Episode 231: Tarek El Moussa – HGTV Star Shares Essential Real Estate Trading Secrets
Published on April 21, 2025, by Audioboom Studios
In this compelling episode of Trading Secrets, host Jason Tartick sits down with renowned real estate investor, HGTV personality, and author Tarek El Moussa. Together, they delve deep into the intricacies of real estate flipping, negotiation tactics, and navigating the ever-evolving financial landscape. Below is a detailed summary of their insightful conversation.
1. Introduction and Background ([00:14] - [01:25])
Jason Tartick warmly welcomes Tarek El Moussa, highlighting his impressive achievements:
- Hosted Flip or Flop from 2013 to 2022.
- Starred in HGTV’s Flipping 101 and Flipping El Moussa.
- Successfully flipped over 1,000 properties and sold more than 1,000 homes.
- Owns multiple apartment buildings and a self-storage facility.
- Manages a personal rental portfolio exceeding 200 units and operates a wholesale real estate company and a production company.
Jason emphasizes Tarek’s multifaceted expertise and entrepreneurial spirit, setting the stage for an in-depth discussion.
2. Current Real Estate Market and Flipping Strategies ([01:25] - [05:03])
Jason points out that 2024 was one of the lowest home sales years in decades. He references a previous statement by Tarek where he mentioned learning more about flipping in recent years than in the past two decades combined.
Tarek responds by simplifying the primary barrier to real estate investment: money. He introduces the concept of wholesaling real estate as an accessible entry point for aspiring investors.
Notable Quote:
Tarek El Moussa ([02:22]): "99.9% of people think they can't be a real estate investor because they don't have money. But it doesn't take money..."
3. Wholesaling Real Estate Explained ([02:14] - [03:45])
Tarek breaks down the wholesaling process:
- Cold Calling Realtors: Initiate contact with realtors in targeted areas (e.g., Tampa, Florida).
- Securing Contracts: Lock a property under contract at a lower price (e.g., $200,000).
- Assigning the Contract: Transfer the contract to a fix-and-flip investor for a higher price (e.g., $250,000).
- Earning Fees: Profit from the difference (e.g., $50,000) without any initial investment or risk.
This method benefits all parties: the seller receives a quick cash sale, the wholesaler gains a hefty fee, and the investor can proceed with the flip for profit.
Notable Quote:
Tarek El Moussa ([02:36]): "When I say 'and or assignee', it means I can assign the contract to a third party. In this situation, I earn a wholesale fee of $50,000 with zero investment and risk."
4. Overcoming Barriers and System Challenges ([04:44] - [05:25])
Tarek expresses frustration with traditional advice such as going back to school or taking second jobs, labeling them as "complete scams". He argues that these paths don't address the core issues and discourage entrepreneurial efforts essential for sustaining various industries.
He underscores the importance of making money versus merely being educated, highlighting a systemic disconnect.
Notable Quote:
Tarek El Moussa ([04:44]): "Making money is different than being educated. You can be really good at making money without education, or highly educated but not good at making money."
5. Personal Experiences and Lessons Learned ([07:33] - [09:24])
Tarek shares a recent experience where a hurricane struck Tampa and St. Pete, impacting his newly launched company, Tampa Venture Properties. Demonstrating his effective wholesaling technique, he secured four properties within 30 minutes of making phone calls.
This story illustrates the power of persistence and proactive outreach in generating substantial profits quickly.
Notable Quote:
Tarek El Moussa ([08:47]): "Within 30 minutes, I generated four properties and created over half a million dollars in profits with almost no work."
6. Negotiation Tactics in Real Estate ([09:04] - [21:35])
Jason probes into how Tarek negotiates deals without initial capital. Tarek explains that deposits are often delivered within five days, allowing time to secure buyers. He outlines a negotiation script:
- Initial Contact: Send a text to the listing agent expressing interest and offering to buy the property.
- Engage in Conversation: Ask about the property's time on the market, previous offers, and reasons for not selling.
- Present an Offer: Make a reasonable cash offer based on identified issues and potential profits.
Tarek emphasizes the importance of asking targeted questions to understand the seller’s motivation and leverage that information to negotiate effectively.
Notable Quote:
Tarek El Moussa ([10:11]): "If you practice every question in this script, you're going to make millions of dollars."
7. Importance of Hands-On Learning ([25:37] - [31:26])
Tarek advocates for self-education and practical experience over traditional academic routes. He shares his journey of being a self-taught investor, emphasizing action over passive learning.
