1 00:00:00,000 --> 00:00:02,820 - If you wanna paint your walls pink and purple 2 00:00:02,820 --> 00:00:05,040 and do gold toilets, go ahead. 3 00:00:05,040 --> 00:00:06,330 Enjoy it, love it. (upbeat music) 4 00:00:06,330 --> 00:00:08,700 Just know when you go to sell your house, 5 00:00:08,700 --> 00:00:10,170 you're gonna have to replace your toilets 6 00:00:10,170 --> 00:00:11,820 and you're gonna have to replace your wall 7 00:00:11,820 --> 00:00:15,060 because you're gonna leave money on the table if you don't. 8 00:00:15,060 --> 00:00:17,850 - My guest today is Tarek El Moussa. 9 00:00:17,850 --> 00:00:21,697 You've probably seen them on HGTV on "Flip or Flop," 10 00:00:21,697 --> 00:00:24,300 "Flipping 101," or "Flipping El Moussas." 11 00:00:24,300 --> 00:00:27,810 But Tarek is also a well seasoned real estate investor 12 00:00:27,810 --> 00:00:31,500 who's bought fixed and sold over a thousand homes, 13 00:00:31,500 --> 00:00:33,810 and he spent years helping homeowners 14 00:00:33,810 --> 00:00:36,840 determine what adds value and what doesn't, 15 00:00:36,840 --> 00:00:39,990 which makes him exactly the person I wanted to talk to 16 00:00:39,990 --> 00:00:41,700 about ROI. 17 00:00:41,700 --> 00:00:46,020 Welcome to "Own It." I am Angie Hicks, co-founder of Angie. 18 00:00:46,020 --> 00:00:48,630 And the honest conversations that every homeowner 19 00:00:48,630 --> 00:00:50,880 wants to have start right here. 20 00:00:50,880 --> 00:00:53,850 In today's episode, we talk about what works 21 00:00:53,850 --> 00:00:56,760 in home improvement, from choosing the right projects 22 00:00:56,760 --> 00:01:00,930 and people to avoiding the mistakes that can cost you time, 23 00:01:00,930 --> 00:01:02,880 money, and maybe even a deal. 24 00:01:02,880 --> 00:01:06,000 Here's my conversation with Tarek El Moussa. 25 00:01:06,000 --> 00:01:09,030 You got into real estate at a super young age. 26 00:01:09,030 --> 00:01:10,590 You know, what drew you there? 27 00:01:10,590 --> 00:01:13,380 - It was kind of out of the blue. I was 19 years old. 28 00:01:13,380 --> 00:01:15,120 I had just graduated high school 29 00:01:15,120 --> 00:01:17,310 and I was selling Cutco kitchen knives. 30 00:01:17,310 --> 00:01:19,020 I developed the sales book. 31 00:01:19,020 --> 00:01:21,390 So I had all my leads, all my contacts. 32 00:01:21,390 --> 00:01:23,880 I had my little knife selling business. 33 00:01:23,880 --> 00:01:27,244 And what happened was I lost my entire lead book. 34 00:01:27,244 --> 00:01:30,840 (chuckles) And there was no computer, there was no database. 35 00:01:30,840 --> 00:01:31,860 It was an actual book, 36 00:01:31,860 --> 00:01:34,170 and I literally put myself outta business. 37 00:01:34,170 --> 00:01:35,730 And I saw this crooked sign, 38 00:01:35,730 --> 00:01:38,070 and it was flapping in the wind actually, 39 00:01:38,070 --> 00:01:41,460 and it said, "Wise Old Owl Real Estate School." 40 00:01:41,460 --> 00:01:43,890 I had what I call a defining moment, 41 00:01:43,890 --> 00:01:46,020 which is a moment in your life 42 00:01:46,020 --> 00:01:47,670 that changes the trajectory of your life, 43 00:01:47,670 --> 00:01:50,227 because I looked at the sign, I thought to myself, 44 00:01:50,227 --> 00:01:52,290 "If I can sell knives, I can sell houses." 45 00:01:52,290 --> 00:01:54,990 And immediately I walked across the parking lot 46 00:01:54,990 --> 00:01:56,880 and signed up for real estate classes. 47 00:01:56,880 --> 00:01:58,980 And that is literally how I got into real estate. 48 00:01:58,980 --> 00:02:00,870 So then my first six months in the business, 49 00:02:00,870 --> 00:02:04,290 I got my license, I started, I showed up at 9:00. 50 00:02:04,290 --> 00:02:06,750 I went to the coffee thing, I went to lunch 51 00:02:06,750 --> 00:02:08,280 and Taco Tuesday. 52 00:02:08,280 --> 00:02:09,960 And what happened was nothing. 53 00:02:09,960 --> 00:02:12,090 I learned that I can't make any money 54 00:02:12,090 --> 00:02:13,980 if I do what everybody else is doing. 55 00:02:13,980 --> 00:02:15,450 I went from living in a garage 56 00:02:15,450 --> 00:02:18,630 to almost buying a million dollar house at 21 57 00:02:18,630 --> 00:02:21,090 because I had ended up earning a couple hundred thousand 58 00:02:21,090 --> 00:02:23,940 in gross commissions in a 90-day period. 59 00:02:23,940 --> 00:02:27,159 - I love what you're talking about here, Tarek. 60 00:02:27,159 --> 00:02:30,240 I mean, when I started Angie's List, I was similar age. 61 00:02:30,240 --> 00:02:32,880 I was 22, and I had to do sales, 62 00:02:32,880 --> 00:02:34,170 and I had to go door to door. 63 00:02:34,170 --> 00:02:36,510 And I treated it like a math equation. 64 00:02:36,510 --> 00:02:38,400 It was like, "I have to knock on so many doors 65 00:02:38,400 --> 00:02:40,410 because so many doors will result 66 00:02:40,410 --> 00:02:43,770 in so many people saying yes," and it was just math. 67 00:02:43,770 --> 00:02:44,820 It's a math equation. 68 00:02:44,820 --> 00:02:46,020 - I'm gonna tell you this, this is... 69 00:02:46,020 --> 00:02:48,362 Okay, I'm such a big fan of you, 70 00:02:48,362 --> 00:02:50,190 but now I'm the biggest fan ever of you, 71 00:02:50,190 --> 00:02:52,440 'cause most people don't know this about me. 72 00:02:52,440 --> 00:02:57,000 I built my entire career door knocking and cold calling. 73 00:02:57,000 --> 00:03:00,480 The first 10 years, I had no marketing. 74 00:03:00,480 --> 00:03:02,790 I did what you did, I hit the streets. 75 00:03:02,790 --> 00:03:05,040 Like even, that's how I started flipping houses. 76 00:03:05,040 --> 00:03:07,590 I used to get in my car and go knock on foreclosures. 77 00:03:07,590 --> 00:03:08,910 I mean, dogs would chase me. 78 00:03:08,910 --> 00:03:11,580 There'd be drive-bys, police chases. 