we look at how aggressive bets and a little dirty work are turning profits in a messy market. and, cool kids. would you want your little ones hanging out with edgy comics like jack black or sarah silverman? seems like millimeters of parents say "yes." just another day on "yo gabba gabba." >> announcer: from the global resources of abc news, with terry moran, cynthia mcfadden and bill weir in new york city, this is "nightline," november 29th, 2011. >> good evening, i'm cynthia mcfadden. tonight, on the island of aruba, the only suspect in the disappearance of a 35-year-old american woman was released after four months in jail. authorities on the island believe a man she met online, gary giordano, was involved in her disappearance. but as of tonight, there is still no body and no physical

evidence. abc's matt gutman had exclusive access to giordano as he was released. >> reporter: it was the moment gary giordano had waited for for 116 days. the only suspect in the disappearance of robyn gardner. now, a free man. but even as he and his attorneys rolled out of the prison gates, they were swarmed by the media, blocking his car, peering inside. abc news was there as giordano arrived at this hotel. low cams angry taunts of "murder." tonight, his first night out of a bathroom-sized cell he shared with two others for 17 hours a day. his first unmonitored and emotional call home to his three sons. and an embrace. the attorneys that helped secure his release. but that freedom could be fleeting. >> if a new order for detention is given, we aim to file a recrest for mr. giordano's

extradition with the u.s. authorities. >> reporter: an arduous, months-long process that could begin as early as tomorrow in the aruban high court, could decide to extend hisdy tension. a move that will require extradition as giordano is expected to return to the u.s. tomorrow morning, before the hearing. and for giordano, the scramble off the island begins. >> i'm rey leavlieved for him. a great injustice has been done. a man's life has been turned upside down. his business destroyed. his life completely derailed. i don't think he'll ever be able to put this behind him. >> reporter: and cohoreographin it all, jose baez, the attorney that spearheaded casey anthony's acquittal. he arrived on the island well past midnight last night, sitting down for a late-night interview. >> it's been a fishing expedition and it's time for them to cut bait. >> reporter: giordano arrived on this island on july 31st with

gardner a woman he has described as aplaymate, rather than a lover. that night, the couple partied. two dames later, this video shows them strolling toward this beach. they returned here, ate here at the rum reef restaurant. a waitress snapped these pictures of them. then, for two hours, the couple sits on this rocky outcrop, as re-enacted by police look alikes in september. giordano says at this point, they slipped into the water to snorkel. this footage is the next we see of him. investigators say he casually knocks on the restaurant's windows to seek help. >> what mr. giordano has told us is not true. his description of the situation is not in accordance with reality. >> reporter: giordano told investigators there was a sudden storm. he swam for his life. when he looked back, gardner was gone. >> we know that that day there was virtually no wind. there were no waves and the current was practically nil.

>> reporter: but the absence of a bold, a murder weapon or even a solid motive hasn't tampened suspicions. what they do have a mountain of circumstantial evidence. most critical, a travel ininsurance policy giordano purchased for gardner just the day before they left, naming himself the beneficiary. >> the prosecutors had to come forward with something more, something additional to say, this is why we need to hold him again. and this time, they didn't have anything else that was new. i think the aruban justice system is trying to say, we're going to treat gary giordano the way we treat anyone else. >> reporter: a case similar to the disappearance of natalee holloway in 2005, who vanished from this island. joran van der sloot, the man suspected of killing her, was released. he's now in prison in peru, charged in a 2010 murder. in contrast to vander shoot's

shifting story, giordano's their tich has been vague but consistent. and authorities had enough to hold him. gardner's friends and family called for the investigation to continue, saying it is unlikely that gardner would have gone snorkeling in the first place. abu bran authorities scheduled a hearing for tomorrow, but with that prime suspect heading home, it's unclear if they'll be able to compel american courts to send him back. >> if the authorities are ready to move forward with a prosecution, and they have evidence against him, i think there's a good thank he would be extradited. but if this is just an extradition so that he can sit in a jail cell while they continue to investigate? it's going to be a tough argument. >> reporter: investigators here vow they won't rest until they unearth the truth about what really happened to gardner. but they seem no closer to finding that out than they were four months ago. i'm matt gutman for "nightline" in aruba. >> tomorrow morning, "good

morning america" will have more with matt gutman from aruba. and next up, a real estate team actually making money in this market, although sometimes it's a smelly business.

