hi, everyone, welcome to "on the money." flipping house. do's, don't's, and why it might not be a bad thing. super spending to get to the super bowl. but you don't have to pay crazy money to get to the big game. help wanted. why there's a shortage of workers in one crucial industry. how to keep credit card costs down and pay off your debt. and the next revolution in food. no soil, no sunlight, but plenty of green in urban farming. "on the money" starts right now. >> announcer: this is "on the money." your money. your life. your future. now, becky quick. we begin with house flipping, when investors buy a fixer upper, make improvements, and try to quickly resell to make a

it was a booming business until the financial crisis. now, believe it or not, flipping is back, and it's this week's cover story, as diana olick reports. >> reporter: last june, real estate agent dana rice was deep in the throes of modelling this 1938 home in bethesda, maryland. she bought it for $600,000, intending to flip it for a heavy profit. >> absolutely not as easy as it looks. >> reporter: four months and $400,000 in construction costs later, she put the house on the market in october for $1.469 million. >> in this particular area, for this particular house, i'm very confident, because i feel as though the product we delivered, we really sweated the details on it, and i'm already getting great response from people who are looking at fixtures, colors, textures, and things like that. and it's not what they see in a general renovation flip. >> reporter: flipping is coming back with a vengeance, despi

fewer distressed properties for investors to buy on the cheap. getting in costs more today. but the potential profit is bigger. flipped homes, which are defined as buying and selling a moment in the same 12-month period, made up just over 6% of home sales last year, up from just over 5% in 2015. the average return on investment is also rising thanks to very tight supply in the housing market, which is pushing home prices higher, faster. and rising prices are key. today's homebuyers are already cash strapped and don't want any additional renovation costs when they move in. that means they're willing to pay a premium for a turnkey property. this family was the first to arrive at rice's open house. >> i think for us, having somebody else do all the work is great. there are a lot of houses around here that are old and ready to turn over or need an update. >> reporter: after two months on the market, unfortunately the house did not sell. so wright decided to rent it out, which

is pretty easy and very lucrative. that's her advice to other flippers. always have a contingency plan. becky? >> diana, thanks. again, diana olick. according to real estate website trulia, flipping houses is become more popular. ralph, why is flipping back? >> prices are on the rise. price increases in 2016 were the quickest in about three or four years. and why do rising prices entice flippers? it gives them a buffer. if the flip doesn't go according to plan, we made a little bit up in equity in the house. >> is flipping different now than before the financial crisis, or is this the same old story? >> this is the most important question, right? when we see flipping reach ten-year highs, economists like us start to worry a little bit. is the housing market flipping out again? we

we think more flips are actual value added improvements that investors are making to the house rather than speculative flips which is someone buying and sitting on a home waiting for the prices to rise. >> if you look around the country, las vegas is probably seeing the most flipping activity. why is las vegas seeing that type of activity and what other markets are really starting to see this coming back up? >> las vegas leads the country in flips. the share of flips that actually had work done to them, that is near all-time highs. prices are starting to rise again in vegas, pretty strongly, about 7, 8, 9, 10% year over year gains. that's just giving that much more buffer and that much more opportunity for flippers to come out ahead. other areas where we're seeing flips on the rise include detroit, which was somewhat of a surprise. detroit has been the poster child for blight and

neglect. we're starting to see opportunities for flips even in places that have been down and out like detroit. >> a lot of times on television we see flipping projects and they tend to be luxury homes. is this a luxury business, or can starter homes be flipped too? >> most of the inventory is in this upper, premium tier, as we call it. we think there's opportunities across all spectrums. but because inventory of starter and tradeup homes has dropped the most, we don't think there's a lot of activity going on there. >> ralph, we look at this as like a potential pot of gold, and people get really excited when they see numbers where you buy a house for $500,000, invest $100,000, and sell it for over $1 million. but there are people who really got stuck in the financial crisis when they were flipping homes. even the story that diana was telling us, the woman put the house on the market for $1.4 million and didn't find any buyers in two months. what are the risks here, and what tips or warnings would you tell people before they g