He criticizes the conventional education system for not teaching real-world money-making skills, advocating for learning directly from successful individuals through books, podcasts, and social media.
Notable Quote:
Tarek El Moussa ([25:37]): "I'm a doer. Stop thinking, stop reading, stop listening. Start doing."
8. Balancing Media Presence with Real Estate Business ([31:26] - [33:19])
Jason inquires about how Tarek balances his HGTV career with his real estate ventures. Tarek responds by stating that while his media presence enhances his branding, his primary focus remains on real estate profitability. He maintains that if TV commitments hinder his business, he prioritizes real estate.
This balance ensures that his media roles complement rather than detract from his core business objectives.
Notable Quote:
Tarek El Moussa ([33:03]): "I could leave TV at any time. If I'm not getting paid what I need from TV, it's time to leave."
9. Advice for Home Buyers ([35:44] - [42:21])
Tarek offers critical advice for homebuyers dealing with flipped properties:
- Verify Permits: Ensure all renovations have proper permits to avoid future legal issues.
- Quality of Work: Assess the workmanship by inspecting details like tile alignment and cabinet sturdiness.
- Warranties: Confirm if there are warranties on the renovations to safeguard against defects.
- Home Inspection: Conduct thorough inspections and possibly hire a contractor to uncover hidden problems.
He shares a personal incident where water damage in a newly purchased home revealed poor construction practices, underscoring the importance of vigilance.
Notable Quote:
Tarek El Moussa ([38:46]): "We bought a brand new house, demoed the closet, and found water damage and mold under the flooring. It cost us nearly half a million dollars to rectify."
10. Book Promotion and Key Insights ([42:47] - [44:21])
Tarek promotes his book, "Flip Youp Life," describing it as a blueprint for achieving unparalleled success in real estate and beyond. He emphasizes that the book encapsulates his life’s journey, lessons learned, and actionable strategies that readers can emulate.
He challenges listeners to read the book to transform their mindset and approach, highlighting its potential to change lives.
Notable Quote:
Tarek El Moussa ([42:47]): "You only buy this book if you want to know what it really takes to become as successful as humanly possible."
11. Final Takeaways and Closing Thoughts ([45:47] - [49:29])
In his concluding remarks, Tarek distills real estate investing into a single, actionable metric: contacts and conversations. He stresses the importance of consistent outreach, advising listeners to engage with at least 30 people daily for 90 days to secure profitable deals.
He shares another success story where disciplined contact led to significant commissions, reinforcing his strategy’s efficacy.
Notable Quote:
Tarek El Moussa ([47:09]): "Talk to 30 people a day for 90 days, I guarantee you'll make more money than you ever made in your life."
Additional Highlights and Personal Stories
Throughout the episode, Tarek shares various personal anecdotes illustrating his resilience and strategic thinking:
-
Great Recession Experience ([22:42] - [25:37]): Tarek discusses buying a house during the market downturn, holding onto it despite initial losses, and eventually reaping substantial profits due to long-term growth and inflation.
-
Hands-On Roles ([31:06] - [31:26]): He highlights his diverse roles in the real estate sector, from cold calling and door knocking to remodeling and leasing, showcasing a comprehensive understanding of the industry.
Notable Quote:
Tarek El Moussa ([33:14]): "I've been a cold caller, a door knocker, a contractor, and more. I've done every single aspect of this business from the ground up."
Concluding Remarks
The episode wraps up with a vibrant recap and tease of upcoming shows and ventures, including Tarek’s new HGTV season and Jason’s various business projects. Both hosts express enthusiasm for future collaborations and encourage listeners to engage with their content across multiple platforms.
The dynamic exchange showcases not only Tarek’s expertise but also his passion and commitment to empowering others in the real estate market.
Final Thoughts
This episode of Trading Secrets with Tarek El Moussa is a treasure trove of actionable insights and personal wisdom. Tarek’s transparent discussion about overcoming barriers, practical negotiation tactics, and the importance of consistent action provides invaluable guidance for both novice and seasoned real estate enthusiasts. His emphasis on self-education and hands-on learning reinforces the notion that success in real estate is attainable with the right mindset and strategies.
If you’re looking to enhance your real estate flipping skills or navigate the complexities of the housing market, this episode is an essential listen.
Find Tarek El Moussa and his ventures:
- Website: TemCapital Co
- Social Media: @tarik_el_moussa on Instagram, TikTok, and Facebook
- Book: Flip Youp Life
Stay tuned for more insightful episodes of Trading Secrets as Jason Tartick continues to unlock the vault of financial and career strategies.