>> announcer: "nightline" continues from new york city with cynthia mcfadden. >> and to the economy, new housing market numbers are out today and they are not encouraging. home prices last quarter fell 3.9%. and after months of improvement, the number of foreclosures has begun to creep up again. but for the foreclosure cowboys we're about to meet, that bad

news could be good news. here's abc's ryan owens with tonight's "realty check." >> welcome home, sweetie. >> reporter: mike baird and doug clark are business partners. among the resourceful few who have actually figured out how to make money in this topsy turvy housing market. >> you know you have a good house when you have a shopping cart just chilling in your driveway. >> reporter: they do it by flipping foreclosed homes. >> it's his mess over here in this area. 56 grand on this. >> is that going to be cheap enough? >> reporter: they've sold 1,000 and counting. >> there's a lot of properties in default. >> walking into a huge mess. >> get out of the neighborhood before you get shot. >> reporter: it's the same story for much of the country. last month, 1 out of every 563 housing units nationwide went into foreclosure. nevada has the highest rate, 1

in 180. california is next with 1 in 243. in utah, where mike and doug are, it's 1 out of more than 500. their business, which they operate together out of salt lake city, is not for the faint of heart. they buy these foreclosures at auction, which means they have to put down their money -- >> is anyone else jumping on it? >> reporter: before they ever step inside. >> sold. >> reporter: what they discover once they do can be disturbing -- >> that right there, that's nasty. >> reporter: and disgusting. >> that's not ketchup. that ain't ketchup. poo stain. this is off the charts. >> reporter: the perfect recipe for reality tv. >> we're "flip men." >> reporter: what does it say about the housing market right now in the united states that there are so many foreclosures, you can do a reality show about it? >> it's a huge problem. >> yeah. >> we're trying to show what it really is. the names, the faces, the

stories, the places. we see it. >> i'm mike baird. >> and i'm doug clark. >> reporter: their show debuted this season on spike tv, a cable channel that caters to macho men. >> i think you're going to see a much more real, raw feel to our business and how intense it is. doug and i are head to head every day, simply because it's a lot of money. >> reporter: it's true mike and doug don't have to manufacture much drama. take this home they bought in a nice salt lake suburb. they paid $190,000, expected to put about $35,000 back into it and sell it for $240,000. a quick profit of at least $15,000. that was the plan -- until we walked down into the basement. >> you can already smell this, a long time before you get down here. >> yeah. it hits you like right about here. >> reporter: there is mold all over the walls and something even worse growing out of that

damp carpet. >> whoa, whoa, whoa, whoa is this -- just -- mold for real? this looks like -- >> these are actually mushrooms that are starting to grow up through the carpet. >> this is bad. about as bad as it gets as far as mold. >> absolutely. >> reporter: the next day, mike and doug were back in the basement with has mat suits, ripping up the car pelt and tearing down the walls. all of this work and they still will not make a profit on a house that looked oh, so promising from the outside. >> the biggest risk for us is we don't know what we're buying. that is a risk. >> reporter: homes like this one. they nicknamed the dungeon house. because of this creepy room out back that they quickly demolished. okay, guys, i see a dump. what do you see? >> money. >> big money here. >> reporter: they bought it for just $51,000. they will put a mere $7,000 in over the next week or so and put it on the market for $90,000.

a quick profit of more than 30 grand. so, is this the most expensive house you guys have ever bought? >> by far. yeah. >> reporter: how does this go for? >> just over $1.6 million. >> reporter: and you hope to see it for? >> two and a half -- >> that would be great. >> reporter: it has six bedroom suites, ten bathrooms, a pool and inground trampoline out back. a racquet and basketball court inside. mike and doug had 25 minutes to decide if they wanted to buy. compare this house to the moldy basement house or a number of other houses we've seen. which one givens you the biggest nightmares? this one because there's so much money? >> absolutely. >> reporter: without question? >> absolutely. we know we can fix mess. we can fix a lot of things. but a house like this, in this market, this is maximum risk for us. >> reporter: as we said, not for the faint of heart. but if you start smell and simple, these two say there's no reason you can't turn this tough

housing market into real cash. after all, they've turned it into reality tv. >> they come with no keys and no guarantees. >> reporter: i'm ryan owens for "nightline" in salt lake city. >> quite a team. next up, the show where edgy pop culture turns kid friendly. can you say gabba gabba? i'm getting new insurance. egan. marjorie, you've had a policy with us for three years. it's been five years. five years. well, progressive gives megan discounts that you guys didn't. paperless, safe driver, and i get great service. meredith, what's shakin', bacon? they'll figure it out. getting you the discounts you deserve. now, that's progressive. call or click today. that's why there's crest pro-health clinical gum protection.

