAPING.
IT'S A THREE-BEDROOM, 2 1/2-BATH,
LITTLE OVER 2,000 SQUARE FEET.
HOMES HAVE TO BE WELL ABOVE $500,000, RIGHT?
OH, YEAH. I RAN THEM EARLIER.
THEY'RE $500,000, $510,000.
WE CAN PROBABLY EVEN GET $515,000 FOR THIS PLACE.
THIS COULD BE A GREAT BUY.
I LOVE THE AREA.
MAX BID, WHAT DO YOU THINK?
$415,000, $420,000?
AND IF WE DO GET IT FOR $415,000,
OH, MY GOD, WE COULD MAKE A KILLING.
IF WE GET THIS HOUSE FOR $415,000
AND IF THE HOUSE DOESN'T NEED MUCH WORK,
WE CAN MAKE OVER $50,000.
WHERE?
MAKE A LEFT COMING UP.
NICE TURNKEY PROPERTIES LIKE THIS ONE
DON'T COME UP OFTEN IN FORECLOSURE AUCTION.
WE'RE GONNA HAVE TO BE AGGRESSIVE AND SMART
ABOUT THIS BUY.
HI. HOW YOU DOING, FOLKS?
GOOD, GOOD.
TO ENTER THE BIDDING,
WE HAVE TO HAND OVER A DEPOSIT FOR 10 GRAND.
AND IF WE WIN THE BID
AND WE DON'T HAVE THE MONEY TO PAY FOR THE HOUSE ON THE SPOT,
WE LOSE OUR DEPOSIT.
YOU'VE GIVEN US A $10,000 CASHIER'S CHECK
FOR THE BIDDER'S PANEL.
ALL SALES ARE FINAL.
THE PROPERTY GOING TO SALE IS ITEM NUMBER 235,
LOCATED IN ANAHEIM, CALIFORNIA.
THE OPENING BID IS $380,000.
WE'LL BE STARTING WITH $2,000 INCREMENTS.
DO I HAVE ANY $380,000 STARTING BID?
$382,000. THANK YOU, SIR.
NOW BID $384,000.
$384,000 IS BID.
HOW ABOUT $386,000? I GOT $384,000 NOW.
BID $386,000 IN THE BACK. THANK YOU, MA'AM.
NOW GO $388,000.
(Tarek) IT'S NERVE-WRACKING TO BE STANDING HERE
WITH HUNDREDS OF THOUSANDS OF DOLLARS IN OUR POCKET.
LOOKING AROUND AT THE CROWD, THERE'S PROBABLY $8 MILLION
IN CASHIER'S CHECKS ON THIS CORNER.
$388,000 IS BID.
NOW GO $390,000. $390,000 IN THE BACK IS BID.
$394,000.
$394,000 IS BID.
$396,000.
$396,000 IS BID. NOW GO $398,000.
THANK YOU, SIR.
$398,000 IS BID. NOW GO $400,000.
$398,000 IS BID. NOW GO $400,000.
SAY $400,000. GO $400,000.
I GOT $398,000. $400,000 IN THE BACK.
LET'S GO $5,000 INCREMENTS.
(Christina) THERE'S SOME SERIOUS COMPETITION HERE.
I'M WILLING TO GO AS HIGH AS IT TAKES TO GET THIS HOUSE
BECAUSE THIS HOUSE IS IN A GREAT AREA.
$400,000 WAY IN THE BACK IS BID. NOW GO $405,000.
$405,000.
$405,000. THANK YOU, SIR. NOW GO $410,000.
$415,000.
(Tarek) THIS GUY ON THE PHONE
IS WHAT'S KNOWN AS A PROXY BIDDER.
HE'S PROBABLY WORKING
FOR A HUGE REAL-ESTATE INVESTMENT FIRM
THAT HAS ACCESS TO MAJOR CASH.
OUR POCKETS AREN'T NEARLY AS DEEP AS THESE GUYS.
(Weiler) $415,000 BID.
NOW GO $420,000. SAY $420,000.
$420,000 IS BID.
SURE?
$425,000.
$425,000.
$430,000.
$425,000 IN BID.
$430,000.
$430,000. THANK YOU, SIR.
NOW GO $435,000.