79 00:03:11,580 --> 00:03:15,840 So to hear that you went door to door 80 00:03:15,840 --> 00:03:18,270 shows me exactly why we're here today. 81 00:03:18,270 --> 00:03:21,390 - True grit and character building is what I learned. 82 00:03:21,390 --> 00:03:24,510 So tell me when you were, you know, so you got going, 83 00:03:24,510 --> 00:03:26,130 things were going great, right? 84 00:03:26,130 --> 00:03:29,093 But then you hit the financial crisis of '08. 85 00:03:29,093 --> 00:03:30,930 No one thought the housing market 86 00:03:30,930 --> 00:03:32,400 was gonna collapse like it did. 87 00:03:32,400 --> 00:03:35,820 I remember sitting in a coffee shop watching it happen 88 00:03:35,820 --> 00:03:38,370 and thinking, "Oh my gosh, what does this mean 89 00:03:38,370 --> 00:03:39,720 for Angie's List back then, 90 00:03:39,720 --> 00:03:41,970 because are people gonna be renovating?" 91 00:03:41,970 --> 00:03:43,200 If they can't keep their houses, 92 00:03:43,200 --> 00:03:44,640 they can't renovate their houses. 93 00:03:44,640 --> 00:03:46,920 And I think you too had a similar story. 94 00:03:46,920 --> 00:03:49,170 - Yeah. So man, the Great Recession. 95 00:03:49,170 --> 00:03:51,720 So I was doing what I always did. 96 00:03:51,720 --> 00:03:54,300 I was getting listings, I was putting them on for sale, 97 00:03:54,300 --> 00:03:56,400 and then I'd go get the next one, I'd put on for sale. 98 00:03:56,400 --> 00:03:59,610 And then I realized, well, I'm putting them for sale, 99 00:03:59,610 --> 00:04:01,080 but none of them are selling. 100 00:04:01,080 --> 00:04:02,700 Wait a minute, something's going on. 101 00:04:02,700 --> 00:04:03,630 I started doing research. 102 00:04:03,630 --> 00:04:06,300 I noticed that inventory had spiked 84% 103 00:04:06,300 --> 00:04:08,340 in the summer of 2006. 104 00:04:08,340 --> 00:04:10,560 So I really studied the market, 105 00:04:10,560 --> 00:04:13,620 and I determined, for two different reasons, 106 00:04:13,620 --> 00:04:17,550 one, based on studying and, two, based on my income, 107 00:04:17,550 --> 00:04:18,810 there was a problem (chuckles) 108 00:04:18,810 --> 00:04:20,940 because I wasn't making money, my houses weren't selling. 109 00:04:20,940 --> 00:04:24,870 So I listed my main house and one investment, 110 00:04:24,870 --> 00:04:27,330 I closed escrow, both of them. 111 00:04:27,330 --> 00:04:32,330 One was December, 2006, the second one was March, 2007. 112 00:04:32,790 --> 00:04:37,590 And as you know, the subprime market crashed spring of 2007. 113 00:04:37,590 --> 00:04:40,980 So I barely, barely, barely made it out of there. 114 00:04:40,980 --> 00:04:44,200 And then that first house that I sold right before the crash 115 00:04:45,450 --> 00:04:48,300 sold almost exactly a year later 116 00:04:48,300 --> 00:04:51,705 as a short sale for 700,000, 117 00:04:51,705 --> 00:04:53,640 which was 300,000 less. 118 00:04:53,640 --> 00:04:55,890 - As in I'm glad you did not lose your love 119 00:04:55,890 --> 00:04:57,360 for real estate, that you were able 120 00:04:57,360 --> 00:04:59,010 to pull yourself back from that. 121 00:04:59,010 --> 00:05:00,330 You know, one of the things that's interesting to me 122 00:05:00,330 --> 00:05:02,010 is just how many houses you flip. 123 00:05:02,010 --> 00:05:04,350 What, over a thousand houses, something like that. 124 00:05:04,350 --> 00:05:06,360 What is it when you walk into a house, 125 00:05:06,360 --> 00:05:07,860 and I'm not talking about just a house 126 00:05:07,860 --> 00:05:08,820 you're potentially gonna flip, 127 00:05:08,820 --> 00:05:10,560 but you've been in so many houses. 128 00:05:10,560 --> 00:05:14,340 Like, what do you see buyer, typical average homeowner 129 00:05:14,340 --> 00:05:16,290 who's buying it for themselves doesn't see? 130 00:05:16,290 --> 00:05:18,810 What are things that catch your eye? 131 00:05:18,810 --> 00:05:21,750 - The first thing I see is the potential, 132 00:05:21,750 --> 00:05:23,700 and really the potential comes 133 00:05:23,700 --> 00:05:25,920 from the layout and the bones. 134 00:05:25,920 --> 00:05:29,460 Because if it's very expensive to fix the layout 135 00:05:29,460 --> 00:05:32,340 and the bones, it's gonna be expensive 136 00:05:32,340 --> 00:05:33,750 for the overall project. 137 00:05:33,750 --> 00:05:36,150 So one of the things I really like to find 138 00:05:36,150 --> 00:05:38,730 is an older dated house, but maybe it has good bones 139 00:05:38,730 --> 00:05:40,980 and a good floor plant so I don't have to remove walls 140 00:05:40,980 --> 00:05:44,640 and do heavy construction and fix foundations 141 00:05:44,640 --> 00:05:46,560 and things like that. 142 00:05:46,560 --> 00:05:47,673 - Are there things when you look at a house 143 00:05:47,673 --> 00:05:49,830 that you're like, if I walked into this house 144 00:05:49,830 --> 00:05:50,790 and I was getting ready to buy it, 145 00:05:50,790 --> 00:05:52,597 what advice would you have for a homeowner of like, 146 00:05:52,597 --> 00:05:55,080 "Hey, this thing or these two things 147 00:05:55,080 --> 00:05:56,640 I would always steer away from." 148 00:05:56,640 --> 00:05:58,350 What are things that you're kind of like, 149 00:05:58,350 --> 00:06:01,170 you'll be in over your head quicker than you can imagine? 150 00:06:01,170 --> 00:06:02,003 - Here's the truth. 151 00:06:02,003 --> 00:06:05,010 We have a really big problem in this country where, 152 00:06:05,010 --> 00:06:08,280 since 2008, 2009, 153 00:06:08,280 --> 00:06:11,460 I mean, how many people have started flipping houses 154 00:06:11,460 --> 00:06:13,830 probably 'cause that that show called "Flip and Flop" 155 00:06:13,830 --> 00:06:15,090 on HGTV. - Right. 156 00:06:15,090 --> 00:06:18,630 - It's very, very important for homeowners 157 00:06:18,630 --> 00:06:20,430 or anyone looking to sell their house 158 00:06:20,430 --> 00:06:23,550 to make sure they're aligned with the right people. 