Pinball rally in Masuria. For 6 thousand PLN you will learn the secrets of business
One might get the impression that everyone who has sold two apartments in their life now records instructional videos and organizes courses for aspiring flippers. Malicious people joke that organizing training brings more money than all this housing sales. The richness of the offer should not come as a surprise: in Poland, whoever has free funds enters into real estate.
In April, the Left prepared a bill that is intended to put an end to the activities of flippers, i.e. entrepreneurs who buy apartments, quickly renovate them and sell them, or do not renovate them, and then sell them at a higher price. The magic tool would be the cadastral tax on the third apartment. MEPs have not yet dealt with the proposal, but we must be aware that it will not be an easy discussion. Quite a large group of MPs bought several apartments (information about this is provided by annual asset declarations) and by supporting the Left's idea they would have a hit on their income.
How many flippers operate in Poland?
Supporters of the free market also do not like the idea of higher taxation. Ryszard Petru spoke up for flippers and warned Left politicians that if they restrict their real estate business, flippers will take their suitcases with money and go to buy apartments abroad. A loss for the Polish economy.
It is not known how many flippers operate in Poland – because it is difficult to define them clearly. Record holders sell several dozen apartments a year, but there is also an army of people who sell one or sometimes two apartments a year. For some, this is their core business, others do it “after hours”.
From a study prepared by Dr. Adam Czerniak, research director at Polityka Insight and head of the Department of Institutional and Political Economics of the Warsaw School of Economics, shows that at the beginning of 2017, the share of flips, i.e. premises bought at a low price for the purpose of quick sale, in the total number of apartments sold permanently exceeded 3%. ., and in the third quarter of 2019 it reached a record level of 5.9%. The COVID-19 pandemic brought about a temporary slowdown in growth – in the second quarter of 2020, the share of this type of transactions dropped to 4.6%. – but after the pandemic, flippers quickly returned to action and the indicator returned to a record level of 5.9%.
Whoever has money goes into real estate
Information from intermediaries from all over Poland, quoted by “Rzeczpospolita” in April, shows that participation pinball machines in apartment sales transactions it ranges from 10 to 20 percent. The spread of estimates is therefore large. Since we do not know how many of them there are, it is also difficult to determine the impact of flippers on real estate prices. Critics call them speculators who buy the more attractive properties, and since they buy for cash, they are a more desirable category of customers for sellers. This is how they raise prices.
On the other hand, flippers renovate often very damaged apartments and put them on the market. The quality of the renovation is a separate issue – in this business, the time from purchase to sale counts. The renovation is supposed to be cheap, but effective.
How much can you earn from flipping? One of the most recognizable people in this industry declares that graduates of his courses earned an average of PLN 50,000 on each flip in the last year. Daniel Siwiec claims that he has 200 flips on his account and earns an average of PLN 45,000 from each one.
Become a pinball player in 10 hours
The group of people willing to “enter into real estate” is constantly growing, as evidenced by the number of courses conducted by leading flippers. The uninitiated are not aware of it, but these are not some humble entrepreneurs who sit behind a desk and supervise renovations from time to time. These are ambitious businessmen who know perfectly well that today you need to be a brand in your own right and be able to sell yourself – and in the next step, sell your knowledge. They run social media channels, record instructional videos, run closed groups for beginners and organize training sessions that can attract over 300 participants.
How much does such training cost? To see the industry-famous Wojciech Orzechowski live in May, you had to pay PLN 2,470. Those who were inquisitive could purchase an individual 30-minute consultation for PLN 500. A two-day land investment training at a SPA in Podkarpacie costs PLN 4,918.77. The speakers promise to discuss “99 elements necessary when purchasing land.” For a 10-hour intermediate course, which will take place in September, you will have to pay PLN 7,645.
“By learning the exact mechanisms for rectifying entries in land and mortgage registers, the ability to derive the most complicated legal states, case law, court practice, bailiffs and bankruptcy proceedings, participants will acquire the ability to trade in real estate, which for most is
Online courses are cheaper: recordings lasting several hours can be purchased for PLN 99. the choice is so wide that you may get the impression that everyone who has managed to sell two apartments is now teaching others how to do it successfully.
Flipping on the lakes
The most famous flippers/entrepreneurs/celebrities build communities around them that meet during various conferences, trainings and joint trips. The “Mazury Midel Camp” starts next weekend, and several well-known people in the industry will be present. The “face” of the trip is 40-year-old Kuba Midel: the founder of a language school with branches all over the country, and today he has over 100 apartments for rent. The training will also be conducted by the already mentioned Wojciech Orzechowski, whom the organizer presents on the website as “a mentor for over 2,300 investors from all over Poland.” We learn that in 2022–2023 it has launched over 140 flip investments and is implementing 7 development projects worth over PLN 220 million. Among the guests is Robert Burneika, a Lithuanian bodybuilder and MMA freak fighter. He is the owner of a company offering dietary supplements.
A four-day stay (“a unique opportunity to establish new contacts, exchange experiences and spend a few days actively outdoors,” we read in the description) in the premium package costs PLN 5,197, and in the VIP option – almost PLN 8.5 thousand. zloty. Accommodation in houses for several people, so networking, which is now so praised in business, will be possible until the morning.
The left rails against pinball players
“Rally of villains” – thunders Political Criticism. It is known that the authors' hearts are definitely on the left, so the tone of the statement is not surprising: “Even bad people sometimes need to relax in similar company, so it should not surprise anyone that flippers also have their campus in a charming environment,” wrote Piotr Wójcik in a comment on the event. To illustrate his attitude towards pinball machines, he recalled the statement of Wojciech Orzechowski, who said that for him an apartment is not a right. “If you want to sit and do nothing, and look at TV, and watch movies, and drink beer, and watch matches, and be unemployed, and receive social benefits, and not develop, just say give, give, give, then as best as possible. Unfortunately, the majority of society will say this.” – Orzechowski pontificated.
Treating all people who cannot afford an apartment worth at least PLN 13,000. PLN per meter (these are the conditions in the largest cities) is an unfair generalization. However, until the economic situation changes or MPs do not pass regulations affecting real estate wholesalers, the number of people for whom buying and selling quickly is a way of doing business will increase.
And the courses too.
