Flip Scenario: Over invested and now we need out

[Rachel Kennedy]

We are in Denver. Bought a flip in one of Denvers hottest neighborhoods. We made a HUGE mistake and lost track of our numbers. We are about 80% done but have invested $625K into a $640K ARV house (I know, stupid stupid mistake).

In order to lose as little money as possible on this we need some creative exit strategies.

[Jonathan Greene]

@Rachel Kennedy the only way to prevent a larger loss of your money is to finish it. Selling an unfinished flip is telling every buyer you are desperate and ran out of money and mismanaged your flip budget. Even when all true, you don't want that out there. I also do not think you should Home Depot the end part, you will just end up getting exposed on that as well. Once you are this far, you have to finish or you end game will never be what you want, even in your worst case thought right now. Any undone flip I look at where the agent tells me the owners just got tired of it and want a quick exit and look at all the work they did for you, I know it's always bad decisions and my offer is way lower than they will ever want. Finish it the right way, it's the only to maintain the integrity of the project, even at a loss.