8 Question Interview with Girls Who Flip

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Often, I like to think about taking the plunge from homeowner to real estate mogul (yes, for real), going one step beyond buying for the purpose of living in it and building wealth, one property at a time.

I know, I know, it’s probably still quite difficult to consider real estate investing as a viable option #2008financialcrisis and yet, despite its ups and serious downs, it’s still proven to be one of the more consistent ways to build a nest egg outside of your corporately matched 401K.  The truth is that a lot of us are already real estate investors in one way or another. Whether we own our own home for forever and then sell it or we rent out the back house or we’re buying property specifically to sell it, A.K.A flipping, we’re all investing in real estate.

Well then, what about that last method? When you say flipping, you’re bound to get as many raised eyebrows as interest.   If the thought of flipping makes you start to sweat behind the knees, I don’t blame you. Of the three options I listed, it was for sure the riskiest.

Now, I’m not talking about some get-rich-quick scheme. First of all, if you’re playing by the rules, there’s nothing really quick about property flipping.  Secondly, if you’re keeping your eventual new homeowner in mind and not your pocketbook there’s nothing scheme-y about it either.

I’m lucky to have two great role models who have braved the great unknown and built a successful business around flipping properties, for good. I sat down with them to find out why they took the road less traveled where they want to go with it next.

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Describe the evolution of Girls Who Flip?  How and why did you get started?

It started with a discussion, well with many discussions, about the desire to flip properties.  We would see great opportunities weekly if not daily.  We started with one small flip and that led to another and so on. Making the decision to actually do it is what got us started.  I guess we had to get out of our own way to make it happen. We needed to get our feet wet before bringing in other partners, dig into our MBA in investing. We wanted to help other women learn and understand how to make money in this investing style.  Life is less stressful with a few bucks in the bank, so we want to share that with others.

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How do you decide where and what to invest in?  What is the formula or guide that you live by?

As one of us is a full-time Realtor, we are constantly researching, finding out what areas are up-and-coming, talking with other people in the industry, networking. It is not a scientific formula by any stretch, but a quick analysis is a spread of 100K between your purchase price and your resale price. Although SFR are typically higher priced sales, they do not suck up the profit in paying out HOA fees.  That can add up if you hold a property for 4 months.

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What is the hardest part about flipping a property?  What is the most rewarding part about the same?  

Having patience! Even after financial analysis and budgeting, there are obvious – and some not so obvious – costs associated with a project like this as well as holding costs which can go on longer than projected. Opening a wall may reveal an issue that needs fixing or you oversee something in the design that needs to be accounted for. You have to respect there are normal delays to be encountered that are part of the process. You need to trust the process. Lack of capital is our biggest barrier today.  We are working on this piece now.  

Most rewarding hands down is making something better, quality or aesthetically.  It is so gratifying when you see the next Buyer beaming with pride.  Enjoying this keeps it human as it can and never should be all about the money.

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What was the biggest risk in diving-in to start Girls Who Flip and why did you go for it anyway?  What advice do you have for would-be investors sitting on the fence?    

There are so many ways to invest in real estate and flipping is something we’ve had more recent experience in and decided to name it and give it a vision.

We have the good fortune of being connected with professional contractors and designers that we’ve worked with in the past that are not only experts in remodel architecture and design but work efficiently and understand the differences in a flip versus other remodel type projects. Having a good team is everything in being successful in this business.  Delays and poor choices (i.e. – overspending) can quickly dry up your profit and/or can put you in a negative situation. Be prepared for delays, make sure you have some padding in your budget for unexpected costs that may arise or potential delays in getting your property back on the market. Market early your resale, even prior to the completion.  Try and find your Buyer early as that will put you in a solid position to lock in your profits even before the project is completed.

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Tell us about your last project on the Long Beach Atlantic corridor?  What was the result?  

Long Beach is a fantastic community that is still on the fringe of becoming a hot Southern California city. There is so much opportunity with its urban environment and pedestrian lifestyle coupled with beach living and close proximity to greater Los Angeles and Orange County. Values have remained steady and real estate is still affordable to be acquired, improved, and put back on the market for others to enjoy.

The Atlantic project was attractive as it recently converted from co-op to condo, which makes it more valuable. We also purchased it as a Short Sale so our purchase price was below market. This was a hidden gem with plenty of upside. While the project resulted in 30% return, it was especially fun due to the vibrancy of the people living in the building, who truly love where they reside and are committed to improving their experience through community.