159 00:06:23,550 --> 00:06:24,870 Because at the end of the day, 160 00:06:24,870 --> 00:06:26,820 the right people are gonna make or break 161 00:06:26,820 --> 00:06:31,110 your entire transaction, your remodel, your design. 162 00:06:31,110 --> 00:06:33,220 And the biggest mistake I used to make 163 00:06:34,140 --> 00:06:36,660 was looking at the cheapest person. 164 00:06:36,660 --> 00:06:40,380 And I learned very, very, very fast, 165 00:06:40,380 --> 00:06:42,150 you get what you pay for. (chuckles) 166 00:06:42,150 --> 00:06:46,740 In 2026, what's important for a homeowner 167 00:06:46,740 --> 00:06:48,690 is to do the things to their house 168 00:06:48,690 --> 00:06:51,030 before ever putting it for sale 169 00:06:51,030 --> 00:06:54,450 to reduce the risk of it falling out of escrow. 170 00:06:54,450 --> 00:06:57,450 Because right now, of homes falling out of escrow, 171 00:06:57,450 --> 00:07:00,180 seven out of 10 houses are falling out 172 00:07:00,180 --> 00:07:03,600 because they're not passing the home inspection. 173 00:07:03,600 --> 00:07:07,170 And a lot of times it's not passing over dumb items 174 00:07:07,170 --> 00:07:09,720 that, if they were fixed beforehand, 175 00:07:09,720 --> 00:07:11,340 they never would've been an issue. 176 00:07:11,340 --> 00:07:15,090 So with my company, Nestla Home, if people want to, 177 00:07:15,090 --> 00:07:18,390 I always suggest, before we list it, or before you list it, 178 00:07:18,390 --> 00:07:19,560 get a home inspection. 179 00:07:19,560 --> 00:07:22,200 That way if there's a red flag, 180 00:07:22,200 --> 00:07:25,080 you could fix and remove the red flag. 181 00:07:25,080 --> 00:07:27,360 - Right, put you in a much better negotiating. 182 00:07:27,360 --> 00:07:29,010 - Yeah, and it puts you in a better position 183 00:07:29,010 --> 00:07:30,510 for negotiating. 184 00:07:30,510 --> 00:07:32,190 And when you really think about it, 185 00:07:32,190 --> 00:07:35,610 imagine a family or a person spending months 186 00:07:35,610 --> 00:07:36,750 trying to sell their house. 187 00:07:36,750 --> 00:07:39,750 Every weekend there's open houses, they gotta leave. 188 00:07:39,750 --> 00:07:42,900 And after six months of doing this, they get an offer, 189 00:07:42,900 --> 00:07:46,410 they go into escrow and bam, it falls out of escrow 190 00:07:46,410 --> 00:07:49,530 because of something this big. 191 00:07:49,530 --> 00:07:53,580 So it's all about risk prevention with real estate, 192 00:07:53,580 --> 00:07:56,340 and it's about doing the things you gotta do 193 00:07:56,340 --> 00:07:58,560 before you ever list a house. 194 00:07:58,560 --> 00:08:00,090 And that's what I'm focused on. 195 00:08:00,090 --> 00:08:02,340 - It's interesting, what we've seen in our state 196 00:08:02,340 --> 00:08:03,780 of home spending report with Angie 197 00:08:03,780 --> 00:08:07,530 is that homeowners spending more on maintenance now 198 00:08:07,530 --> 00:08:08,760 than they have historically, 199 00:08:08,760 --> 00:08:10,080 which I think is super interesting, 200 00:08:10,080 --> 00:08:11,430 which means they're probably taking care 201 00:08:11,430 --> 00:08:12,450 of some of those little things. 202 00:08:12,450 --> 00:08:15,420 Because I tell people, and I'm sure you do as well, 203 00:08:15,420 --> 00:08:18,060 like when people come into your house looking to buy it, 204 00:08:18,060 --> 00:08:20,520 they're actually looking for reasons not to buy it. 205 00:08:20,520 --> 00:08:22,290 - I really believe the next couple years 206 00:08:22,290 --> 00:08:25,440 we're gonna see, people doing way more remodeling 207 00:08:25,440 --> 00:08:26,730 of their existing houses. 208 00:08:26,730 --> 00:08:28,470 We're gonna see a lot more additions, 209 00:08:28,470 --> 00:08:30,540 we're gonna see a lot more add-ons, 210 00:08:30,540 --> 00:08:32,533 which tells me there's gonna be a lot of people 211 00:08:32,533 --> 00:08:34,110 that are gonna need our help. 212 00:08:34,110 --> 00:08:37,200 - Yeah, exactly, because they think about 213 00:08:37,200 --> 00:08:40,050 that like, "Hey, I'll take that second 214 00:08:40,050 --> 00:08:42,570 and merge that, blend that in with my mortgage, 215 00:08:42,570 --> 00:08:44,190 and all of a sudden my rate's not that bad," 216 00:08:44,190 --> 00:08:46,890 versus totally flipping the mortgage to the higher rate. 217 00:08:46,890 --> 00:08:48,900 You know, for those that are out buying right now, 218 00:08:48,900 --> 00:08:51,540 it just makes thinking a little more long term 219 00:08:51,540 --> 00:08:53,220 because people aren't staying, 220 00:08:53,220 --> 00:08:55,020 they're staying in their houses longer, 221 00:08:55,020 --> 00:08:56,790 you know, so location matters more. 222 00:08:56,790 --> 00:08:59,130 It's like, where are you gonna be in five or 10 years? 223 00:08:59,130 --> 00:09:00,030 So think about that 224 00:09:00,030 --> 00:09:01,740 when you're thinking about that location, 225 00:09:01,740 --> 00:09:05,190 because you can change many things about the house. 226 00:09:05,190 --> 00:09:07,260 Can't change the location without moving. 227 00:09:07,260 --> 00:09:08,670 - Absolutely. Oh, I love that. 228 00:09:08,670 --> 00:09:11,190 Angie, do you mind if I ask you one question? 229 00:09:11,190 --> 00:09:12,030 - Yeah. 230 00:09:12,030 --> 00:09:15,660 - What drove you to start, Angie? 231 00:09:15,660 --> 00:09:17,880 - So I started when I was fresh out of college. 232 00:09:17,880 --> 00:09:21,090 I had done an internship with the guy 233 00:09:21,090 --> 00:09:22,890 that then became my co-founder. 234 00:09:22,890 --> 00:09:25,260 Bill had renovated a house in Indianapolis. 235 00:09:25,260 --> 00:09:28,470 He'd bought like a 1920s house that needed tons of work, 236 00:09:28,470 --> 00:09:30,540 and it was the first house he'd ever bought. 