I GOT $430,000. ANY ADVANCES?
ONCE, TWICE. ANY MORE?
AND SOLD YOUR WAY.
THANK YOU, FOLKS.
GOOD LUCK.
(Christina) THANK YOU.
EVEN THOUGH WE PAID MORE THAN WE PLANNED, WE'RE STILL EXCITED.
IF THE HOUSE DOESN'T NEED MUCH WORK,
WE CAN STILL MAKE A GOOD PROFIT.
ALL RIGHT. I'M GONNA CALL DAN.
(telephone ringing)
(Tarek) ARE YOU ABLE TO MEET ME IN LIKE 20, 30 MINUTES?
(Messina) Absolutely.
Shoot me over the address and I'll meet you over there.
HERE IT IS.
GATE'S OPEN.
EXCITING MOMENT. DOOR'S OPEN.
INTERESTING.
HELLO?
HEY, LOOK, THIS IS TOTALLY BUSTED.
OH, MY GOD. IT SMELLS SO BAD.
WHAT IS THAT?
OH, MY GOD. WHAT IS THAT SMELL?
OOH!
HOLY CRAP.
YOU'VE GOT TO BE KIDDING ME.
OH, MY GOD.
EVERY WINDOW'S BROKEN.
RUINED THE CARPET, CUT THE BLINDS, HAMMERED THE FLOOR.
THE HOUSE IS RUINED.
WHAT IS WRONG WITH PEOPLE
THAT WOULD ACTUALLY DO THIS TO SOMEBODY ELSE?
(Tarek) I HAVE NO IDEA HOW LONG IT'S GONNA TAKE
AND HOW MUCH IT'S GONNA COST TO FIX THIS DAMAGE.
OH, MY GOD.
IT SMELLS DISGUSTING IN HERE.
I CAN'T EVEN DESCRIBE THE RANCID ODOR IN HERE.
OH, MY GOD.
THE WHOLE KITCHEN'S COVERED WITH GLASS.
(Messina) WELL, GUYS...
HA, THIS IS A NICE ONE.
WHAT HAPPENED HERE?
THEY BROKE EVERY SINGLE WINDOW IN THE HOUSE.
THE SLICED ALL THE CURTAINS.
HOW DID THE NEIGHBORS OR SOMEONE NOT CALL THE POLICE?
I CAN'T EVEN IMAGINE HOW LOUD THIS WAS.
WHAT IS THAT? BLEACH?
I DON'T KNOW WHAT IT IS.
(Tarek) THEY TOOK A HAMMER TO THE FLOOR.
TELL ME WE CAN MATCH IT. IT'S REAL WOOD.
(Messina) DUDE, YEAH, NO. THIS FLOOR IS DONE.
LOOK AT THE CARPET. THAT IS NASTY.
(Christina) WHAT IS THAT?
(Tarek) WHAT NOW?
(Messina) CONCRETE IN THE TOILET?
(Christina) WHAT DOES THAT MEAN?
THE PLUMBING HAS GOT TO BE REPAIRED.
AND THIS IS GONNA COST --
THIS IS GONNA COST A LOT.
WHAT DO WE HAVE TO DO?
WE GOT TO JACKHAMMER UP THE FOUNDATION.
THIS IS -- THIS IS...
DUDE, THEY PUT FOOD ALL OVER THE WALLS.
YOU GOT TO BE KIDDING ME.
AT LEAST THEY LEFT YOU SOME SOAP TO CLEAN IT UP WITH.
WELL, WE GOT THE SAME PROBLEM IN HERE, GUYS.
AGAIN?
DUDE, CONCRETE IN THE TOILET AND THE BATHTUB.
YEAH, LOOK AT THIS.
(kicks toilet)
DUDE, LOOK, IT'S, LIKE, ROCK-HARD IN HERE.
DUDE, THIS IS BAD.
(sighs)
THIS IS WAY BAD.
HIT IT, MAN. THE DOOR'S ALREADY BROKEN.
THERE YOU GO.
THERE YOU GO.
AGAIN.
DUDE, WE'RE LUCKY THIS DIDN'T OVERFLOW, MAN.
WE GOT A LOT OF PLUMBING --
DUDE, I'M GONNA -- I'M GONNA -- I'M GONNA FREAK OUT.
