Drew and Jonathan Scott, hosts of the HGTV show “Property Brothers,” attained wealth and fame by flipping houses and helping others do the same. But their real estate investment advice belies that dramatic success: “Just think, slow and steady.”
“Every city has the commercials for the ‘Get rich quick’ and ‘Come learn how to make your millions in real estate,’” Drew Scott told Yahoo Finance Editor-in-Chief Andy Serwer.
“There's so much misinformation out there, or it's just sort of hard sales tactics. A lot of times that's not the best opportunity for you,” he adds.
“It is important for people to understand this is a huge thing,” says Jonathan Scott, Drew’s twin brother. “Take the time to make sure you have the right partners, the right financial institution, the right lawyer, everybody around you in order to set yourself up for success.
If potential investors want to start small, they can use an online home rental platform, Jonathan Scott added.
“Airbnb is a great opportunity for a lot of people,” he says.
Homebuilding last month leapt to its highest rate in 12 years, newly released construction data says. On Thursday, Airbnb said that it plans to go public next year, having generated more than $1 billion in revenue in the second quarter of 2019.
Drew and Jonathan Scott made the comments during a conversation that aired in an episode of Yahoo Finance’s “Influencers with Andy Serwer,” a weekly interview series with leaders in business, politics, and entertainment.
Born in Vancouver, they came to prominence fixing up homes in HGTV reality series like “Property Brothers” and “Brother vs. Brother.” Each week, 18 million people watch them in 160 countries; another 10 million follow them on social media. They’ve capitalized with a line of home furnishings and a digital home-design service.
Caution is especially important for real estate investors who expect the venture to support them in old age, Jonathan Scott said.
“A lot of people are using their real estate investment as their retirement plan,” he says. “Maybe pensions are not going to be what they are when they go to retire.”
Andy Serwer is editor-in-chief of Yahoo Finance. Follow him on Twitter: @serwer.