237 00:09:30,540 --> 00:09:32,520 But it turned out there was a little business 238 00:09:32,520 --> 00:09:35,160 in Indianapolis called Unified Neighbors. 239 00:09:35,160 --> 00:09:39,060 And it kept track of who the good contractors were in town. 240 00:09:39,060 --> 00:09:41,430 And he used that and was like, "This is great. 241 00:09:41,430 --> 00:09:43,170 Like, I love owning houses." 242 00:09:43,170 --> 00:09:44,670 And then he moved to Ohio 243 00:09:44,670 --> 00:09:46,923 and bought another diamond in the rough, 244 00:09:48,202 --> 00:09:50,550 and quickly discovered that there was no such thing 245 00:09:50,550 --> 00:09:52,950 as Unified Neighbors there or anywhere. 246 00:09:52,950 --> 00:09:56,908 So he convinced me to join him 247 00:09:56,908 --> 00:09:59,520 and start this business. 248 00:09:59,520 --> 00:10:00,690 Back then when we started, 249 00:10:00,690 --> 00:10:02,400 we were competing against the Yellow Pages. 250 00:10:02,400 --> 00:10:03,600 You're like, you just open 'em up, 251 00:10:03,600 --> 00:10:06,102 and you're like which company's the best? 252 00:10:06,102 --> 00:10:07,111 - Yeah. 253 00:10:07,111 --> 00:10:08,910 - You know, and was all about really being able 254 00:10:08,910 --> 00:10:11,610 to get to that real scoop because in 1995 255 00:10:11,610 --> 00:10:15,000 there was no internet, reviews weren't really a thing. 256 00:10:15,000 --> 00:10:17,760 It was really word of mouth was how you 257 00:10:17,760 --> 00:10:20,121 a lot of times would then have to hear about people. 258 00:10:20,121 --> 00:10:22,860 - And it's incredible to think the impact 259 00:10:22,860 --> 00:10:25,200 you've made all across the nation, 260 00:10:25,200 --> 00:10:30,200 because it's a very risky, difficult-to-understand industry. 261 00:10:31,140 --> 00:10:33,450 And it's an industry where if you're a homeowner 262 00:10:33,450 --> 00:10:34,500 and you don't do the right things, 263 00:10:34,500 --> 00:10:37,050 it's easy to be taken advantage of. 264 00:10:37,050 --> 00:10:39,660 And then the problem is, if you are taken advantage of, 265 00:10:39,660 --> 00:10:40,980 trying to get your money back 266 00:10:40,980 --> 00:10:42,600 or fight with the court systems, 267 00:10:42,600 --> 00:10:44,880 it's very, very close to impossible. 268 00:10:44,880 --> 00:10:48,540 So what I always tell people that the most important thing 269 00:10:48,540 --> 00:10:51,570 you can do is spend the time on the front end. 270 00:10:51,570 --> 00:10:52,800 It's the most important part 271 00:10:52,800 --> 00:10:55,050 because the front end is where you find your team, 272 00:10:55,050 --> 00:10:56,250 it's where you do your interviewing. 273 00:10:56,250 --> 00:10:58,020 That's when you check the credibility. 274 00:10:58,020 --> 00:10:59,730 Because if you make mistakes on the front end, 275 00:10:59,730 --> 00:11:02,490 your entire project is just gonna be a roller coaster 276 00:11:02,490 --> 00:11:04,260 and it gets off very stressful. 277 00:11:04,260 --> 00:11:06,660 - Absolutely. So I couldn't agree with you more. 278 00:11:06,660 --> 00:11:09,030 And I tell people it's like, 279 00:11:09,030 --> 00:11:10,770 because it's emotional purchase, right? 280 00:11:10,770 --> 00:11:12,930 Even when you're remodeling or something like that, 281 00:11:12,930 --> 00:11:14,820 I might not be an expert roofer, 282 00:11:14,820 --> 00:11:17,100 but over the course of my home ownership, 283 00:11:17,100 --> 00:11:19,170 I might replace a couple of roofs, 284 00:11:19,170 --> 00:11:20,880 and I've gotta trust that contractor. 285 00:11:20,880 --> 00:11:23,700 So making sure you get a great contractor, 286 00:11:23,700 --> 00:11:25,113 you're exactly right. 287 00:11:26,371 --> 00:11:29,154 And especially if you're looking at a house 288 00:11:29,154 --> 00:11:32,580 that needs some work, having a contractor that you trust 289 00:11:32,580 --> 00:11:34,650 and you've built some rapport with 290 00:11:34,650 --> 00:11:36,510 to go in and look at it with you 291 00:11:36,510 --> 00:11:39,840 before you buy will also help you avoid some pitfalls, 292 00:11:39,840 --> 00:11:40,673 I would think. 293 00:11:40,673 --> 00:11:42,660 - Yeah, absolutely. 294 00:11:42,660 --> 00:11:46,260 And the biggest mistake is usually hiring the wrong people. 295 00:11:46,260 --> 00:11:49,050 And then once you do, you pay them in advance 296 00:11:49,050 --> 00:11:50,340 and then they take your money. 297 00:11:50,340 --> 00:11:51,173 - That is true. 298 00:11:51,173 --> 00:11:53,730 And it's important to you make sure, 299 00:11:53,730 --> 00:11:55,230 I think you brought it up, like make sure 300 00:11:55,230 --> 00:11:57,660 you're getting several estimates, 301 00:11:57,660 --> 00:11:58,980 checking their credentials, 302 00:11:58,980 --> 00:12:01,380 and then also just getting to know the contractor. 303 00:12:01,380 --> 00:12:04,290 I mean, you've been involved in lots of big projects, 304 00:12:04,290 --> 00:12:07,620 and it's not something that you do overnight. 305 00:12:07,620 --> 00:12:08,670 It's something you might... 306 00:12:08,670 --> 00:12:10,500 You know, I joke around like, 307 00:12:10,500 --> 00:12:12,240 you might be living with your remodeler 308 00:12:12,240 --> 00:12:15,630 for a couple of months while they're doing a major project. 309 00:12:15,630 --> 00:12:18,690 And it's like you've got to have a good rapport with them 310 00:12:18,690 --> 00:12:21,030 in order for that project to go well. 311 00:12:21,030 --> 00:12:23,490 Let's talk about ROI, because I think that is something 312 00:12:23,490 --> 00:12:25,710 that homeowners spend a lot of time talking about it. 313 00:12:25,710 --> 00:12:28,020 You've seen it from the investor perspective 314 00:12:28,020 --> 00:12:30,990 of kind of how important it is to choose the right projects 315 00:12:30,990 --> 00:12:34,020 to do in a house, and which ones you might wanna avoid. 