You’re looking at the home of one of the
top real estate brokers in America This place was a total dump. I can’t believe how much money I spent to renovate this place. So when a guy who’s made millions
on real estate renovates his own home You’d think it would be easy right? Wrong. This was the worst mistake I’ve ever made in real estate. We’ll get to that big mistake that cost him $700,000 and find out exactly how much he poured into this place in a minute, First… Okay so let’s go inside and
meet the star of CNBC’s “Listing Impossible” super broker Aaron Kirman. Aaron! Hey there. Hi what why does it look like you’re in prison here? Well we like prison looking houses because that means people don’t want to go inside of them I thought Beverly Hills was safe do you really need a these bars? You know… we like safe homes, yes. It makes us feel very secure. So we’re super excited to see where the guy who sold $6 billion dollars worth of real estate lives. You’re about to meet my two roommates. These are guard dogs. These are guard guards they will attack they will bite so you better be careful. What are their names? That’s Jax and that’s Lucy. Come on in welcome. A-mazing… check this out! So I wanted a really big open space to just kind of hang out. Show me some of the stuff that you changed. Yes so you had a really terrible ugly
clunky marble fireplace. There were three glass doors with ugly shutters. One of the things that I absolutely hated about this house was the low ceilings. How did you give the feeling of them being higher now? So we did it four ways… the most important was we did these glass doors and they’re floor-to-ceiling okay. and it really makes the ceiling so much higher. I added this mid-century wood wall here yeah. And we did, again, we did floor to
ceiling and we did vertical lines and it really gives it a great optical illusion and another thing we did was this fireplace… we’ve brought the fireplace to the floor so we lowered it. And that makes the ceiling feel higher? Yeah. And then I imagine that all the skylights you put in help too… Skylights help. We had a really small square kitchen that went here. You just blew out the walls and
then put in this gorgeous kitchen? Yes. Yeah. This is where I don’t cook but
other people do. This is awesome. And the vent actually raises… so that we didn’t have to do any kind of vent over here as well. One of the challenges actually with
remodeling is you get stuck with certain structural issues. The engineer was like, “you have to keep these posts.” So what do you do with it… you turn them into a bar! You actually turn it into a champagne trough. It’s like it’s floating and it’s
made to be right here. I love this we are gonna hear the exact costs of the renovation and how much you paid for the house, but first… let’s go see what’s outside? This area is beautiful, what did this look like before? So when I bought this house there was an ugly kidney-shaped pool that looked like the kidney was about to die. It took up most of the space so there was no yard and there was no jacuzzi. oh and there was these hideous furniture that looked like your grandma’s… this pool is probably $100,000 pool it’s a it’s a floating edge pool so if you see there’s no lines. We brought in all this mature landscaping… How come? Because I didn’t want to see my neighbors behind me so we spent, just in landscaping alone $110,000. Holy Sh**! For me and for most buyers privacy is the most important part of any given home How many square feet is this place? 3,400 square feet. And how many bedrooms and bathrooms? 3 bedrooms 4 baths And this is my bedroom one of my favorite spots of the house The dogs are the real masters of the house. Of course they’re on they lay on top of everything. I kind of liked it cuz it felt like a little ‘sleazy Motel-y’ but actually it’s a very expensive bed. You were going for “sleazy motel chic?” I was going for sleazy motel… you always want your bedroom to be a little kinky and a little fun along the way… Oh my god, I don’t know what he’s talking about, but I like the dogs. Hey by the way this piece, super important the artist is from Ghana and this is
actually her panty hose. – what? And she built this piece with panty hose. Did she wear them before she put them up here? I hope not because i just touched it. What else is in the master suite? So you have a closet… I love the bathroom I love the tub and this window that makes it even bigger. this place is amazing. But this is actually where my nightmare began… When I bought the house I didn’t check the permits and I started a construction
project. And once I started it… the city came to me and said: this room, half of the back bedroom was illegal and I need to take it away. So the somebody who owned the house prior to you put an illegal extension on? That is correct. And then you got caught holding the bag ? That is correct. Aaron says the city stopped construction and he had to remove the illegal extension. So all of a sudden the house you bought is shrinking… Yeah, they asked me to take away something like 600 square feet of a 3,100 square foot house. It took months to come up with a whole new plan the city would approve… construction went on for a year… and it all cost him an absolute fortune. It was a $700,000 mistake. How much does it cost to get permits from the city to see what the deal is on a house? You might want to sit on the couch for this one… because the answer is it’s free. I could go online, I could have searched permits and it would have been pretty much zero dollars. I made a devastatingly stupid mistake. All right so the moment we’ve been waiting for: How much did you pay for the house? I paid $3 million for the house. And how much did you put into it, all these renovations? $1,300,000 So you’re in for $4.3 million. Correct. How much do you think you could sell it for today? $4,500,000. So you actually make money. You would think except that you have to incorporate closing costs which are around 6%. So minus another $270,000 Correct So that means you’re losing… $70,000. Whoo. (silence) Thanks Ray! This has been a great shoot, really enjoyed it. So what does that mean for you? It means that if I was to sell my house
today I would do lose money, but I’m not and so at a certain point we just wait and either the market it’s gonna catch up to the price that I’m actually into it for… I can lease it, or I can live in it and enjoy it which I am doing right now. What do you think you could rent this place for right now? $25,000. A month? Yes. Wow. Is there an important takeaway that people can understand from your story? Yeah the takeaway would be: Always pull permits BEFORE you buy a
house, do your due diligence, and if you are going to remodel a house make sure you correctly calculate the cost of a remodel… Catch Aaron in an all new “Listing
Impossible” Wednesdays at 10 p.m. on CNBC… and we’re gonna leave you with one more
thing about Aaron’s dog Jax: Oh funny story about the dog, the dog was also supposed to be a Labradoodle. A labradoodle? uh-huh. A little short for a
labradoodle Uh well it ended up not being a
labradoodle and he ended up getting long and funky with a weird body and a big awkward head so obviously he’s a mix and not the Labradoodle but he’s a very sweet boy… you got the bait and switch? I got the bait and switch this was the
very expensive mutt version of a Labradoodle.

