this is a special edition of "nightline." i want that house. >> tonight, mission impossible. it might not look like a dream home, but one man's trash is another man's -- well fixer upper. tonight, meet the gun-toting agent who sees opportunity in homes like these. and why may be you should too. house whisperer. the staging savant who claims she can boost the sale price of a home by 20% with her own personal makeover. how she's helped some of hollywood's hottest stars cash in big and how her secrets can work for you. >> that's it. >> the man who can sell anything. fredrik eklund is the ultimate salesman and he is sharing his

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good evening. thank you for joining us. i'm rebecca jarvis. tonight, you are going to meet a real estate agent who carries a firearm with him to work. that's becau he's no ordinary agent. these are no ordinary houses he's selling. they are crammed to the gills with trash filled and sometimes illegal squatters. who buys these kinds of properties and should they be something for you to consider? here's abc's gloria riveria. >> reporter: in the market for a mansion but don't want to pay a premium? you might want to look in jacksonville's exclusive gated community pablo bay. >> this is nice. fountains, well-kept grounds. this is a nice community. >> reporter: inside there is a house for sale that will take your breath away. but not in a good way. >> wow. this is crazy. >> reporter: in severe disrepair, seemingly unlivable. >> what's your name?

>> reporter: seemingly unsellable. >> garage sale gone bad. >> reporter: it is a garage sale gone epically bad. >> reporter: unless you are a real estate agent todd arnold. what do you see it as. >> opportunity. like you see here, you have to get rid of all of this. >> reporter: you have to get rid of all of this stuff but it is also the filth. >> reporter: where most see trash, todd sees treasure. he finds distressed homes in danger of foreclosure. prices it low and tries to sell it fast. it is called short sale. >> the opportunity for me because i believe the house is only worth what someone is willing to pay. >> reporter: todd's job is to convince the mom of three this nightmare of a house could be her family's dream home. what are you here to see? >> we are here to look at this house because it's a short sale. and a good price for this neighborhood. >> reporter: there's a catch, right? >> it's not very clean. >> reporter: jen's first impression -- >> what is that?

>> smoke and animals. >> smoke and what. >> smokers. >> reporter: i expect jen to high tail it out of here but she seems to be seeing the potential. >> i guess i'm an optimist anne and like a challenge. >> you have a challenge here. off challenge. >> i mean, really, though, it would come down to the price. this could be a lot worse. >> reporter: looks pretty bad. >> definitely need a new toilet seat. >> reporter: yeah. >> what's in here? ♪ oh my god. look at this. nasty. >> reporter: if these homeowners don't take their belongings with them jen could be stuck with all of that clean up. do you think that is dog pee? >> i think that is dog pee. >> reporter: todd thinks he can convince jen to buy it for the bargain price of $315,000. that is 40% below the market value. short selling distressed houses

is a big business that's happening across the country. if palo alto this three-bedroom home is selling for $1.8 million. barbara corcoran is a real estate mogul and host on abc's "shark tank." >> yes, i am a big mouth. pipe down little man. >> reporter: her take on jen's home. >> if i was writing an ad on this house i'd say buyer beware. >> reporter: but she does see the investment potential. >> it is always worth it to buy a hoarder house, here's why, you've get a 20 to 30% discount on the house and all you have to do is get rid of the stuff. >> reple jen decides on that house, todd takes us on a tour of his inventory, his business is booming. >> this is jacksonville but the worst side of jacksonville. >> reporter: and can be dangerous. you feel like you need to carry a gun? >> absolutely. it is dangerous business. >> reporter: todd is not sure what is waiting on the inside. >> people could be living in this place that don't really belong there. i like to honk my horn to let

anyone that is there to know i'm here. good practice knock on the windows, peek in to see if i am going to surprise anyone. >> reporter: i have a hard time imagining how this bombed out abody could be a sale. >> we like to call it broom swept clean. you run a broom across and doesn't run across anything. >> reporter: the next home looks decent from the front but the backyard is now a junk yard. the inside is packed to the gills. homeowner tommy thompson said he and his wife became overwhelmed by their own collections. why didn't you get rid of this stuff? >> you would be surprised what we have gotten rid of. >> reporter: if he can sell it fast his family will avoid foreclosure. todd reports this home has

multiple offers with a contract pending. >> the good bad, ugly, they all need a buyer. i am helping buyer and sellers. >> reporter: back at pablo bay, it seems jen was able to see through the zoo inside. >> it as a formal dining room and eating area. >> reporter: i missed that where was the dining room. >> the birds. >> reporter: oh, i missed that experts say buyers should do >> there is a wild card when you gate house. you can't get to the basement to see what the plumbing and boiler is like. you can't see what the view is like because you can't get to the window. so there is guess work. >> reporter: jen is ready to make a decision. you know all the work it will bring. are you still thinking of putting in an offer? >> yes. >> reporter: yeah? >> i would do it. >> reporter: you are not easily daunted. but jen may not have been fast enough. tonight todd reports that home received multiple offers and went over the asking price.