(Christina) THIS IS MAJOR MONEY.
(Messina) DUDE, THERE'S 25 TO 30 GRAND, MAN.
THIS IS BAD.
(Tarek) 25 TO 30 GRAND JUST TO FIX THIS DAMAGE?
THAT PUTS US AT $460,000.
THAT'S NOT EVEN INCLUDING
UPGRADING THE KITCHENS AND BATHS.
IF WE LOSE MONEY ON THIS HOUSE,
OUR FLIPPING BUSINESS WILL GO UNDER
AND CHRISTINA AND I WILL HAVE TO FIGURE SOMETHING ELSE OUT
TO SUPPORT OUR FAMILY.
I'M MAKING A DECISION.
THE WHOLE IDEA OF THIS HOUSE IS TO CLEAN IT UP.
WE WANT TO MAKE IT LOOK CLEAN.
MINIMAL.
MINIMAL.
I THINK IF WE ACTUALLY SPENT SOME MONEY
AND UPDATED THIS KITCHEN, WE WOULD GET A TON MORE BUYERS
AND PEOPLE WOULD PAY MORE MONEY FOR THE HOUSE.
SOME GRANITE, STAINLESS-STEEL APPLIANCES,
MAYBE STAIN THE CABINETS.
LOOK AROUND AT THE AREA.
I THINK BUYERS WOULD PAY MORE
IF THEY WALKED IN AND IT WAS TOTALLY DIALED NICE.
YEAH, BUT YOU'RE NOT UNDERSTANDING.
IF WE DID THE NICE UPDATING,
THERE'S STILL DAMAGE ON TOP OF THE UPDATE.
SO WHAT WE'RE GONNA DO IS WE'RE GONNA PUT MINIMAL INTO IT,
SELL IT QUICK, PRICE IT LOW,
AND GET OUT OF THIS HOUSE AND MOVE ON.
(Christina) TAREK'S SO UPSET RIGHT NOW.
HE'S NOT THINKING CLEARLY.
I KNOW THESE UPGRADES ARE GONNA PAY OFF,
AND I HOPE THAT ONCE HE SLEEPS ON IT,
HE'LL JUST COME TO HIS SENSES AND GO WITH IT.
THIS IS A LOSER. THEY RUINED IT.
(duck quacking)
(Tarek) WE BOUGHT A $430,000 FORECLOSURE AT AUCTION...
AND SOLD YOUR WAY.
...ONLY TO DISCOVER THE HOUSE HAD BEEN COMPLETELY VANDALIZED.
INSTEAD OF FLIPPING IT FOR PROFIT,
WE MIGHT END UP LOSING MONEY.
I PUT A CALL IN TO OUR ATTORNEY TO SEE IF THERE'S EVEN A CHANCE
THE HOMEOWNER'S INSURANCE WILL COVER THE COST
TO FIX THIS DAMAGE.
(Christina) SO, WHAT'S GOING ON WITH THE INSURANCE COMPANY?
TOTALLY UP IN THE AIR RIGHT NOW.
WE CALLED THEM.
WE HAD A CONFERENCE CALL, TALKED TO SUPERVISORS.
I DON'T KNOW.
I'M JUST WAITING TO GET THE CALL SAYING "OH, WE'RE GOOD."
BUT, I MEAN, IF WE DON'T GET IT, WE'RE SCREWED.
WELL, WE'LL SEE WHAT THE HOUSE LOOKS LIKE RIGHT NOW.
IT'S DEMO DAY.
Sí.
OKAY, SO, LET'S JUST TALK ABOUT WHAT'S HAPPENING.
THE BIGGEST PROJECTS ARE FIXING ALL THE TOILETS AND PLUMBING.
RIGHT. OKAY.
THE WINDOWS --
WE'RE GONNA FIX THE WINDOWS.
OKAY.
WE'RE GONNA HAVE TO DO THE FLOOR.
(Christina) WHAT ABOUT THE BATHROOMS?
THE PLAN IS, WE'RE GONNA REMOVE THE SHOWER.
WE HAVE TO TAKE THIS TILE UP ANYWAY,
SO WE'RE GONNA REPLACE THIS TILE.