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What’s next for Girls Who Flip?  Where do you see Girls Who Flip in five years?

We are currently identifying our next set of investments and mapping out how we will start to bring others into future projects. In the next five years we’d like to develop a model for real estate investing where anyone can participate in a project to learn, grow and profit. We are especially motivated to teach women – moms who are looking to reignite a career after raising children, single mothers who need an additional source of income, and those who want to learn sales, finance and project management skills.

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As kids, what did you guys want to be when you grew-up?

Shelley: I had aspirations to get into medicine as a young person but ultimately gave in to my love of technology, which was ultimately a better choice for my inquisitive nature and need for variety. Solving problems and coming up with systems to support them is my strongest skill set. I firmly believe loving what you do is a delicate balance of skill, interest, lifestyle alignment and luck!

Ann: I think I just focused on how to best live in a small ranch house with a family of 8! Survival and every “man” for himself mentality! I don’t know that I ever knew what I wanted to do with my life until I was in my 30’s.  I always knew I loved people (midwest bred so that can be expected) and that anything was possible in life.  One of my favorite sayings is “you can be or do whatever you want in life, you just have to figure out how to get there”.

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Where do you guys personally find inspiration?

Shelley: A few years ago I started cycling and running and find inspiration hits me in those moments when I am pushing my body, free from thought and completely in the moment. It’s from that place that clarity and desire are born.

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Ann: I have a hard time turning off the many ideas I have going in my head (ask anyone who knows me), so in order to focus or flesh out one of those ideas I need to take time away.  Running at the beach or surfing completely fills me to the point of spiritual inspiration.  I guess they are my “church”. Oh, and my 11-year old dog Alice inspires me.  She teaches me how we should live in the world.

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Favorite Things

Shelley:

Health:  My fiance and I got into juicing last year and it’s become a strong competitor to coffee every morning, which I never thought I’d say!

Travel:  Kauai, Hawaii is my “heaven on Earth” and a place that I’ve been fortunate to have visited twice so far and earmarked for retirement.

Technology:  I am fascinated with the recent developments in space exploration and energy conservation, and love the innovation coming out of people like Elon Musk.

Entrepreneurship:  My lifestyle never leaves me bored. The similarities run strong between my two loves: ON ITS AXIS, my strategy consulting firm focused on helping entrepreneurs and startups build great products and Girls Who Flip, a real estate investment firm supporting women to create investments through development.

Ann:  

Mind:  “The Philosophical Investor: Transforming Wisdom into Wealth” by Gary Carmell.  Gary is a client of mine, self made, and really quite brilliant.

Health:  I am in love with Epson Salt Bath w/Lavender on Sunday mornings.

Travel:  My own backyard; running at Crystal Cove State Beach @dusk or watching the whales head back up the coast from Mexico.

Luxury:  Reading the entire Wall Street Journal cover to cover on a plane ride.

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The World’s First Contemporary Art Exhibition For Dogs

The world’s first art exhibition for dogs opened last week in London called ‘Play More’. Curated by artist Dominic Wilcox (the same artist who created the ‘Reverse Listening Device’), created four installations including ‘Dinnertime Dreams’, a 10-foot-wide dog bowl with 1,000 brown playpen balls for dogs to jump and play in. The exhibition created the #PlayMore campaign to encourage pet owners to spend more time playing with their pets.

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Disneyland in B&W

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If I stuck around and worked at the Jungle Cruise at Disneyland for more than one summer and a couple of breaks, I probably would have been trained to operate the Enchanted Tiki Room next. While the former is probably the most fun place to work at in the Magic Kingdom when you’re a teenager–with chances to ad lib, wear shorts during the hot weather, and pack a real gun–the latter is my longtime favorite attraction. The Hawaiian-esque music is right up there with Martin Denny’s “Quiet Forest” as far as the Exotica subculture goes, and the hosting birds’ foreign accents could have flown right out of Hogan’s Heroes. What a perfectly weird time capsule that looks great in B&W.

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When I go back to Disneyland, as I did on Saturday,  I not only recall the time I worked there (which was a lot of fun because I was surrounded by a lot of other college students on their breaks) but my childhood growing up behind the Orange Curtain. When I was a kid, my family went to the Magic Kingdom on special occasions and my brother and I could even see the 9:30 fireworks from our bedroom window. We moved during fourth grade, but when did the baboons move off the rock formation leading to the African veldt?

