Brag about your failures

Investor · Eastlake, OH · Member since 2015 · 174 posts · 85 votes

I have found since being on BP that many people talk up their successes, which is great, but it creates a synergy and we often forget to discuss about the reality of life, success is usually preceeded by failures.

As a Newby trying to get into REI I'd love to hear your blockbuster failures.

1 Reply

19 views

Most Popular Reply

Chad W.

Investor · Sacramento, CA · Member since 2011 · 24 posts · 22 votes

11y

Hi Joel,

Noticed that you had only one taker for your post. I was thinking about the same thing and I think the problem is that this site, as useful as it can be, is not too keen on anything that makes the product or methodologies being pushed look unappealing. For me, I am getting better returns off of an un-managed index funds than I am on two paid off Memphis turn key properties year over year. To be fair, I am making money, but just barely.

Funny thing there, I bought mine in 2012 when they were going for half what they are selling for now. I wonder how new turn key investors in Memphis are doing? One broken AC unit and there is almost NO WAY to make a profit with conventional financing. Vacancy? Forget it, you're hosed...

2 Reply

See this reply in the discussion

8 Replies

Jump to latestLatest

Sort by

Chad Clanton
Contractor · San Antonio, TX · Member since 2013 · 647 posts · 205 votes
11y
@Joel W., I'm just going to link to it, because it's a long one :-P As bad as it went though, it got us going, taught us a ton, and got us to a place we actually want to be, so not complaining a bit. I'd recommend avoiding all the "oopses" in the linked blog post :-P Good luck in your investing, and always feel free to reach out.
0 Reply
Chad W.
Investor · Sacramento, CA · Member since 2011 · 24 posts · 22 votes
11y
Hi Joel,
Noticed that you had only one taker for your post. I was thinking about the same thing and I think the problem is that this site, as useful as it can be, is not too keen on anything that makes the product or methodologies being pushed look unappealing. For me, I am getting better returns off of an un-managed index funds than I am on two paid off Memphis turn key properties year over year. To be fair, I am making money, but just barely.

Funny thing there, I bought mine in 2012 when they were going for half what they are selling for now. I wonder how new turn key investors in Memphis are doing? One broken AC unit and there is almost NO WAY to make a profit with conventional financing. Vacancy? Forget it, you're hosed...
2 Reply
Thelonious Jones
Atlanta, GA · Member since 2015 · 157 posts · 83 votes
11y
I have a property that we have had 3 evictions within 2.5 years. Another property with 2 evictions in 2 years. Another property with 2 evictions in 2 years. Ran threw 2 property managers in 1 year, lost a couple grand in b/s contracts.
Though we have learned from every single situation, however have lost thousand of dollars not screening correctly and dealing with headache tenants.
Also lost about $4000 doing a bridge loan for a shady wholesaler.
Lost thousands upon thousands in lost/stolen equipment, because we do contracting also.
Have had a property broke into and the wires/electrical stripped 2 days before section 8 inspections.
We invest in high distressed areas, so a lot of headaches come with that.
0 Reply
Joel W.
OP
Investor · Eastlake, OH · Member since 2015 · 174 posts · 85 votes
11y
@Chad W. Thanks for the insight. I had left this thread for dead. So if your RE is not performing and your indexed funds are, what is your next step? Do you see a positive outlook?
@Thelonious Jones Thanks for the exhaustive list. Have you re thought your investment strategy?
0 Reply
Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
11y
@Joel W. One of my failures is a mistake I make over, and over and over again....which makes it worse since I obviously can not learn from my own mistakes. I constantly will go into an REO or estate situation and always talk myself into the fact that I think the HVAC will last a few more years. Each time I have to completely replace the HVAC within 6 months. I am doing this now for the 4th time in the last 2 years I believe.
When an older HVAC is not running for months (estates) or possibly years (REO's) they just go bad. You fire them up and the freon freezes everything, or a small leak explodes, or the motor seized during nonuse.
[email protected]301-893-4635 Podcast Guest on Show #192
District Invest Group545 Reviews
Website View Page
0 Reply
Joel W.
OP
Investor · Eastlake, OH · Member since 2015 · 174 posts · 85 votes
11y
@Russell Brazil Duly noted thank you.
One mistake I've made recently is paying for a year of insurance up front, off the word of the loan officer that we were about to close the next week. 4 months later we still have not closed. $90 a month for a property I do not own.
1 Reply
Thelonious Jones
Atlanta, GA · Member since 2015 · 157 posts · 83 votes
11y
Yessir, learned a lot.
Peace
0 Reply
Chad W.
Investor · Sacramento, CA · Member since 2011 · 24 posts · 22 votes
11y
Originally posted by @Joel W.:

@Chad W. Thanks for the insight. I had left this thread for dead. So if your RE is not performing and your indexed funds are, what is your next step? Do you see a positive outlook?
Not sure right now Joel. I just paid them off this year. had I not done that I would have had a negative cash flow for the second year in a row with both of them. I am hoping, probably foolishly, that next year will be better, that the tenants will stay current and that nothing else will break, but you know, good luck with that right? If things just don't work out after next year I will likely sell both and apply the money to our next primary residence and go back to investing in stocks / primary residence only.

Cheers,
-Chad

0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.