>> flipping is a risky business. that's why rewards are high. it's just like any other activity where potential returns are high. it's usually because there's a lot of risk. with flipping, you know, there's risks that come from many different sources. one is risk of the home. if you buy a home that needs a lot of work or, you know, you didn't do as good a due diligence as you should have and there may be some big-ticket items you didn't anticipate, things like a foundation that needs repair or new plumbing or new roofing, those things can take a lot of your profit margins off of that flip. if you don't identify those when you're in contract to buy the house, you may get stung. second is, you know, risks that come with timing. so if you're planning to flip a property in one year, you know, it's not out of the question, the market could change in that year amount of time. and then third is, you know, just a logistical risk and challenges that come with a flip. when you're flipping a house, you know, and you're having to

really have to be an orchestra conductor. you have to bring all of the insurance together at one time. if you're not good at that, if your drywall person is flipping over the flooring person when is preventing the plumbing person from coming in, that adds costs. >> anybody who has ever been through a renovation knows it well. ralph, thank you very much, great to see you. >> great to see you too, becky, thank you. the super bowl is a party for the rich and famous, right? not to mention expensive game tickets. but it seeing the game in person out of reach? robert tuchman is an executive at a company that creates super bowl packages for mostly corporate clients. great to see you today. >> thanks for having me on. >> what's the answer? is the super bowl out of reach for those not super rich or famous? >> you do find those fans, their team

game, and like your last guest, they mortgage the house and find ways to pay for it. there's two ways to do super bowl. there's the value package, the people who just want to go and experience it. those could run around 5,000 to $6,000. and that's an all-inclusive package. then you have corporate spenders who add on things like meet and greets with players and passes to parties and golf and those can go in excess of, you know, $10,000 a person. >> wow. when you're talking all exclusive, when you get all of these things, what does that include for somebody? you're picking them up at the airport? >> oh, yeah. they get picked up at the airport. and they're taken to their hotel. most of the hotels in town set three or four-night minimums so you're in town from thursday or friday until monday morning. and you have obviously your hotel accommodations. there's breakfast, there's gift bags, there's little parties that we do with some of our players for meet and

and then of course you get transportation to the big game, and you get to go to the super bowl. >> the super bowl prices actually are falling this year. if you wanted to get a ticket, could you still get one? and why are they down? >> you know what, you still can. i would say this is a great year to do it. and the reason being is that a lot of the pricing and demand is driven by the teams that are in the game. if the dallas cowboys had gotten into the super bowl this year, because they have such a huge fan base and they're close to houston, the price of the ticket would have been probably twice as much right now for what they're going for. and right now, and this will sound expensive, but right now a ticket is about $2500 to get in the door. and usually, though, that price, let's say, for last year in san francisco, was about $4500. >> if you're not already in at this point, odds are you're probably going to have to wait until another year. what kind of tips would you be telling somebody for planning down the road, if you're spending your own money? how much are

about it costing? >> if you're spending your own money, you obviously want to do it right and well in advance. next year, the super bowl is in minneapolis. i love minneapolis, but not a destination you want to go to for a super bowl, not miami or new orleans. but in any case, the great thing about minneapolis, and i think they'll put on a great game, is that if you buy your package now, i don't think the demand will be as big. they're going to wait and see which teams get into the game. and that, again, is two weeks before. so you have a lot of time now to plan ahead of that. >> we just showed the average temperatures in minneapolis in february. that might be the answer. the mall of america is inside. robert, great to see you. >> thanks for having me. next, looking for work? the industry on a hiring spree. and the average interest rate for credit cards is on the rise. tips on how to manage you're debt. take a look at how the stock market ended the

what powers the digital world? communication. like centurylink's broadband network that gives 35,000 fans a cutting edge game experience. communication, like century link's broadband network gives fans a cutting edge experience. or the network that keeps a leading hotel chain guest s connected at work and at play. or the i.t. platform that powers millions of e-cards a day for one of the largest greeting card companies. businesses count on communication. and communication counts on century link. century link. your link to what's next. we've done well in life. with help from our adviser, we made it through many market swings. sure, we could travel, take it easy. but we've never been the type to just sit back.

