How I Lost Over $60,000 On A Real Estate Flip & 3 Things I Learned To Help Any Real Estate Investor

How I Lost Over $60,000 On A Real Estate Flip & 3 Things I Learned To Help Any Real Estate Investor

Hey guys, welcome back to another episode. I’m your host Adrienne Hernandez today today is a very interesting episode See, I’m not gonna share any rainbows with you guys are some positive all this cash What I’m gonna share with you is actually a loss and it’s how we lost sixty thousand dollars Unfortunately on this property here, but fortunately we learn something from it so in this video we’re gonna go through three learning lessons on how you can set yourself up to make sure you don’t lose any money like we did but most importantly how you can see a Real-life example of what happens in real estate investing. You’re ready. Let’s go You guys there? Alright, let’s go All right guys, so as I mentioned we are here in San Diego San Diego California for those of you who don’t know But I wanted to share this with you because a lot of the times especially on Instagram on social media We think that everything’s profit. Everybody’s living this great big wonderful life or ever’where No mistakes happen where people don’t fail and I got to tell you guys that’s not the case Especially in real estate investing you see there are great deals where you earn money on and then there’s deals Were like this one where unfortunately you lose money on and that’s why I wanted to share with you today I want to share I want to share a real story I want to share a real-life example of what happened to me and a partner of mine when we came to flip this house and and this is the property here and we’re here in San Diego as I mentioned guys and you know a pitfall that we made I’m gonna share some pitfalls and I want to share a learning lesson with you because we lost 60,000 dollars off of this flip right behind me. Okay, sixty thousand dollars now Yeah, we’ve had some deals where we’ve earned sixty thousand, but that’s not the point The point is is that it doesn’t matter where you’re at. It doesn’t matter what you’re doing. There’s eventually going to be a loss Everything’s not going to be positives and you need to know you need to be able to recognize What do you do when there’s a loss? What do you how do you adjust? How do you pivot? What’s the learning lesson from it? You see there’s always two ways to look at this. Oh my god. I messed up I took a loss this this is horrible. I’m never gonna do this again or Okay, I had a loss. What went right? What went wrong and how do we make it better? Next time you see? That’s what real entrepreneurs do they get punched in the mouth and they continue going right? So let’s let’s talk about this Where did we go wrong? Well, the first thing that we went wrong is we looked at and we bought this home this home was slightly over its 2,200 square feet it slightly over built for this neighborhood. Look at next door. This is a single-story house. This house is only 1500 square feet the house next to it 1600 square feet this house right here right across the street 1500 square feet So listen, I tell you this because one of the learning lessons here If you’re a real estate Investor know if the home for instance like this one is over built or under built for the neighborhood This home was over built So the amount of time that it took to sell it was a lot longer than the small house next door There’s now the second thing that we did wrong is we didn’t look at different trends that were occurring in the neighborhood You see this neighborhood has a very unique trend that’s occurring They’re looking for certain colors when we first painted this home. We didn’t match those colors We didn’t fit what the area was demanding So you have to make sure number one that the homes not over built or under built and number two You have to follow the trends now this is a third thing that went wrong the third thing that went wrong and I want you to walk with me is that we really didn’t and This was a mistake we made but again we learned from them, right? This was a mistake we made where we didn’t fully look at the neighborhood We didn’t fully check in with all the neighbors because look at this house right here This truck was parked in front of that house the entire time we were on the market If you can zoom in here The home needs some work in Fact the home needs a lot of work. We contacted them to see if they would sell it to us We were unsuccessful to purchase the property So while this home was on the market you had an eyesore right next door that took away from the curb appeal of this home Another negative selling factor. So guess what happened this property sat on the market for over a year We had the property under we had the property we were paying Interest and alone on this property for over a year, and we ended up losing $60,000 now I share this with you because I want you to learn from our learn our lessons I want you to take what I’m giving you understand if the home is under built or over built for the area Take a look at the different trends that’s occurring and make sure that the neighborhood will support your sale when you come up for sale Does that make sense you guys these are heat these are tips that help save you thousands of dollars Okay, so this is a real life scenario negative $60,000 Because we simply didn’t look at three simple things that could have made us money versus us Losing money that makes sense. So make sure you guys don’t catch yourself that way take a look at these tips utilize them again If you have any questions, send me a direct message You love to help you guys, but this is one of the properties where we unfortunately failed on Well, I don’t think we failed We actually learned we learned a lot and I’m very grateful for it and made our partnership even stronger So there’s always a light at the end of the tunnel But you got to be able to see the light and adjust from the light moving forward So, thank you guys for tuning in guys Do me a favor if you haven’t done so already hit that subscribe button share this video with anybody You know who’s starting off in real estate investing and if you have any questions send me a direct message if you’re on Instagram Hit that like button. See you guys real soon later

4 thoughts on “How I Lost Over $60,000 On A Real Estate Flip & 3 Things I Learned To Help Any Real Estate Investor

  1. Thanks for sharing your lessons learned. Looking back, think you could’ve done things differently to make it profitable? Or was it just a bad buy at the price you picked it up at?

  2. Great Advice. People never say about losing money on their flips and we do from time to time and You never lose if you learn from your mistakes and mistakes can be expensive.

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