Reading success stories is great but I think that sometimes you can learn more from failure than from success. If you are willing I would like to hear your failure stories. Please share what happened and why you think it failed?
I've bought more than a hundred properties, so I have learned a lot. You learn from your failures.
Here are a few:
1. Not carefully securing a vacant property. It was broken into.
2. Letting in a tenant because she was a friend of a good tenant. No correlation. Fully check their background.
3. Not getting a professional inspector on a property. I overlooked a few things.
4. Not buying more properties years ago when they were cheaper...
@Brian Ploszay How do you secure your vacant properties now?
@Thomas Robb There's more crime where I live than Bakersfield California. I employ a caretaker. I have an alarm system - Simply Safe. I don't use, but I recommend steel board ups. There are a few companies in my market that do this.
I've already shared mine on the podcast (and a few times here). Lost over $100k on a new construction project. Podcast link below for more details!
1. Failure to specify a limit on repairs listed in the contract. Other agent knew what he was doing for his clients. They knew I wouldn't walk out on a 409 k deal over 7 k in repairs from now on I specify a repair limit or it's sold as is.
2. Not increasing my insurance coverage over time. One of my properties burned total loss. My property doubled in value over 15 years. Took 150k to replace insurance was 79k.
3. I let a tenant replace a faucet and paint. During the eviction I couldn't prove we exchanged a portion of the rent for his work. I lost The past due rent but tenant had to move.
My three biggest failures I learned from.
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