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now here's a look at what's making news as we head into a new week "on the money." american businesses were busy hiring in january. the economy created 227,000 jobs last month. that was well above expectations. the unemployment rate, which is calculated by a different survey, rose to 4.8%. and average hourly wages edged up by just 0.1%. there was strength in the retail and construction sectors while the government sector lost jobs. that sent the markets up in early trading on friday after starting the week with their worst day of the year. stocks closed higher on friday. the federal reserve did nothing at its meeting this week. but that's still news.

at historically low rates. but the fed has said three rate hikes are likely this year. the smoke still hasn't settled from the vw admissions scandal. that didn't stop the german automaker from becoming the world's biggest automaker. toyota sold 10.3 million vehicles worldwide. the construction industry is booming. 1.3 million jobs were added in the last six years. and the demand for workers is likely to continue, especially if an infrastructure spending bill is passed. but there's just one problem. finding skilled workers. our kate rogers is in louisiana with that story. >> reporter: the construction industry's optimism is at a record high. according to a recent survey, 73% of general contractors plan to add workers in 2017. but that's only if they can find skilled labor. >> there are no longer a lot of experienced workers sitting on the sidelines. they've all retired or gone on to other indu

now contractors just can't find the kind of workers that they would like to have. >> reporter: come 2019, this gas liquifaction facility that runs through the gulf coast of louisiana will export natural gas to japan. chicago bridge and iron is continuing to expand, planning to add 15,000 new workers this year in the gulf coast alone. >> this wave for demand in workforce should continue well into 2025. >> reporter: theresa horner was a stay-at-home mom just 15 months ago. now she's a structural welder for cb&i, thanks to a training program she completed at a community college. she says the industry provides plenty of opportunities for those who want them. >> there are plenty of job prospects for several years to come. there's work. you just have to want to go out and get it. >> reporter: workers like horner say they are excited about trump's promises to rebuild america's infrastructure but also curious to see how his plans are put into action.

skilled workers, people like theresa, actually getting paid? >> reporter: i'll tell, these are definitely not minimum wage jobs. someone like theresa could make between 30 and $40 an hour. we also talked to analysts who point out construction workers do have the ability to really move up in their careers. and even some of them make six-figure salaries. so definitely high paying work, hard work, if you're willing to go for it, a worthwhile future for sure. >> kate, thank you so much. up next, we're "on the money." rising rates. how to keep your credit cards in check as interest rates keep going up. and later, a growing trend. no soil, no sunlight, but plenty of green with urban farming. i enlisted in the army in 2005. i went to iraq three times and afghanistan once. it ripped our door off, 2,000 pound animal bumping into a steel door creates quite

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legal zoom. legal help is here. this past december, the federal reserve raised interest rates for just the second time in over a decade. although the rate was left unchanged this past week, people may see their credit card interest rates go up. what should consumers do when rates rise? stacey tisdale, let's talk about, historically the rates are incredibly low, prime is, what did you say, 3 3/4%. >> yes. >> that's not necessarily reflective of what people see on their credit cards. >> you're not seeing anything like that when it comes to credit cards. the apr rate, annual percentage

rate, on:00 on:0 credit cards i. >> that's incredibly hike. >> what that's composed of, you of the federal funds rate, that's the primary, 3 3/4. that's what credit card rates play off of. >> a 12-point spread. >> yes. they put their fees in, the cost of borrowing and everything else is in there. most of what we pay on credit cards is much more about our own risk. >> if my credit score is what i can control versus what i can't, how do you break that down? >> people want to take a look at how they pay their debt. they want to pay more than the minimum payment, because once -- if you have that, then when rates rise, you might even be able to absorb it by the extra amount that you're saving. also, you want to do things like talk to your creditor. if you talk to your creditor, they may be able to move your balance into a refinanced account that will give you

also if you talk to your creditors and say, you know, when i signed up for this card i had bad credit, my credit has improved, they might lower your rate. there are all sorts of alternatives. people should be proactive. >> there was one shocking statistic we found when looking into this segment. the average credit card balance that people are carrying is like $16,000. that just seems insanely high. >> it's been tough. all sorts of circumstances. job loss, life changes. people turn to their credit cards. but you really can get trapped in the spiral. none of this rate increase stuff affects you if you don't carry a balance. >> i hear commercials all the time where they're offering services, come in and we'll make sure we get your credit cards, we'll negotiate for you on this. how do you know when it's a good deal or if it's a scam? because sometimes it sounds a little too good to be true. >> i've looked into this for years. what always comes up for me is the nfcc, national