IF WE'RE GONNA TEAR THIS UP ANYWAYS,
WE'LL PUT OUR COOL CUSTOM VANITY IN HERE.
CLEAN THE MIRROR.
OKAY.
OUT OF HERE.
ALL RIGHT.
(Messina) SO, WHAT DO YOU WANT TO SALVAGE IN HERE, GUYS?
(Christina) NOTHING.
WHAT ARE WE GONNA DO WITH THE TUB?
DO WE HAVE TO RIP THE WHOLE THING OUT?
NO, WE'RE GONNA ACCESS THE PLUMBING FROM UNDERNEATH.
WE'LL JUST REGLAZE THIS IN HERE.
OKAY.
WHOA. WHOA. WHOA!
SO, HAVE WE HEARD ANYTHING BACK FROM THE INSURANCE COMPANY?
CROSS YOUR FINGERS.
ARE WE WAITING FOR INSURANCE TO START MAJOR WORK,
OR ARE WE JUST GOING FORWARD
WE'RE JUST GOING FORWARD.
OKAY.
WHAT'S THE TOTAL ON THE BID?
JUST DOING WHAT WE TALKED ABOUT, YEAH.
THIS RIGHT NOW, REALISTICALLY,
ON THE BID, WE'RE RIGHT AROUND $22,000.
JUST ALL THE REPAIRS AND THE MINIMAL STUFF.
OKAY, SO, HOW LONG IS IT GONNA TAKE?
THREE TO FOUR WEEKS.
WE'LL JUST BUST A MOVE ON IT, MAN,
AND GET IT DONE AS FAST AS WE CAN.
SO FAR, WE'RE JUST TALKING ABOUT FIXING THE DAMAGE IN THIS HOUSE,
BUT I KNOW TO GET TOP DOLLAR
FOR HOUSES IN THIS NEIGHBORHOOD,
BATHROOMS AND KITCHENS HAVE TO BE UPDATED.
AND WE NEED TO SERIOUSLY CONSIDER
SPENDING THE MONEY TO DO IT.
BYE.
(rattling)
(Tarek) AFTER LOOKING AT THE COMPS AGAIN, CHRISTINA'S RIGHT.
THE ONLY WAY TO SELL THIS HOUSE FOR A COMPETITIVE PRICE
IS TO UPGRADE THE KITCHEN AND BATHROOMS
TO THE LEVEL THAT'S EXPECTED IN THIS NEIGHBORHOOD.
THIS IS GONNA PUT THE REHAB OVER BUDGET,
BUT IT'S A RISK WE HAVE TO TAKE.
SOME CHROME FAUCETS, SOME NICE, WHITE BACKSPLASH, DARK CABINETS.
(Tarek) WE'RE PROBABLY GONNA BE SPENDING --
AW, BABY.
DAN IS HOOKING US UP BY TAKING US
TO A CONTRACTOR-ONLY SUPPLY WAREHOUSE.
HE'S GONNA GET US A GREAT DEAL ON AN AWESOME KITCHEN.
THERE'S DAN. SAY "HI, DAN."
HI, DAN.
(Messina) WELCOME TO MY WORLD.
LET'S GO IN.
WE'RE ABLE TO GET YOU A DECENT PRICE
BECAUSE WE'RE GOING WHOLESALE NOW.
HEY, LOOK, THEY GOT A FULL KITCHEN SET UP.
(Messina) I KNOW.
WHAT DO YOU THINK OF THIS?
LET'S DO ONE KITCHEN AT A TIME.
(Christina) TAYLOR DOESN'T LIKE THIS ONE.
THIS ONE LOOKS KIND OF LIKE ITALIAN.
(cries)
I DON'T LIKE THE GRANITE.
(Tarek) HONEY. (smooches)
THE PULLS -- REALLY DO NOT LIKE.
WELL, YOU GOT TO REMEMBER, PULLS ARE AN OPTION.
WE CAN PUT ANYTHING WE WANT THERE.
YEAH.
(Tarek) THIS LOOKS ORANGE TO ME,
AND I HATE THIS BACKSPLASH -- OR THE GRANITE.
SO YOU WANT TO GO A LITTLE BIT DARKER?
DARKER. HOW ABOUT THIS ONE?