no shame in the highest price from your end. >> i'm happy to sell it at any price. 10,000 or 300,000. as long as it is closed it is money. if they don't close no money. >> reporter: gloria rivera in jacksonville florida. the money that heavyweights are spending to turn a lackluster listing in to a spectacular sale. this is my body of proof that i can fight psoriatic arthritis from the inside out... with humira. humira works by targeting and helping to block a specific source of inflammation that contributes to both joint and skin symptoms. it's proven to help relieve pain, stop further joint damage and clear skin in many adults. doctors have been prescribing humira for nearly 10 years. >>humira can lower your ability to fight infections, including tuberculosis. serious, sometimes fatal infections and cancers including lymphoma have happened, as have blood, liver and nervous system problems,

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in today's hotly competitive real estate market, it takes more than a good cleaning to get

top dollar for your home. across america, staging has become big business. with celebrities even reaching out for help. tonight, meet the woman with the midas touch. who can make any place look like a million bucks. when hollywood's hottest stars from halle berry to brad pitt to scarlett johansson want to sell their homes, they turn to this woman -- celebrity home stager meridith baer. >> that's it. i don't think i have ever met a home i couldn't make prettier. >> reporter: before christina aguilera decided to part with these swank l.a. digs and matthew perry put his sprawling mansion on the market they summited meredith for a makeover. >> do they have as many problems as the average person's home when it comes to trying to sell them? i think their homes are like anybody's. sometimes you can be a great

actor and not have great taste. >> bad taste, too. stars are like us. >> they have stacks of unread mail like us toys all over the whole thing. i remember we did halle berry's home at one point and you see her pajamas, all of these things. you go oh, my god, these are halle berry's pajama a's. >> reporter: dirty laundry aside, there are reasons so many she celebs call on meredith how much more will the homeowner get for the sale price bringing you in. >> 20% more. we just did a house down the street from where i live and it sold for a million over asking. >> because it was staged? are. >> yes. >> reporter: what are you charging for this? >> anywhere from 5,000 to $200,000. >> reporter: efron smith has been working with her for 20 years. >> she's the go-to when you are looking to stage a home and you want to make the extra

significant dollar you reach out to meredith. >> reporter: these the house whisperer. >> she is the house whisperer. >> reporter: he brought her in to style a $17 million mansion in the palisades. >> the best thing about staging you are not focusing on the imperfections. >> the chipped paint, uneven floors. >> recessed lights aren't in correctly or things that aren't straight. >> reporter: for a sneak peek we headed to the hollywood hills home of grace, the star of '70s show to see a transformation with his real estate agents. a lot of celebrities have lived here. >> megan from "will and grace." she sold it to scott barnes her makeup artist and he sold it to jessie met calf. >> "desperate housewives". >> reporter: a lot of pedigree but they needed help.

what did it look like in the beginning? >> bachelor pad. it needed warmth and style. just needed a little help. >> reporter: he was ready to sell but his $1.6 million two bed, two bath home had been languishing on the market for four months. >> we brought in a good sized sofa regardless of the fact this is a rather small space. to show to make it feel bigger actually the mirror gives more depth to the room. and to reflect the green. and we started with the white furniture and we started to bring in the color with the rug. we brought the color through with the chairs. picked up the green. gave it a little theme with some accessories. >> reporter: bachelor pad be gone. >> yes. >> reporter: in the master bedroom, a major transformation. wow, this is a very different after than the before. >> right. we do this sort of pretend curtain because as see there's no curtain rod.

by taking the curtain to the top it makes the ceiling look taller. >> reporter: meredith's staging traits led to a big day. >> this house sold at the first showing for six figures over asking. >> reporter: that's huge. meredith's makeovers begin here in this 80,000 square foot warehouse in downtown l.a. 175 skraftsmen movers and designers here choose from endless aisles and shelves of furniture and accessories. they have their own woodworking shop upholstery departmentment and on-site florist and 8,000 piece pieces of art. once the selections are made team meredith loads up one of their 13 trucks and heads back to the latest empty canvas. that sprawling seven-bedroom, ten-bath, $17 million mansion in the pacific palisades. 15 minutes later. this is it?

