It's Not a Reality Show
You should probably also change the channel if you find yourself watching any real estate investing reality shows.
There are so many real estate shows on TV nowadays. You almost have to try not to see one.
They’re half hour (maybe an hour) shows that are at least semi-scripted. It’s the real estate equivalent to watching professional wrestling. You may very well enjoy the drama and action, but at the end of the day you gotta know it’s not “real.”
Sure, they’ll usually try to show the issues that arise and the worries and concerns the investors go through. They do that because it adds tension to the “plot.” But they always seem to come out OK, right?
But one of the biggest issues with these shows is that they tend to simplify the “profit” they make.
“We bought it for $200,000, we put $33,000 into it, and we sold it for $350,000. We made $117,000. Not bad for a few weeks of work!”
These shows often depict the costs of getting things done, or the cost of a purchase, as lower than they probably are. And if you listen closely, a lot of times they’re talking about how much they’re going to sell the house for...not how much they actually sold it for.
It’s very misleading for the average viewer. It’s encouraging. And it makes it look pretty fun and exciting, even with all the issues they show the investors dealing with on the show. After all, it always works out in the end and is worth it since the profits are so good.
This isn’t to discourage you…just don’t let these shows overly encourage you either. Be more realistic than these reality shows, and you should be just fine.