THIS IS A SHAKE OR COFFEE, YOU KNOW, KIND OF HIGHER-END,
MORE MODERN-LOOKING.
I LIKE THE COLOR,
BUT THE CABINETS LOOK KIND OF CHEAPY.
(Tarek) NO, IT JUST LOOKS FUNKY.
THE FACE IS REALLY PLAIN, BORING.
YEAH, I DON'T LIKE THESE, LIKE, LINES IN IT.
AND I DEFINITELY DON'T LIKE BLACK GRANITE.
BLACK COUNTERTOPS AGAINST DARK CABINETS
WILL MAKE THE KITCHEN FEEL LIKE A BLACK HOLE.
THE HIGHER-END BUYERS THAT WE'RE TRYING TO ATTRACT
ARE GONNA WANT LIGHTER COUNTERTOPS
THAT MAKE THE KITCHEN FEEL BRIGHTER.
THIS ONE'S MY LEAST FAVORITE.
I HATE ORANGE. THE GRANITE'S TERRIBLE.
YEAH, BUT THAT'S NOT ORANGE. THAT'S HONEY.
NO.
THAT'S SALMON.
MAPLE IS SO, LIKE, 1990.
COME ON.
WHERE'S THE GOOD STUFF?
WELL, WE GOT DARKER OVER HERE.
OOH, I LIKE THIS ONE.
I LOVE THE LIGHT AND DARK COMBINATION. I LOVE THE PULLS.
I LIKE THE NICE DESIGN WORK IN THE CABINETS.
I THINK IT LOOKS REALLY HIGH-END.
THE CONTRAST BETWEEN THE DARK WOOD CABINETS
AND THE WHITE GRANITE COUNTERS FEELS RICH
AND WILL APPEAL TO MORE BUYERS.
HERE YOU GO. PRETTY.
(Tarek) HEY, IS THIS GRANITE THE SAME GRANITE AS HERE?
SIMILAR. THIS IS IT RIGHT HERE.
YOU WANT TO JUST GO WITH THIS ONE?
I LIKE IT. IT MATCHES NICE.
(Christina) YEAH. LOOKS PRETTY.
HOW MUCH? WHAT ARE WE LOOKING AT?
(Messina) $6,000, $7,000 ALTOGETHER.
$6,000 TO $7,000? THAT'S ALL?
THAT'S IT.
YEAH, THAT'S A PRETTY DAMN GOOD DEAL.
YEAH.
(Tarek) I THINK WE'RE SOLD, DAN.
ALL RIGHT. EXCELLENT.
YEAH? YOU LIKE THAT ONE?
CONTRACTOR IN THE MAKING.
(laughs)
(drill whirring)
DAN, YOU GOT MY HUBBY DOING SOME MANUAL LABOR?
I DO.
HOW'D YOU PULL THAT OFF?
I DO THIS ALL THE TIME.
YOU PAYING HIM?
FINGERS.
ALL SAID AND DONE,
THIS KITCHEN'S COSTING US UPWARDS OF 10 GRAND.
IF OUR HOMEOWNER'S INSURANCE POLICY
DOESN'T COVER THE COST OF THE VANDALISM WE REPAIRED,
WE'RE IN TROUBLE.
AND SOLD YOUR WAY.
(Tarek) WE BOUGHT A FORECLOSURE AT AUCTION
AND WALKED THROUGH THE DOOR
TO DISCOVER THE HOME HAD BEEN VANDALIZED.
THERE WAS OVER $20,000 IN DAMAGE.
WE'RE OVER BUDGET AND BEHIND SCHEDULE.
AND WE'RE JUST KEEPING OUR FINGERS CROSSED
THAT WE CAN SELL THIS HOUSE AND GET OUR MONEY BACK.
(gasps) HI.
WHEN WORK IS IN FULL SWING ON OUR HOUSE FLIPS,
IT'S A DANGEROUS ENVIRONMENT.
I'M KEEPING OUR DAUGHTER, TAYLOR,
AS FAR AWAY FROM THAT HOUSE AS POSSIBLE.
I CAN'T BELIEVE THEY'D POUR CONCRETE DOWN THE PLUMBING.
I KNOW. WHO WOULD EVEN THINK OF SUCH A THING?