316 00:12:34,020 --> 00:12:36,030 You know, homeowners who are living in their house, 317 00:12:36,030 --> 00:12:38,310 they may not have that same business sense 318 00:12:38,310 --> 00:12:40,350 when it comes to their own home as you have 319 00:12:40,350 --> 00:12:41,970 on the projects that you're doing. 320 00:12:41,970 --> 00:12:46,320 But what types of projects oftentimes 321 00:12:46,320 --> 00:12:48,930 tend to kind of result in the best ROI? 322 00:12:48,930 --> 00:12:51,000 - So actually after buying, fixing and selling 323 00:12:51,000 --> 00:12:52,800 a thousand houses, I've kind of identified 324 00:12:52,800 --> 00:12:54,720 what I feel are the most important things. 325 00:12:54,720 --> 00:12:57,180 So within my company Nestla, 326 00:12:57,180 --> 00:12:59,640 I created something called Nestla Touch. 327 00:12:59,640 --> 00:13:02,760 Touch means anything we've touched on the house. 328 00:13:02,760 --> 00:13:06,867 And the thing is, I think every homeowner needs to do. 329 00:13:06,867 --> 00:13:09,450 And this is important because this is, 330 00:13:09,450 --> 00:13:11,040 I'm not talking about a fixer-upper. 331 00:13:11,040 --> 00:13:14,910 I'm talking about the average am American homeowner 332 00:13:14,910 --> 00:13:17,190 before selling their house, 333 00:13:17,190 --> 00:13:21,510 one, I feel like it's very important, declutter. 334 00:13:21,510 --> 00:13:25,530 Get someone in, take half of the stuff from every room, 335 00:13:25,530 --> 00:13:27,720 put it in a box, label the box. 336 00:13:27,720 --> 00:13:30,087 Go into your closet, take half your cloth- 337 00:13:30,087 --> 00:13:31,890 - I'd say even take more than half. 338 00:13:31,890 --> 00:13:34,140 I'd take three-fourths. (laughs) 339 00:13:34,140 --> 00:13:36,780 - Exactly, your closet, right, all your stuff, 340 00:13:36,780 --> 00:13:40,980 take 75% of the stuff out, make your closet feel bigger. 341 00:13:40,980 --> 00:13:44,310 Go to the front of your house and look at it with your eyes. 342 00:13:44,310 --> 00:13:47,520 You want green grass, you want flowers, 343 00:13:47,520 --> 00:13:48,810 you want painted trim. 344 00:13:48,810 --> 00:13:51,000 You want a new, fresh colored front door. 345 00:13:51,000 --> 00:13:53,850 It's not about spending a fortune before selling your house. 346 00:13:53,850 --> 00:13:56,280 It's about spending a little bit of money 347 00:13:56,280 --> 00:13:59,610 on the right things that'll cause it to sell 348 00:13:59,610 --> 00:14:02,373 just for more money and that much faster. 349 00:14:03,300 --> 00:14:04,800 And I was just talking about the outside, 350 00:14:04,800 --> 00:14:08,160 like I'm talking paint, kitchen, 351 00:14:08,160 --> 00:14:11,610 replacing hardware, even as simple as lights. 352 00:14:11,610 --> 00:14:13,890 I walk into these beautiful homes for sale 353 00:14:13,890 --> 00:14:15,810 and they're using these yellow light bulbs. 354 00:14:15,810 --> 00:14:18,570 So it's the details. You're telling a story. 355 00:14:18,570 --> 00:14:20,580 And in today's market where it's slow 356 00:14:20,580 --> 00:14:23,799 and it's difficult to sell houses, 357 00:14:23,799 --> 00:14:25,800 this is the most important time ever 358 00:14:25,800 --> 00:14:28,230 to do the right prepping and improving 359 00:14:28,230 --> 00:14:30,630 before you ever actually list your house. 360 00:14:30,630 --> 00:14:34,080 Imagine you're a buyer, you're walking into your house, 361 00:14:34,080 --> 00:14:35,130 what would you wanna see? 362 00:14:35,130 --> 00:14:37,140 I mean, I would wanna walk up to a clean porch, 363 00:14:37,140 --> 00:14:41,400 a freshly painted front door, a welcome sign, a cute mat. 364 00:14:41,400 --> 00:14:43,643 You're selling a story. - Right. 365 00:14:43,643 --> 00:14:45,180 If I bought my house during the pandemic, for example, 366 00:14:45,180 --> 00:14:47,460 I took advantage of that super low interest rate. 367 00:14:47,460 --> 00:14:49,320 And I'm trying to figure out what ways 368 00:14:49,320 --> 00:14:53,070 to make my house grow, because I don't wanna move right now, 369 00:14:53,070 --> 00:14:56,670 which I think a lot of homeowners feel like that, 370 00:14:56,670 --> 00:14:58,290 what projects, you know, 371 00:14:58,290 --> 00:15:01,380 what are your top couple of projects you would consider 372 00:15:01,380 --> 00:15:04,500 like making sure that kind of, in updating a home? 373 00:15:04,500 --> 00:15:06,000 Which are the favorites that you go, 374 00:15:06,000 --> 00:15:07,080 you think about first? 375 00:15:07,080 --> 00:15:09,990 - Yeah, that really depends on the goals. 376 00:15:09,990 --> 00:15:11,640 Is it looking for more size 377 00:15:11,640 --> 00:15:13,590 or is it looking for more design? 378 00:15:13,590 --> 00:15:15,390 - So if we think, like, why don't you gimme one of each? 379 00:15:15,390 --> 00:15:16,890 If you're thinking size, where do you go? 380 00:15:16,890 --> 00:15:19,350 And if you're thinking design, where do you head? 381 00:15:19,350 --> 00:15:20,183 - Oh, okay. 382 00:15:20,183 --> 00:15:23,460 So I mean, if I'm thinking what is the best way 383 00:15:23,460 --> 00:15:26,400 for me to get the best look on this house 384 00:15:26,400 --> 00:15:28,200 with the lowest money spent, 385 00:15:28,200 --> 00:15:30,030 if I can just clear my mind really quick, 386 00:15:30,030 --> 00:15:31,530 empty out that house. 387 00:15:31,530 --> 00:15:34,380 First thing I'd go in there is scrape all the ceilings, 388 00:15:34,380 --> 00:15:38,040 replace baseboards, fresh paint everywhere, 389 00:15:38,040 --> 00:15:39,030 white light bulbs. 390 00:15:39,030 --> 00:15:41,640 I'd install canned lights, modern lighting, 391 00:15:41,640 --> 00:15:43,500 modern light fixtures. 392 00:15:43,500 --> 00:15:45,720 I'd repaint or refinish cabinets. 