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But even though I recall A, B, C, D, and E Tickets as well as I do the Jungle Cruise spiel (which has been burned into my brain forever after reciting it three times an hour, six hours a day, six days a week), I’m no purist who gets hung up on the good ol’ days. It’s pretty lame that women weren’t allowed to be skippers on the Jungle Cruise and the ride itself sends dated messages about exploring, cultural imperialism, and the White Man’s Burden. Hm, does the much newer Indiana Jones ride send an updated message? I enjoy it anyway and my eight-year-old daughter went on it for the first time.

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I’m actually okay with original attractions being tweaked over the years. Pirates of the Caribbean might have parts based on the Johnny Depp movies, but the action trilogy was based on the ride to begin with! How meta is that? Thankfully, the Haunted Mansion is modeled after Tim Burton’s gothtastic Nightmare Before Christmas animated feature instead of the Eddie Murphy vehicle… Both are dark and in constant motion, but I managed to capture some strobe lights on the ghost ship and our Doom Buggy took a pit stop by the ghoul with the disappearing head when unruly spirits were acting up.

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There are layers of reflection and mixing up at Splash Mountain, too, where the animatronic animals from America Sings! have been reincarnated in the bipolar musical/thrill ride with the setting of Song of the South. And how interesting for that particular ride to be based on a feature that Disney has pretty much disowned for its idyllic portrayal of plantation life after the Civil War. Frankly, it looks downright chilling in black and white and this is one of the most fun yet harsh rides for so many reasons.

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When I was a kid, it was a big deal when yeti were added to the Matterhorn. Now there are new, improved creatures on the Swiss Alp that move around and yelp in stereo. Pretty cool, and Eloise was brave enough to ride on the bobsled ride for the first time, but still geographically incorrect since everyone knows the Abominable Snowman lives in the Himalayas. There was a time when the Skyway to Tomorrowland went right through the peak, but we visitors are better off walking across the park and (1) we are less likely to get spit on and (2) it makes for a better picture.

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It’s a Small World was famously made as a UNICEF fundraiser for the New York World’s Fair in 1964 and today it is one of the park’s most popular rides as well as one of its most famously haunted ones. The music and movements mysteriously and randomly start up after closing hours. Dolls change places or vanish. Timeless Mary Blair originals are flanked by Saccharine mutations from Precious Moments…  The only thing creepier than ghosts is ghosts of children.

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Space Mountain has been converted into Hyperspace Mountain, and I’m glad that the outside hasn’t been adjusted to look more like something from the Star Wars movies. The 1977 addition’s aesthetic was already and similarly ahead of its time mixing midcentury angles and spires and the low center of gravity of a Trans Am. So much cooler looking than the Star Tours architecture, which used to be Journey Thru Inner Space but that’s another story that entails the excellent, dark voice acting of Paul Frees, real-life villainy of Monsanto, and one of the park’s great makeout spots of lore.

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I’ve never been to Bryce Canyon National Park but I know the profile of Thunder Mountain like the back of my hand. I didn’t realize it was supposed to be a ghost train rolling through a deserted mining town, though. No wonder it’s so fun to ride in the dark–which my family and I did three times between 11:45 and midnight, closing time. Who knows when we’ll return?

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Don’t be afraid of sun, crowds, or stashing away money for family excursions, and follow Imprint on Twitter, Instagram, and Facebook, too.

 

8 Question Interview with Michael Chiang

I met Michael Chiang back in 1999 at the height of the dot com bubble. We conducted our second year, field study capstone project together in a small group. Grad school section-mates, we were eager and ambitious to discover where we could make a mark. It was always clear to me that Michael would be extremely successful based upon his pure intellect, innate curiosity about industry/culture, leadership qualities, and strategic mindset.

So, Michael is now SVP, General Manager of ScreenJunkies at DEFY Media, the top digital producer and programmer for 13-34 year olds, and the largest owner of YouTube channels and leading media brands across the comedy, lifestyle and gaming verticals. As GM of ScreenJunkies, Michael has overseen the channel from its inception, building it into the leading digital destination for fans of film and television, with over 5.3 million subscribers and 1.2 billion lifetime views. Under his management, DEFY launched ScreenJunkies Plus, the brand’s premium SVOD service which debuted in November 2015. The service features daily programming from personalities ranging from geek luminaries such as Kevin Smith and Jason Mewes to emerging digital stars such as “How It Should Have Ended” and “Jeremy Jahns.”