I DON'T KNOW.
SOMEBODY WHO KNEW HOW MUCH MONEY IT WOULD COST TO FIX.
TAY-TAY, LET'S RUN ON THE BRIDGE.
(cellphone rings)
HEY, BABE.
(Tarek) Got some awesome news.
We got the $15,000 from the insurance company.
15 GRAND? THAT'S THE BEST NEWS EVER.
We'll be getting the check in a couple of days, they said.
OH, MY GOSH. WHAT A RELIEF.
SO COOL.
All right, well, call you later. Love you.
ALL RIGHT. LOVE YOU. BYE.
YAY! TAY-TAY, WE JUST GOT SOME GOOD NEWS!
(laughs)
NO, OKAY.
ALL RIGHT, LET'S GO CHANGE YOUR DIAPEY,
AND THEN WE'LL COME BACK AND PLAY.
YAY!
(Tarek) OOH, TILE. YOU GUYS DID THE DIAMONDS, RIGHT?
HOW DOES THAT LOOK?
OH, LOOKS SO MUCH BETTER.
THIS IS THE FIRST TIME WE'VE DONE IT LIKE THIS.
IT LOOKS SO MUCH FANCIER.
FLOORS LOOK AWESOME.
NICE CHOICE.
I WAS ABLE TO SAVE YOUR HUGE BATHTUB.
WE GOT THE MAJORITY OF THE TILE UP IN HERE.
WE'RE DOING A CERAMIC BASE TILE
WITH SOME GLASS-MOSAIC-TILE ACCENTS
TO ADD SOME STYLE TO THE BATHROOM.
BUT WE'RE STILL STAYING AT A NEUTRAL COLOR PALETTE
THAT APPEALS TO MOST BUYERS.
(Messina) THE MOSAIC'S IN. IT LOOKS GOOD.
WE GOT YOUR VANITY SET.
(Tarek) LOOKS WAY BETTER.
IT WAS SO NASTY BEFORE.
IT LOOKS SO TOTALLY DIFFERENT.
IT'S COMING TOGETHER.
I THINK THIS HOUSE IS GONNA BE AWESOME.
WE COULD DO SOME REALLY COOL LIGHTING UP THERE,
A COOL BEVELED-EDGE MEDICINE CABINET,
THE SQUARE SINKS WITH THE COOL CHROME FAUCET.
(Messina) THANK YOU.
HOW MANY MORE DAYS TILL WE'RE DONE, YOU THINK?
YOU KNOW, REALISTICALLY, GUYS, WITH THE FINE TUNING WE HAVE,
WE PROBABLY HAVE FOUR OR FIVE MORE DAYS HERE.
(Tarek) FOUR OR FIVE MORE DAYS?
(engine turns over)
(Tarek) THE INTERIOR OF THE HOUSE IS COMING OUT GREAT,
BUT THERE'S STILL EVIDENCE OF VANDALISM OUTSIDE.
THE PILLARS ON THE WALK HAVE GRAFFITI ON THEM.
HUH?
PROBLEM!
WHAT DO WE GOT?
AND THE FRONT GATE'S RUSTED OUT.
TALK ABOUT A CURB-APPEAL PROBLEM.
HERE, LOOK HOW -- LOOK HOW, LIKE, SCREWED UP THIS THING IS.
(Messina) WE GOT LOTS OF RUST IN THERE, MAN, DON'T WE?
DUDE, THIS THING'S GONNA FALL OVER.
YEAH, IT LOOKS LIKE IT'S BUSTED.
THE WELD'S COME LOSE ON THIS BACK SIDE.
WHOLE THING'S FALLING DOWN ANYWAYS.
ALL RIGHT, I'LL CALL THE IRON GUY.
WE'LL GET HIM OUT HERE, GET AN ESTIMATE FOR IT,
AND GET IT DONE.
IT NEVER ENDS.
I SWEAR THERE'S ALWAYS SOMETHING.
DAN AND HIS CREW ARE DOING ALL THE FINISHING TOUCHES
ON THE HOUSE.
THEY'RE DOING BASEBOARDS, CARPETS, FAUCETS, SINKS,
AND EVEN CHANDELIERS.