393 00:15:45,720 --> 00:15:48,120 I'd put new hardware on. 394 00:15:48,120 --> 00:15:50,220 I would tile the kitchen backsplash, 395 00:15:50,220 --> 00:15:52,440 'cause it's pretty fast and easy. 396 00:15:52,440 --> 00:15:53,940 Homeowners can do it. 397 00:15:53,940 --> 00:15:56,220 And it's just the little things, 398 00:15:56,220 --> 00:16:00,630 the hardware, the lights, the chandeliers, the paint. 399 00:16:00,630 --> 00:16:02,610 And it makes just such a big difference 400 00:16:02,610 --> 00:16:04,080 in modernizing a space. 401 00:16:04,080 --> 00:16:05,070 - I think you're exactly right. 402 00:16:05,070 --> 00:16:07,530 I mean, one of the things that I hear homeowners 403 00:16:07,530 --> 00:16:09,390 talk about is like, "I wanna remodel my kitchen. 404 00:16:09,390 --> 00:16:11,762 Does that mean I'm spending $50,000?" 405 00:16:11,762 --> 00:16:14,970 And it's like, it's amazing the number of things 406 00:16:14,970 --> 00:16:16,920 you can do in phases, right? 407 00:16:16,920 --> 00:16:19,590 Or some of these smaller things that can give it a new look. 408 00:16:19,590 --> 00:16:22,650 I mean, I tell them, if you can keep the cabinets, 409 00:16:22,650 --> 00:16:23,700 keep the cabinets, 410 00:16:23,700 --> 00:16:25,560 because they'll be the most expensive thing. 411 00:16:25,560 --> 00:16:29,250 And do not change the footprint of the kitchen 412 00:16:29,250 --> 00:16:30,926 because you don't wanna move plumbing and electrical. 413 00:16:30,926 --> 00:16:32,010 - Oh my gosh. - Right? 414 00:16:32,010 --> 00:16:33,960 I gotta tell you a story. 415 00:16:33,960 --> 00:16:36,660 Two years ago, this is a funny store, I'll be quick. 416 00:16:36,660 --> 00:16:40,650 It was on season two of my show "Flipping El Moussas." 417 00:16:40,650 --> 00:16:42,030 We bought this house in a Hawthorne. 418 00:16:42,030 --> 00:16:43,140 It was like a thousand square feet, 419 00:16:43,140 --> 00:16:44,550 tiny little thing. 420 00:16:44,550 --> 00:16:46,620 Last minute, me and Heather are in the kitchen 421 00:16:46,620 --> 00:16:47,453 for the design. 422 00:16:47,453 --> 00:16:48,360 We're like, "You know what, we're gonna move this 423 00:16:48,360 --> 00:16:50,070 one little window from here to here." 424 00:16:50,070 --> 00:16:51,870 We tell the contractor. 425 00:16:51,870 --> 00:16:55,230 Oh boy, next thing we know, 426 00:16:55,230 --> 00:16:59,970 that little window, it ended up delaying us three months 427 00:16:59,970 --> 00:17:03,120 and costing $40,000 428 00:17:03,120 --> 00:17:05,730 because we moved that little window. 429 00:17:05,730 --> 00:17:10,410 They made us retrofit and do all this wild code upgrades. 430 00:17:10,410 --> 00:17:12,330 And if I would've ever known, 431 00:17:12,330 --> 00:17:13,830 I would've left that window. 432 00:17:13,830 --> 00:17:15,720 - One thing I encourage homeowners to think about 433 00:17:15,720 --> 00:17:17,220 is making sure they're giving some cushion 434 00:17:17,220 --> 00:17:18,240 to their budget, right? 435 00:17:18,240 --> 00:17:20,220 Because you hear about these things that happen 436 00:17:20,220 --> 00:17:21,480 that go awry. 437 00:17:21,480 --> 00:17:23,310 You know, make sure you got a good 10%. 438 00:17:23,310 --> 00:17:26,490 Hold back, tell your contractor you have 20,000, 439 00:17:26,490 --> 00:17:28,050 but hold back a few thousand 440 00:17:28,050 --> 00:17:29,610 just so that you're prepared, 441 00:17:29,610 --> 00:17:32,280 because they can't see behind walls. 442 00:17:32,280 --> 00:17:34,890 They don't know the condition of absolutely everything. 443 00:17:34,890 --> 00:17:37,080 And when you start moving some things around, 444 00:17:37,080 --> 00:17:38,520 you can run into those things 445 00:17:38,520 --> 00:17:40,530 that'll eat up all of your fun budget. 446 00:17:40,530 --> 00:17:41,823 - So glad you just said that. 447 00:17:41,823 --> 00:17:44,850 It's very important to pay on a payment schedule. 448 00:17:44,850 --> 00:17:46,470 When I first started flipping houses, 449 00:17:46,470 --> 00:17:51,390 the biggest lesson I've learned is choose the right people 450 00:17:51,390 --> 00:17:53,790 and pay them on a schedule. 451 00:17:53,790 --> 00:17:56,100 - Yeah, yeah. And get everything in writing. 452 00:17:56,100 --> 00:17:57,240 - Yes. 453 00:17:57,240 --> 00:18:00,630 - So one thing you talk about is every house 454 00:18:00,630 --> 00:18:02,170 needs a sizzle feature, you know? 455 00:18:02,170 --> 00:18:03,480 - Yeah. - One thing that kind of 456 00:18:03,480 --> 00:18:06,000 really stands out and makes your house special. 457 00:18:06,000 --> 00:18:07,500 How do you decide what that is? 458 00:18:07,500 --> 00:18:09,450 I mean, is does the house inherently have it? 459 00:18:09,450 --> 00:18:12,000 I mean, like, I love curved archways, 460 00:18:12,000 --> 00:18:14,580 so maybe something like that is that sizzle feature, 461 00:18:14,580 --> 00:18:16,320 but would love to learn more. 462 00:18:16,320 --> 00:18:20,040 - I think every house inherently has it, 463 00:18:20,040 --> 00:18:22,800 and I think every house's sizzle feature 464 00:18:22,800 --> 00:18:25,560 should be the one that the homeowner wants. 465 00:18:25,560 --> 00:18:28,350 So for me, I analyze every house. 466 00:18:28,350 --> 00:18:30,120 I'll look at the inside, I'll look at the outside. 467 00:18:30,120 --> 00:18:32,580 I always like to create sizzle features 468 00:18:32,580 --> 00:18:35,070 in every house for a few different reasons. 469 00:18:35,070 --> 00:18:38,280 One, it gives the owner an opportunity 470 00:18:38,280 --> 00:18:40,200 to show off something cool. 471 00:18:40,200 --> 00:18:41,880 You know, maybe people don't have enough money 472 00:18:41,880 --> 00:18:44,250 to sizzle their entire house, 473 00:18:44,250 --> 00:18:48,000 but you can do one part, like maybe a bar, maybe a fire pit, 474 00:18:48,000 --> 00:18:50,400 but just something that's personal and you're proud of. 475 00:18:50,400 --> 00:18:52,110 - So talk to me about your framework. 