Prior to his role for Screen Junkies, Michael served as SVP, Strategy & Operations for DEFY, overseeing its publishing operations, as well as guiding content and platform strategy for company owned brands such as SMOSH, Awe Me, and Clevver. Prior to Defy Media, Michael spent ten years at Activision-Blizzard in brand management and franchise strategy for franchises such as Call of Duty, Guitar Hero and Spider-Man and initiating new IP such as the successful, multi-platform franchise Skylanders. Defy Media has just been nominated for an Emmy in the brand new Outstanding Short Form Variety Series category for its “Honest Trailers,” further validating online video and short form digital content.

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Talk a bit about your career trajectory to date. How did you become involved at Break Media and DEFY Media?
It’s been a bit of a random trek and I’ve been fortunate to just follow my interests into great roles at great companies. I started as Chemical Engineer formulating hair spray in a lab for Procter & Gamble, then went back to business school determined to create a career I was passionate about. That led me to ten years at Activision-Blizzard marketing huge brands like Tony Hawk’s Pro Skater, Spider-Man, Guitar Hero and the like. When I started, the company had about 300 employees and when I left we were over ten times larger. During my transition, I sought a return to a much smaller company to recapture more of that feeling that my actions could make a difference, and joined Break Media in 2011 [which later merged with Alloy Media to form Defy Media] just as the world of online video was about to collide with the traditional linear world of TV and film. Looking back, I’ve been blessed to be at companies in industries with massive growth and change…it certainly keeps things exciting.

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Describe the environment that led to the merger in 2013.
Not to oversimplify, but in 2013 the online video world was quickly shifting to organizations that 1. Owned their own IP, 2. Had the necessary infrastructure to publish content to multiple platforms (YouTube, Facebook, AOL, Daily Motion, etc…), and 3. Had the scale via owned channels, sites, and apps to successfully launch new shows and IP. With Break Media, the company was quite strong with infrastructure and websites, but Alloy Media had some huge consumer brands like Smosh (sketch comedy for the 8-15 y.o. set) and Clevver (the largest online Entertainment News organization) that formed a formidable combination when joined with Break’s eponymous website and ScreenJunkies and AweMe brands. As a combined entity, we now publish over 70 shows weekly that attract over 65 million subscribers and 100 million followers on social media, and we publish on YT, Facebook, Verizon Go90, Amazon, and Sky TV amongst others and last year launched our own standalone subscription video on-demand service, ScreenJunkies Plus.

What are some of the notable milestones/initiatives/wins that represent the growth and evolution of DEFY Media?
I think Defy has been one of the companies that best exemplifies the “new paradigm” of video…we are built on talent that has very direct, very personal, daily relationships with their fans, but unlike many solo creators (who are great!), the company can investment spend to scale our IP, and to build on top of the YouTube, Facebook, Vine, or Twitter fanbase to bigger, more profitable things. Smosh started over ten years ago as two teenage kids making videos in their bedrooms. Last year Smosh released a movie that reached the top of the charts on iTunes, pranked each other with the likes of Jennifer Lawrence and Tom Hiddleston, and now boasts an on-air cast of fifteen working across multiple channels, a website, apps, mobile games, and more to come.

Anthony Padilla and Ian Hecox seen at the Los Angeles Premiere of AwesomenessTV and Defy Media's "SMOSH: THE MOVIE" held at Westwood Village Theatre on Wednesday, July 22, 2015, in Los Angeles. (Photo by Eric Charbonneau/Invision for AwesomenessTV/AP Images)
Anthony Padilla and Ian Hecox seen at the Los Angeles Premiere of AwesomenessTV and Defy Media’s “SMOSH: THE MOVIE” held at Westwood Village Theatre on Wednesday, July 22, 2015, in Los Angeles. (Photo by Eric Charbonneau/Invision for AwesomenessTV/AP Images)

There are lots of other examples that I see every day that online video is “legitimizing”…last week the Emmy nominations were announced, and our very own “Honest Trailers” series was nominated. A few years ago, [series creator] Andy Signore and I wondered if any of the film creators we were mocking ever watched our content. This February, Ryan Reynolds voiced himself in our Honest Trailer for Deadpool which resulted in over 15 million views on YouTube and Facebook alone. And the Russo brothers admitted that they challenged their writers’ room to “Honest Trailer-Proof” the logic in Captain America Winter Soldier. I am incredibly excited for what the future will bring next!