THE HOUSE IS ALMOST DONE,
BUT OPENING UP ONE MORE PROJECT MIGHT PAY OFF BIG.
SO, I KEEP GOING BACK AND FORTH
ON MAKING THIS AN ACTUAL BEDROOM OR NOT.
(Christina) CAN WE MARKET IT AS AN ACTUAL BEDROOM?
I BELIEVE SO.
SUCH A SMALL ROOM ALREADY.
WHERE WOULD WE PUT A CLOSET?
RIGHT HERE. IT WOULD BE TWO FEET.
THEN IT WILL BE AN ACTUAL DOWNSTAIRS BEDROOM.
THEN WE CAN MARKET IT AS A FOUR-BEDROOM
AS OPPOSED TO A THREE?
YEAH, AND IT'S $800 TO DO IT.
FOR $800, WE CAN ADD A CLOSET IN THIS ROOM
AND MARKET IT AS A FOUR-BEDROOM INSTEAD OF A THREE,
WHICH IS A DIFFERENCE OF THOUSANDS OF DOLLARS
IN LIST PRICE.
A LOT SOLD RECENTLY.
NO, THERE'S FOUR FOR SALE, AND THERE'S FIVE PENDING.
IT'S REALLY GOOD.
IT'S REALLY LOW.
WE HAVEN'T SEEN THIS IN A LONG TIME. THAT'S 50/50.
AS MANY FOR SALE AS MANY PENDING.
THAT MEANS THE MARKET'S STABLE.
THAT'S REALLY GOOD NEWS.
HERE'S OUR FLOOR PLAN.
IT HAS A LARGER LOT, BUT OURS HAS NICER UPGRADES.
IT'S A HOUSE.
I MEAN, IT HAS A LARGE GRASSY AREA,
WHICH, I MEAN, THIS IS A FAMILY NEIGHBORHOOD,
SO I THINK PEOPLE WITH KIDS
WOULD PREFER GRASSY AREA AS OPPOSED TO OUR HOUSE,
WHICH IS ALL CONCRETE WITH A SLOPE.
SOME PEOPLE WANT YARDS. SOME PEOPLE WANT A NICER HOUSE.
AND THIS LOT'S REALLY SMALL. SEE WHAT HAPPENS.
(Tarek) THE HOUSE HAS BEEN ON THE MARKET FOR A COUPLE OF WEEKS,
AND TODAY IS OUR FIRST OPEN HOUSE.
WE LISTED IT AT $550,000.
IT'S BEEN A LONG, BUMPY ROAD
TURNING THIS VANDALIZED FORECLOSURE
INTO A BEAUTIFUL FAMILY HOME.
AND WE REALLY HOPE WE CAN SELL IT FOR A PROFIT.
I LOVE THAT WHITE GATE, TOO, WITH THE LITTLE RED FLOWERS.
(woman) PROBABLY WELL-TAKEN CARE OF.
IF YOU TAKE CARE OF YOUR LAWN,
YEAH.
(woman) HI. GOOD. HOW ARE YOU?
SO, IT'S 2,025 SQUARE FOOT, FOUR-BEDROOM, THREE-BATH.
AND IT'S BEEN COMPLETELY REDONE.
HELLO.
WELCOME. HI.
GREAT.
HERE'S THE INFO ON IT.
ALL THE APPLIANCES.
I CAN'T BELIEVE WHAT WAS HAPPENING.
I HAVE NEVER HAD THIS MANY PEOPLE THROUGH
WITHIN THE FIRST HOUR.
I'M SUPER EXCITED.
EVERYBODY LOVES IT, SO I'M HOPING WE SELL TODAY.
THAT WOULD BE AMAZING.
IF THEY ONLY KNEW
WHAT A DISGUSTING PLACE THIS WAS WHEN WE BOUGHT IT.
(woman) OH, I LOVE THE WINDOWS BACK HERE.
THIS IS SO NICE.
I LIKE THIS.
WINDOWS ARE ALL REALLY NICE.
I LIKE HOW YOU CAN SEE THE BACKYARD FROM THE KITCHEN.
ALL NEW APPLIANCES?
(Tarek) ALL NEW APPLIANCES.
PRETTY MUCH EVERY SINGLE THING IN THIS HOUSE IS BRAND-NEW.