476 00:18:52,110 --> 00:18:53,580 It's a four-step framework, right? 477 00:18:53,580 --> 00:18:56,310 The evaluate, emulate, renovate, and duplicate. 478 00:18:56,310 --> 00:18:58,620 Walk me through what that's like 479 00:18:58,620 --> 00:19:01,200 for someone who just owns a house they live in. 480 00:19:01,200 --> 00:19:03,390 How should they be thinking about that framework? 481 00:19:03,390 --> 00:19:05,970 - So before you get started, you need to know 482 00:19:05,970 --> 00:19:07,770 what you're going to do. 483 00:19:07,770 --> 00:19:10,170 So what I like to do is, if I look at a house, 484 00:19:10,170 --> 00:19:13,080 I'm like, okay, that's a 1970s house, 485 00:19:13,080 --> 00:19:15,720 a four bedroom, two bathroom, it needs some love. 486 00:19:15,720 --> 00:19:17,370 The first thing I want to know is, 487 00:19:17,370 --> 00:19:19,830 well, like, how nice should I make this house? 488 00:19:19,830 --> 00:19:22,680 And what do other people make houses look like in this area? 489 00:19:22,680 --> 00:19:27,060 Because I don't want to do a LA Hollywood modern house 490 00:19:27,060 --> 00:19:29,100 in the middle of Ohio, right? - Right. (chuckles) 491 00:19:29,100 --> 00:19:34,100 - So identify your competition. What are they doing? 492 00:19:34,590 --> 00:19:37,380 And then what are they doing that's working? 493 00:19:37,380 --> 00:19:40,470 Find out what that is and then do what they did 494 00:19:40,470 --> 00:19:43,500 and try to do it better by emulating, 495 00:19:43,500 --> 00:19:46,380 which is what they've done, and enhancing it 496 00:19:46,380 --> 00:19:48,930 with a personal touch to improve it. 497 00:19:48,930 --> 00:19:51,420 That way you're always doing things based on 498 00:19:51,420 --> 00:19:53,880 what's already been proven and you're always trying 499 00:19:53,880 --> 00:19:56,441 to improve what's already been proven. 500 00:19:56,441 --> 00:19:58,530 - Right. Right, right. 501 00:19:58,530 --> 00:20:00,425 I like that. 502 00:20:00,425 --> 00:20:02,880 I tell people that they wanna keep up with the Joneses. 503 00:20:02,880 --> 00:20:05,250 They don't wanna kind of exceed the Joneses. 504 00:20:05,250 --> 00:20:07,020 So I think you bring a good point, 505 00:20:07,020 --> 00:20:09,840 like how often, like, homeowners should be thinking 506 00:20:09,840 --> 00:20:11,280 about the market probably more. 507 00:20:11,280 --> 00:20:13,167 I mean, I've lived in my house for 20 years, 508 00:20:13,167 --> 00:20:17,040 so maybe you aren't paying attention 509 00:20:17,040 --> 00:20:18,720 to kind of the real estate market 510 00:20:18,720 --> 00:20:20,070 if you're not in the market. 511 00:20:20,070 --> 00:20:22,740 But you bring up a great point 512 00:20:22,740 --> 00:20:26,430 about how that can actually help you educate you 513 00:20:26,430 --> 00:20:28,110 on what you should be doing in your house, 514 00:20:28,110 --> 00:20:30,413 even if you don't have a move in the horizon. 515 00:20:30,413 --> 00:20:34,260 - 100%, you know, the best way to learn about your house 516 00:20:34,260 --> 00:20:35,670 is to study your neighborhood. 517 00:20:35,670 --> 00:20:38,280 What are the neighbors doing? Are there similar floor plans? 518 00:20:38,280 --> 00:20:42,120 I mean, I've learned so much just by looking at photos. 519 00:20:42,120 --> 00:20:42,990 It's amazing. 520 00:20:42,990 --> 00:20:45,720 Like I've said, "Okay, I wanna do a remodel 521 00:20:45,720 --> 00:20:46,740 of this beautiful house." 522 00:20:46,740 --> 00:20:49,470 I've literally pulled up every house listed 523 00:20:49,470 --> 00:20:52,200 along the coast between five and 20 million 524 00:20:52,200 --> 00:20:55,260 just to get design inspiration. 525 00:20:55,260 --> 00:20:57,480 So you can pull inspiration from anywhere. 526 00:20:57,480 --> 00:20:59,460 You could take a look at a $20 million house, 527 00:20:59,460 --> 00:21:01,830 and put it in a $500,000 house. 528 00:21:01,830 --> 00:21:04,140 - Yeah. - But instead of using hand, 529 00:21:04,140 --> 00:21:07,410 you know, formed clay tile, well you get a porcelain 530 00:21:07,410 --> 00:21:09,480 with a print on it. (chuckles) 531 00:21:09,480 --> 00:21:11,280 - That has a similar feel to it 532 00:21:11,280 --> 00:21:12,930 and warms up the space the same way. 533 00:21:12,930 --> 00:21:15,000 - Yeah, and here's one thing I've actually learned 534 00:21:15,000 --> 00:21:18,180 doing this so long, is you can get 535 00:21:18,180 --> 00:21:20,910 a super high-end designer look 536 00:21:20,910 --> 00:21:24,450 by just choosing the right materials. 537 00:21:24,450 --> 00:21:27,750 Because it's amazing the type of patterns 538 00:21:27,750 --> 00:21:29,940 and stamping they can do on porcelain. 539 00:21:29,940 --> 00:21:31,800 And nobody ever knows the difference. 540 00:21:31,800 --> 00:21:33,660 - You've done so many of these projects. 541 00:21:33,660 --> 00:21:36,270 You can always say like, you wanna invest in quality, 542 00:21:36,270 --> 00:21:38,010 you wanna make sure you're doing everything right. 543 00:21:38,010 --> 00:21:41,760 But sometimes you just wanna go after the trend, right? 544 00:21:41,760 --> 00:21:44,640 Like, "Hey, I just want a little pizazz." 545 00:21:44,640 --> 00:21:49,410 So where would you say like, "Hey, this is an okay spot 546 00:21:49,410 --> 00:21:52,320 to go kind of trendy, maybe less expensive, 547 00:21:52,320 --> 00:21:54,450 but I would never do it 548 00:21:54,450 --> 00:21:55,770 with this kind of a product"? 549 00:21:55,770 --> 00:21:58,200 - We only got one shot at this thing called life. 550 00:21:58,200 --> 00:22:00,600 And I think it's very important to separate 551 00:22:00,600 --> 00:22:02,550 business decisions and personal decisions. 552 00:22:02,550 --> 00:22:06,540 And I feel like a home is very personal. 