Drew and Jonathan Scott of HGTV’s “Backed by the Bros” Discuss Real Estate Challenges and Opportunities

In a recent interview with Quartz as part of their “What’s Next for…?” video series, Drew and Jonathan Scott of HGTV’s new series “Backed by the Bros” shared some insights on the current state of the real estate industry and how they are helping people navigate through challenging times.

The Scott brothers discussed the impact of rising interest rates, which are now above 7%, on the work they are doing and the real estate market as a whole. They acknowledged the difficulties that high rates pose for homeowners looking to refinance or pull equity out of their homes, but also highlighted the opportunities that still exist for savvy investors.

Jonathan Scott emphasized the importance of being cautious with investments in a high-interest rate environment, while Drew Scott shared stories of individuals who had over-leveraged themselves in real estate and found themselves in financial trouble as a result. This served as the inspiration for their new show, “Backed by the Bros,” where they help people who have gotten in over their heads in real estate investments.

One solution the brothers suggested for combating the housing crisis and creating additional income streams is converting underutilized spaces like garages into rental units. Jonathan Scott stated that converting ADUs (auxiliary dwelling units) can be a practical way to address the housing shortage in major cities and provide homeowners with extra income.

When asked about common mistakes they see in real estate investing, Drew Scott pointed out the importance of having a solid plan before jumping into a project. He shared an example of a homeowner who purchased appliances and cabinets before even having a house to put them in, resulting in a suboptimal rental property. Jonathan Scott also cautioned against homeowners trying to act as their own general contractors without prior experience, as it can lead to project delays and cost overruns.

Overall, the Scott brothers’ interview with Quartz shed light on the challenges and opportunities in the current real estate market and showcased their expertise in helping individuals navigate through complex real estate transactions. Their new show, “Backed by the Bros,” aims to inspire viewers to pursue real estate investments while being mindful of the potential pitfalls along the way. Viewers can tune in to HGTV on June 5th at 9:00 PM to catch the premiere of this exciting new series.