OKAY. WHAT DO YOU THINK OF THE KITCHEN?
IT'S GORGEOUS.
I LOVE ALL THE UPDATED FIXTURES, AND THE KITCHEN IS REALLY NICE.
THE GRANITE COUNTERTOPS AND THE DARK WOOD IS BEAUTIFUL.
(woman) YEAH.
IT IS.
(man) THAT'S ONE OF THE NICEST ONES WE'VE SEEN, ISN'T IT?
YEAH, IT IS.
I LOVE THE FLOORS, THE DARK FLOORS.
(woman) YEAH.
ARE THESE REAL HARDWOOD FLOORS?
(Tarek) THESE ARE ACTUALLY LAMINATE,
BUT THEY'RE 12-MILLIMETER LAMINATE,
WHICH MEANS THEY'RE THICKER, SO THEY APPEAR TO BE REAL HARDWOOD.
(Christina) LIKE, THE DISTRESSED-LOOKING,
SO IT KIND OF APPEARS TO LOOK LIKE HARDWOOD.
AND I LIKE THE TEXTURE ON THAT, TOO.
BEAUTIFUL.
(woman) ISN'T IT GORGEOUS?
THEY DID A GOOD JOB IN HERE.
LOOK AT ALL THE DETAIL IN THE SHOWER.
YEAH, IT'S GREAT.
OH, WOW.
I LIKE HOW IT'S OPEN.
YEAH.
I LIKE THE DOUBLE SINKS.
THAT'S GOOD.
I LOVE HOW OPEN IT IS.
I BET YOU LIKE THE CHANDELIER, HUH?
I LOVE THE SPARKLES.
(man laughs)
IS THAT THE SELLING POINT?
YEAH, I'LL TAKE THE HOUSE JUST FOR THE CHANDELIER.
I'M A HOME INSPECTOR, SO WHEN WE LOOK AT HOUSES,
I DEFINITELY TRY TO PICK THEM APART INSIDE AND OUT.
AND THIS ONE LOOKED REALLY GOOD.
STRUCTURALLY, IT'S GREAT.
I DIDN'T SEE ANY ISSUES WITH IT,
AND I DEFINITELY THINK WE CAN MAKE IT OUR OWN.
I REALLY LIKE IT.
DEFINITELY MY FAVORITE BY FAR.
(Mansouri) THIS IS A VERY DESIRABLE AREA.
WE HAVE A LOT OF BUYERS THAT ARE LOOKING IN THIS AREA
BECAUSE THERE'S GOOD SCHOOLS.
YOU HAVE EASY ACCESS TO THE FREEWAYS.
AND IT'S VERY FAMILY-ORIENTED.
WELL, GOOD NEWS.
MY CLIENTS LOVE THE HOME.
GREAT.
SO, WE ARE PREPARED TO COME IN WITH A FULL-PRICE OFFER.
THIS IS EXCITING.
THIS IS OUR FIRST FULL-PRICE OFFER AT $550,000,
BUT NOW IT'S TIME TO SEE
IF WE CAN NEGOTIATE THAT PRICE A BIT HIGHER.
(Christina) YOU WANT TO TELL HER $560,000?
THAT WOULD BE THE ABSOLUTE LOWEST I THINK WE SHOULD TAKE.
YEAH.
ALL RIGHT. I'LL TELL HER.
OKAY.
WE'LL DO $560,000.
$560,000.
$560,000 AND WE'LL TAKE IT OFF THE MARKET TODAY. DONE.
I DON'T THINK THIS IS A BAD DEAL.
THERE'S ANOTHER HOME, SAME FLOOR PLAN ON THE MARKET, $585,000.
OKAY. ALL RIGHT.
THEY WANT TO GO FOR IT. WE'RE GOOD.
(Tarek) IT'S BEEN TWO MONTHS
SINCE WE STARTED CONSTRUCTION ON THIS FLIP,
AND WE'RE FINALLY IN ESCROW FOR $560,000.
WE BOUGHT THE HOUSE FOR $430,000
AND PUT $29,000 INTO IT.
IF THIS DEAL GOES THROUGH, WE'RE GONNA MAKE $65,000.
TIME TO FIND ANOTHER HOUSE TO FLIP.