553 00:22:06,540 --> 00:22:08,610 - It's emotional, yeah. - Here's what I tell people. 554 00:22:08,610 --> 00:22:11,700 If you wanna paint your walls pink and purple 555 00:22:11,700 --> 00:22:13,860 and do gold toilets, go ahead. 556 00:22:13,860 --> 00:22:15,900 Enjoy it. Love it. 557 00:22:15,900 --> 00:22:19,110 Just know when you go to sell your house, 558 00:22:19,110 --> 00:22:20,550 you're gonna have to replace your toilets 559 00:22:20,550 --> 00:22:22,860 and you're gonna have to replace your walls 560 00:22:22,860 --> 00:22:26,220 because you're gonna leave money on the table if you don't. 561 00:22:26,220 --> 00:22:27,540 - I think this is a great point, 562 00:22:27,540 --> 00:22:31,290 and like paint can be one of those inexpensive things, 563 00:22:31,290 --> 00:22:33,000 but you just have to remember to paint it 564 00:22:33,000 --> 00:22:34,350 before you list it. 565 00:22:34,350 --> 00:22:37,440 Because that paint could, 566 00:22:37,440 --> 00:22:39,660 that off-white paint that you end up painting it 567 00:22:39,660 --> 00:22:41,940 could be the least expensive thing you've ever put in 568 00:22:41,940 --> 00:22:44,430 your house but turns out to be the best ROI 569 00:22:44,430 --> 00:22:45,390 you've ever spent. 570 00:22:45,390 --> 00:22:47,280 - Absolutely. Absolutely. 571 00:22:47,280 --> 00:22:49,020 - You know, and people, for most, 572 00:22:49,020 --> 00:22:50,730 their home is their largest investment. 573 00:22:50,730 --> 00:22:53,730 So they wanna be smart, they wanna make good decisions, 574 00:22:53,730 --> 00:22:55,957 and they want to feel like, 575 00:22:55,957 --> 00:22:58,770 "Hey, when I do sell this, I am gonna make some money on it, 576 00:22:58,770 --> 00:23:00,900 and it's gonna turn out to be 577 00:23:00,900 --> 00:23:02,370 a wealth builder for me." 578 00:23:02,370 --> 00:23:05,970 - I love what you just said because it is 100% the truth. 579 00:23:05,970 --> 00:23:09,123 I mean, I believe it's 90% of this country, 580 00:23:10,050 --> 00:23:13,560 the majority of their net worth is in their house. 581 00:23:13,560 --> 00:23:14,700 - Exactly. 582 00:23:14,700 --> 00:23:18,030 So, as we wrap here, what is the one room in a house 583 00:23:18,030 --> 00:23:21,180 that tells you everything you need to know about the owner? 584 00:23:21,180 --> 00:23:23,070 - The entry. (chuckles) 585 00:23:23,070 --> 00:23:23,903 I'd say the entry. 586 00:23:23,903 --> 00:23:26,020 Like you, for example, you come to my house, 587 00:23:27,120 --> 00:23:29,010 you're gonna see a lot of organized shoes 588 00:23:29,010 --> 00:23:29,977 'cause my wife has a rule. 589 00:23:29,977 --> 00:23:31,770 "Hey, no shoes in the house." 590 00:23:31,770 --> 00:23:33,630 - No shoes in that, fair. (laughs) 591 00:23:33,630 --> 00:23:35,760 - Sometimes you go to a house 592 00:23:35,760 --> 00:23:38,970 and, you know, there's stuff everywhere, right? 593 00:23:38,970 --> 00:23:39,960 - Yeah. Yeah, yeah. 594 00:23:39,960 --> 00:23:42,960 - So I think immediately you kind of know 595 00:23:42,960 --> 00:23:44,940 the second you walk in. - Right. 596 00:23:44,940 --> 00:23:47,730 You get that first impression. It's back to the front door. 597 00:23:47,730 --> 00:23:49,230 - Yeah, it's back to the front door. 598 00:23:49,230 --> 00:23:51,660 And a lot of times, it starts at the curb, 599 00:23:51,660 --> 00:23:53,820 you know, based on the landscaping 600 00:23:53,820 --> 00:23:55,290 and as they're peeling paint on the door 601 00:23:55,290 --> 00:23:56,520 and stuff like that. 602 00:23:56,520 --> 00:23:58,620 - This has been so much fun, Tarek. 603 00:23:58,620 --> 00:24:01,890 I've really enjoyed this. Appreciate the conversation. 604 00:24:01,890 --> 00:24:03,180 - Well, this is so fun. 605 00:24:03,180 --> 00:24:05,430 I really am a big fan of what you've done, 606 00:24:05,430 --> 00:24:07,530 and I love the fact that you did 607 00:24:07,530 --> 00:24:11,520 this going door to door based off an idea, 608 00:24:11,520 --> 00:24:14,310 who's someone who had a great experience off of a list. 609 00:24:14,310 --> 00:24:16,121 I mean, I just love these stories. 610 00:24:16,121 --> 00:24:18,630 (upbeat music) - Here's what I am taking away 611 00:24:18,630 --> 00:24:20,370 from my conversation with Tarek. 612 00:24:20,370 --> 00:24:22,590 Your house is personal. You should love it. 613 00:24:22,590 --> 00:24:25,200 It's where you live, so live in your home. 614 00:24:25,200 --> 00:24:27,090 But the day you decide to sell, 615 00:24:27,090 --> 00:24:30,300 it stops being yours and becomes a real asset. 616 00:24:30,300 --> 00:24:32,400 And the homeowners that come out ahead 617 00:24:32,400 --> 00:24:34,470 are the ones that understand the difference. 618 00:24:34,470 --> 00:24:36,570 They spend their money on the front end, 619 00:24:36,570 --> 00:24:39,180 on upgrades that aren't dramatic 620 00:24:39,180 --> 00:24:43,530 but deliver the best ROI; the basics but done really well. 621 00:24:43,530 --> 00:24:46,440 And in today's market, where seven out of 10 deals 622 00:24:46,440 --> 00:24:49,290 fall apart at the inspection phase, 623 00:24:49,290 --> 00:24:51,900 these homeowners do a pre-inspection 624 00:24:51,900 --> 00:24:53,730 and fix the items upfront. 625 00:24:53,730 --> 00:24:56,340 It's the smartest money they'll spend all year. 626 00:24:56,340 --> 00:24:57,750 Thanks for watching. 627 00:24:57,750 --> 00:25:00,660 And if this episode sparks some interest, 628 00:25:00,660 --> 00:25:04,740 feel free to follow along or subscribe or leave a review. 629 00:25:04,740 --> 00:25:07,260 And if you know someone getting ready to sell their house, 630 00:25:07,260 --> 00:25:10,080 this might be a great episode to pass along. 631 00:25:10,080 --> 00:25:12,570 This is Angie Hicks with "Own It," 632 00:25:12,570 --> 00:25:13,970 and we'll see you next time.