Property Wars, Flipping Boston. Flip or Flop. The number of real estate based reality TV shows gracing our screens has exploded in the last couple of years. According to IMDB.com five reality based real estate shows rank higher in popularity than even long-running shows like American Idol and the Glee Project!
So does this fascination with watching how to flip houses on TV, translate into more people actually starting their own real estate investing business? According to the Bureau of Labor Statistics, Entrepreneurship plays a vital role in the growth of the U.S. economy and reports that the number of “new establishments” (new businesses) are on a hockey stick growth trajectory – almost at peak levels in 2005 before the recession hit. In addition starting a new business in the finance, insurance and real estate sectors gives your business the highest chance of success, according to a recent 2016 study.
But are people actually interested in becoming real estate entrepreneurs? The company behind Success Path Education, a Utah based real estate education program endorsed by Tarek and Christina El Moussa the stars of HGTV’s hit show Flip or Flop says resoundingly, yes. “Since Success Path Education began in April 2014, we’ve had over 18,000 students complete our trainings,” says James Carlson, CEO of Advanced Real Estate Education “In total, across all our real estate investing programs we’ve actually had over 200,000 people attend our trainings, with a 4.9 star customer satisfaction rating out of five stars.” Carlson adds “Starting your own business as a real estate investor makes a lot of sense because you can do it part time, you don’t need to use any of your own money to fund your deals – and you can be physically located in any part of the country. Upmarkets, down-markets – there’s always money to be made in real estate. All that changes are the strategies you use.”
It turns out that most of the world’s billionaires agree. According to Forbes list of the world’s richest people, fifteen new people joined the list thanks to their real estate holdings, bringing the total number of real estate billionaires on Forbes’ list to 135.
That may well be fine for the billionaires, but what about the average Joe or Jane Smith that just wants to quit their day job and start a real estate business from home?
It turns out Tarek and Christina El Moussa started their real estate business from very humble beginnings “We have to kind of laugh when we look back at how bleak things were for us when we first started,” says Tarek El Moussa. “We were living in a tiny apartment as a married couple and couldn’t afford the rent so we had to get a room mate.”
The couple started their real estate business slowly, “we did our first flip which took us about 6 months longer than we thought it would, but despite all the mistakes we made we still made money, “ smiles Christina El Moussa. “That first year we did three deals, the next year we tripled that number and now, six years later we average between eighty to one hundred deals a year.”
So what is the El Moussa’s secret to their success? Tarek laughs, “there is no secret. You just have to be determined and push through the obstacles that are always going to crop up. Even with all the educational classes and trainings we took, we still made plenty of mistakes – its just part of your learning, but I’m so glad we did because we would never be where we are today if we hadn’t jumped in”.