43 thoughts on “THIS HOME RENO GOES WAY OVER BUDGET | Secret Lives Of The Super Rich

  1. The original pool was not at all "ugly." Aaron has "millennial" (i.e., dubious) taste in some things. Plus his typical "nowadays" tendency to "spin" things so that weak-minded people will agree with his particular aesthetic.

  2. Picture is bedroom, horrible especially when he mentioned what is was made from. Pool furniture awesome. His bowlegged stand, hot!

  3. Skylight in kitchen is nice but itโ€™s in the wrong place. Itโ€™s right over the island leaving no place for lights. Island will be dark at night.

  4. I like the backyard and pool better in the before picture. The rooms look kind of cold. I like modern but I don't really think this was Modern at it's best.

  5. From what I've seen of this guy on his show he makes fun of other peoples houses and furniture all day, it doesn't surprise me one bit that karma bit back lol poor guy but still he should be nicer to his clients.

  6. Honestly it wasn't bad before. Different people have different tastes. Think of how many people he could have helped with that $1,300,000 he spent on renovations? I think it's sad when there are so many people living in poverty in the world and this guy spends his money being picky about how his already multimillion dollar house looks lol I would definitely use my money different than him if I had that wealth.

    Lucy is my kind of roommate.. PRIVACY!! For that price, I don't want to see/hear/smell or think on the existence of neighbors!
    Hey Jax

  8. Very very nice MR ๐Ÿ‘๐Ÿพ๐Ÿ‘๐Ÿพ๐Ÿ‘จ๐Ÿฝโ€๐Ÿฆฑ๐Ÿบ๐ŸŒน๐Ÿบ๐ŸŒน๐Ÿบ๐ŸŒน๐Ÿบ๐ŸŒน๐Ÿบ๐ŸŒน๐Ÿบ๐ŸŒน๐Ÿบ๐ŸŒน๐Ÿบ๐ŸŒน๐Ÿบ๐ŸŒน๐Ÿ†๐Ÿฅ‡๐Ÿฅ‡

  9. It seems like he made a classic first time homeowner/renovations error based on location as well as his initial purchase price. 8 foot ceilings makes everything else look out of place. The black support posts added to open up the space in order to make it into a larger open floor plan enhances the low ceilings effect further. Heโ€™ll have to live in it a while to recoup. The high rental is possibly based on a supply and demand in the area.

  10. This house is bland and boring. It doesnโ€™t look like anyone actually lives there, it is so sterile and empty.

    Considering he is one of the best agents in LA, I am unimpressed and actually bored by this place.

  11. To me if you got the money and your happy, you didnt lose anything.. especially if you work as hard as he did to get where he is.

  12. He's one of those typical Rich guys that likes to throw his money around the 1.3 million dollar remodeling is cool the old pool tile work but those infinity-edge pools are the big saying as well as those Fleetwood Infinity doors window doors are the big thing in LA right now

  13. I made a similar mistake on a fixer upper and I loss $50k. You're not alone. It's hard to come out on top with a fixer upper.

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