The Gaineses founded Magnolia Realty in 2003 in Waco, Texas.
Chip used to own the company with John L. Lewis and Richard L. Clark, who later sued Chip for over $1 million. Lewis and Clark said that Chip pressured them into selling their shares of the company for just $2,500 each in May of 2013, just before it was announced that the Gaineses would star in “Fixer Upper.”
A judge dismissed the lawsuit and sealed the records of the case, including Chip’s deposition on the matter, according to the Waco Tribune-Herald.
Magnolia Realty has since expanded to five other markets in Texas, as stated on the company’s website.
Despite its success today, the company likely wasn’t worth much before the couple rose to fame. Chip had to go to county jail just after their first son, Drake, was born in 2005 because he and Joanna had accrued $2,500 in unpaid tickets for allowing their dogs to roam around unleashed. Joanna had to scrape together money for his $800 bail.
“I think for me, the best lesson is always having a nest egg on the side,” Joanna told Business Insider of the incident.