What are the opportunities and challenges you’ve experienced targeting the millennial generation?
The biggest opportunity in my opinion has been the massive value attached to authentic communication between creators and their audience. Beauty vloggers like Michelle Phan and Bethany Mota are succeeding because they’re real people, showing real flaws and real personality…and they are displacing the traditional aesthetically perfect models in the hearts and minds of teenage girls because there’s something genuine that we can grasp onto. This is game changer in how brands and IP are built and with the role social platforms play in massively accelerating fame and reach, there’s never been a better time to create IP, but the challenge then is how do you (or can you) build traditional businesses on top of talent/relationships that are so very personal? When are you selling out? When you hire an editor? When you take a brand deal? If you get on a TV show? It’s a slippery slope, and if you lose that authentic relationship with your audience, what’s left?

How would you describe your current role as General Manager of ScreenJunkies, and what is your typical day like?
Wow, it really varies from day-to-day…but ultimately it’s about balancing the long-term question of “where are we going and how do we get there?” with the things (good and bad) that are thrown at us every day. Our long-term goal is for ScreenJunkies to be to Film & TV what ESPN is to sports…it’s hugely aspirational, but we can see that there’s a real opportunity there just from the incredibly dedicated fanbase that we’ve already built. Right now, ScreenJunkies encompasses a YouTube channel where we publish three shows a week and a pay subscription service called ScreenJunkies Plus where we publish about 20 shows a week with such luminaries as Kevin Smith and Doug Benson, much of the content live and interactive with our fans. We distribute content through Amazon, Sky TV, AOL, Yahoo, and on our own apps on iOS, Android, Apple TV, and ScreenJunkies.com, so it’s a complicated operation keeping it all going and launching new shows every single month.
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So the day-to-day can be anything from pulling off three days of live programming from San Diego Comic Con, to figuring out where to distribute our content next, to finding new talent to develop shows with, to building relationships with studios and celebrities to pull off “break the internet” (sorry!) type stunts. But sometimes it’s as mundane as talking about what kind of emails to send out to increase our customer retention by 1% or speculating on how many T-shirts we can sell.

What are some of the major landscape trends you are seeing across digital video content, SVOD, entertainment, channels/platforms, and advertising?
There are tectonic plates shifting in the media landscape right now…consumption is shifting massively towards “digital,” yet ad dollars have been slow to follow, but this imbalance must correct itself eventually and all the players are scrambling to position themselves to benefit. We’re seeing digital-natives launching channels on linear services (VICE), linear services launching direct-to-viewer subscription services (CBS All-Access), pay-as-you-will funding (Patreon & Kickstarter), SVOD direct (via apps) and SVOD through distribution (Amazon Prime Add-On Subscriptions). The experimentation will continue and I think it’s unclear what consumers will ultimately support.

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What are some of your own favorite digital media to consume (for pure entertainment and leisure)?
I read a lot of vaguely sci-fi books (on a kindle, so it counts), and listen to podcasts on my commute (our very own “Movie Fights”, “Keepin’ it 1600”, and “Planet Money” all on my subscriptions list). When it comes to video, I think “Game of Thrones” is the only show that’s appointment viewing for me, but I just caught up on “The Wire” (I know, I know) and kind of between things right now.

Where do you personally find inspiration?
Two answers here… a lot of my inspiration these days comes from seeing my children (4 and 6) discover things for the first time, whether that be something brand new to me or something that I get to experience again through the prism of youth. I’d say I was pretty jaded when it came to games from having been in the industry for so long, but playing Mario Kart with my kids is absolutely amazing and opened my eyes again to how powerful a communal experience gaming can be. And, seeing how intently they watch Toy Unboxing videos on YouTube encouraged me to try to understand the phenomena rather than poo-poo it. My other source of inspiration is actually conversing with fans of ScreenJunkies and seeing how they react to videos we make or new initiatives. I really do believe that we’re serving a purpose so seeing how our brand and content “lands” for people is a constant source of curiosity and inspiration.