>> this is it. it is welcoming, elegant and comfortable. >> reporter: how can you create meredith's midas touch in your home without breaking the bank? >> people need to keep it simple. i personally believe that walls should be white. >> reporter: her advice, hold off on renovations and invest in a fresh coat of white paint what do you want to do in a master bedroom? >> you want to feel like a five star hotel. so yummy you want to put your toothbrush and clothes in the closet and move in. crisp white bedding. >> you put a comfortable under the sheets to look plump and yummy. crisp white sheets. >> reporter: invest in fluffy white towels. >> roll them up and load the shelves if there is any surface that doesn't look great, add towels. >> reporter: finally add a cook book to the kitchen. >> i pay tourn a recipe that looks yummy and leave it open

hint hint. you can start to cook as soon as you check out the house. >> reporter: the whole idea is making someone feel this is their home. >> this is home. >> reporter: add these touches to your home and you never know. it might be so inviting you'll never want to leave. just ask scarlett johansson. >> she was going to sell it and saw what we did and she said why am i selling this house? >> reporter: next the celebrity real estate agent who can sell anything. he didn't know anyone when came to america, and yet he built a multimillion-dollar real estate empire. now he's sharing the secrets of his success. >> announcer: this special edition of "nightline" is brought to you by macy's.

excellent. researching a hunch, and making a decision. time for a change of menu. research and invest with e*trade's browser trading. e*trade.

♪ celebrity real estate agent fredrik eklund can sell anything and we really mean anything. he's leveraged his charismatic charm in to a multimillion-dollar real estate empire but it's actually been a long road to his success. tonight, he's sharing his secrets to fame and fortune. >> lots of lights lots of sunlight. >> reporter: spending the day with fredrik eklund -- >> sold! >> reporter: it's no surprise he's one of the country's most famous real estate brokers. >> push a button -- >> reporter: his combination of charm. >> open the deerns get fresh air. >> reporter: and sell sell sell. >> double steam oven double

regular oven. >> reporter: even a toilet. >> say you are tired in the middle of the night -- >> reporter: has put him in the high stakes world of real estate. >> i think i'm getting aroused. let's talk price. >> reporter: it also made him a reality star. >> going to be an interesting year. >> reporter: as the high kicking, high-rolling power broker on bravo's "million dollar listing new york." off camera his business has exploded. how much more successful are you? >> it basically tripled but never know if it comes from the show or not. >> reporter: they sold $1.1 billion of real estate last year making him the number one broker in new york. >> this is a box of the glass hanging over the highway with all of this water. >> reporter: like this one in downtown manhattan. it may not look like much now but this will one day turn in to a trophy apartment. as the exclusive brokers they will make $110 million on just

this building. >> it seems like a lot of money, and of course it is but once again 2 1/2 years of work and we didn't get paid until the whole building closes. >> reporter: and it's made him a rich man. you have a place in here right? >> yes, i bought this apartment a few floors below. >> reporter: what did your apartment cost? >> i never talk about my own prices. it's -- you know a few million. >> reporter: fredrik enjoys the fruits of his labor. his main mode of transportation a chauffeur-driven range rover. >> it is a luxury but also necessary because i'm with clients all day long and take them around. >> reporter: fredrik insists he's like the rest of us. >> i came here with nothing. i didn't know anything about new york. i had never done a real estate deal in my life. >> reporter: he was born in sweden and moved here knowing no one when he was just 25 years old. >> my first apartment was $550,000 and that was a big

price point for me. >> reporter: before he made it big in real estate he starred in a gay porn movie, a fact he's always been open about. >> it's not something i'm proud of but i am not ashamed of. i was worried i would meet someone i would be in love with would say huh-uh. thank god i met derek who doesn't care. >> reporter: he doesn't care? >> he loves me so -- derek is derek kaplan, artist and now fredrik's husband. they tied the knot in season two of the show they are now planning on starting a family. >> i'd like us to take the next step. >> we're going to have a baby. i have always just known i would have a daughter area her name will be willa russia it without be reality tv without drama and fredrik creates plenty of that. >> don't be a stupid child. give me the check. >> reporter: if you could take anything back that you have done

over the course of -- of all of the seasons. >> there's only one thing. it's not nice. it's really weird that i did that. but it was the highest rated episode in the history of the franchise i believe. >> reporter: for fredrik the man and moment have met, and there's no better way to celebrate that than with his signature move. >> you are getting better. i can tell. >> i have been practicing. >> reporter: still working on that high kick. thank you for tuning in to abc news. tune in to hey, ray... oh, boy. what? well, your mother and i have reached a decision. it's the end of an era. oh, well, at least it was amicable. no! we're selling the old car. yeah. it's just the car. wait a minute. you're selling the valiant? that's right. we're cleaning it out. this bathing suit was in the trunk. it's yours. heh heh. remember how cute you looked in that, ray?

yeah. thanks. i've been looking for this. still good. hello, old friend. what's that? i think i can tell you this now, ma. this is what's known as fake i.d. raymond, this isn't even you. see, ma, all week long i was 17-year-old ray barone but saturday nights i was 43-year-old achmed abdula-kakahn. ohh... i'm very disappointed in you. i was a holy man. what's going on? oh, they want to sell the valiant. i lovehat car. you know what i love? the $800 offer i got for it. hey, maybe we'll taket. oh, ray, come on. what? we're thinking of getting a second car. yeah. a new minivan, not a 2 valiant. y didn't you tell me you were interested? you cabuy the car. well, we couldn't asthem to pay $800, frank.