they're free. when you look at these offers, there's usually fees and charges and things that they're not always up front about. the nfcc is nonprofit, go to nfcc.org. they'll call your creditors, they'll put you on a budget. we have so much stigma around credit card debt. and again, it can happen to people for different reasons. don't be afraid to ask for help. >> thank you. >> thank you, always a pleasure. coming up, a new green revolution with a taste for profit. >> this is l cleanest, healthiest food you're ever going to eat. what powers the digital world? communication. like century link's broadband network that gives 35,000 fans a cutting edge experience. or the network that keeps a leading hotel chain guests connected at work or at play. or the i.t. platform tt

millions of e cards everyday for one of the largest greeting card companies. century link. your link to what's next. i thought i was managing my moderate to severe crohn's disease. i didn't think there was anything else to talk about. but then i realized there was. so i finally broke the silence with my doctor about what i was experiencing. he said human era for moderate severe crohn's disease. the majority of patients in studies saw significant relief and many achieved remission. >> serious, sometimes fatal cancers have happened as have blood, liver, and nervous system problems. before treatment, get tested for tb. tell your doctor if you've been to areas where certain fungal

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for more on our show and our guests, go to our website. and you can follow us on twitter at "on the money." on monday we'll see how much americans spent last month with the consumer spending report for january. it also marks the day queen elizabeth inherited the throne back at the age of 25. she was officially crowned in june of 1953. on tuesday, the consumer credit report for december will be released. and fashionistas, listen up. on thursday, new york's fashion week kicks off. on friday, import/export prices for

these containers in a parking lot could be the next revolution in farming. a new startup is growing greens and herbs without soil or sunlight. here is a first look at these new urban farms called square roots. >> reporter: in the shadow of a new york housing project is the brainchild of tobias peg and his partner, kimball musk. >> this is a farm. >> reporter: urban farming. but instead of rooftops, the food is grown inside shipping containers. >> inside each shipping container is the equivalent of a two-acre outdoor field. >> reporter: his business is square roots grow, according to peg, designed to help entrepreneurs capitalize on what he predicts will be a real food revolution. >> people have lost trust in the industrial food system. those people will want real food. and kimball and i think that that opportunity that presents itself today is bigger than the internet was when we both started our careers 20 years ago. >> reporter: the food is grown

vertically, on these white towers that contain the crops without soil. >> he's probably growing 18 head of lettuce on every single tower. there are 256 towers. >> reporter: the environment inside is totally controlled. from the length of daylight to nutrients which are mixed in with the water that feeds the roots. >> we don't use pesticides. we don't spray. >> reporter: and the entire system, he says, is engineered to use the fewest resources possible. like these pink l.e.d.'s with just the right spectrum of light for growth. >> now i'm grossing watercress. i have a salad mix. >> reporter: he's a former banker turned farmer. >> the highlight for my week is to package it up and bring it to people. >> reporter: square roots works directly with farmers to make that happen, coaching them how to grow and sell, then takes a percentage of the revenue. >> the kale i'll be selling is three hours since it's been cut. i have no idea how old the kale

>> this is a global megatrain. >> reporter: just how big do you think this megatrend will ultimately be? he's planning to build urban farms in 20 cities by 2020. for "on the money," i'm andrea day. >> the farmers sell their produce to local restaurants and at farmers markets. startup costs can run in excess of $100,000. that's the show for today. i'm becky quick. thank you so much for joining us. next week, spend some time teaching your kids about money. we'll have money lessons you can start at any age. each week, keep it right here. we're "on the money." have a great one. see you next weekend.

good morning, america. breaking overnight, immigration showdown. the trump administration denied their move to block a judge's ruling freezing the immigration order of the president was blocked just hours ago. the vp weighing in with george this morning. >> the president of the united states has the authority in the interest of national security, to determine who that has right to come into this country. preme court?ight headed for the race against time. visa holders scrambling to the airports. seizing their windows of opportunity. reuniting with loved ones. >> i just hope that everything is okay. >> others still uncertain about their future. from suicide to murder. a husband now