it helps eliminate plaque at the gum line, helping prevent gingivitis. it's even clinically proven to help reverse it in just 4 weeks. crest pro-health clinical gum protection.

in more ways than ever. and our networks are getting crowded. but if congress frees up more wireless spectrum... we can empower more people to innovate... putting momentum behind our economy. and we can reduce the deficit... with more than thirty billion dollars paid by america's wireless companies. it's simple -- more spectrum means more freedom. for everyone.

it's a tv show for kids, but instead of cartoons, there are live action puppets. and instead of nursery rhymes, there's indie rock. "yo gaba gab ba gaa gaba" is f and even has performed for the obama girls. here's abc's chris connelly. >> reporter: welcome to preschool palooza. from the shins to mgmt, a host of left of the radio indie darlings, has been elevated from the underground to the play room. >> love dancing to music. it's awesome!

>> reporter: this is "yo gabba gabba," now in its fourth season on nick jr. combining retro with a wink visual and colorful merry monsters with music. >> my name is rocky. i like to dance. >> the purest example of just being a kid is jumping up and dancing. >> it's joy. >> yeah, and our show really wasn't about, like, let's make kids play out a narrative and act. >> reporter: it's all part of the show's unconventional formula. one that's resulted in a triple stacked fan base. toddlers and preschoolers. their parents and indie-fied college agers. "gabba" even performed at coachella. >> it takes sometimes 20 years for brands to be able to connect with an older audience. "gabba" did it overnight. >> i'm sitting on the coach watching it by myself sometimes. it's awesome.

>> reporter: each show, dj lance rock brings his monster toys to life. unlike most kids fare, it's not a cartoon. but live action pup penalties at play. >> yeah! >> we don't do abcs. we're not teaching english. you're teaching kids to share and love each other. ♪ love love love >> reporter: wholesome messages. >> don't fight your friends. >> reporter: advanced by biz markie, teaching kids his beat of the day. and drawing pictures. frontman for the '90s band the aqua bats, christian jacobs created "yo gabba gabba." >> we come have being musicians

and in bands and doing our own thing. welcome, chris. we felt like, in watching a lot of the preschool stuff with our own kids that there wasn't something that was speaking exclusively to our generation. >> reporter: from costumes to stone age visuals. ♪ ♪ adventure ♪ let's all go on one ♪ >> reporter: the show has a boisterous, kid-friendly cool that reflects the youth culture of california's orange county. down for the fun celebrities like jack black, elijah wood and sarah silverman leave viewers in what the show calls a dancy dance. who can pass up wearing an as cot and an artist's chapeau? >> hi, everybody. my name is chris, and i know a really cool dancy dance. it's called the puppet master. on the stage, i'm encouraged to

dance and to high five the show's furry cast members. i'm not the first to do this dance on the show. check out elijah wood's moves. meanwhile, their live show is playing 130 shows in 55 cities this year. with the show's cast on stage and feeling the love. >> they treat me like i'm a cuddly bear. i got cook keep ies all over me. they don't want to let me go. ♪ we have to jump ♪ shake >> a dream for the live show was to be a kids first concert. "yo gabba gabba" means magic. >> reporter: at the merchandise counter, it's about sneakers and backpacks and such. >> luckily they took credit cards. we hit it up. >> reporter: all that success has yet to add up to big money for the show's creators. >> all aboard! >> we're still the same dads that we were before the show

start and we're still driving the same cars. >> reporter: why respect you calling your agents, saying, i'm in my fourth season, i'm driving the same car i drove to do the pilot! all in time. with the show still a smash, and the onset mood still magical -- everybody go crazy! "yo gabba gabba" continues to look into a tech any color future. i'm chris connelly for "nightline" in los angeles. >> ah, thanks for watching a b c news. jimmy kimmel is next. good night, america. >> dicky: up next on an all-new "jimmy kimmel live" -- shaquille o'neal. >> jimmy: i feel like you miss male companionshicompanionship. you touch me a lot. >> that's because i love you. you know i love you. >> dicky: julia jones. >> i was told that nobody would be lifting me. >> dicky: and music from david guetta, featuring usher. >> jimmy: rick perry woke up this morning, read the news about herman cain, saw all that