The Worst $3,200 I Ever Saved

6 Replies

So, being a new investor I'm always looking for ways to save money. My thinking was by doing some things myself I can funnel the saved cash into the next deal, or I can gain experience by being hands on when possible, or that thing on a project myself will help my daily cash flow. 

Using that mindeset I decided to paint my most recent project myself rather than have it contacted out. The best bid I received on the interior painting of the home was $3,200. After discussing it with my wife and brother (my partners) we decided to handle the paint ourselves...it was a mistake.

We did a good job, and we've painted before, but it was still a mistake. The project took us almost three weeks, where the professionals could have finished in just one week. We only had two days a week to go over there and do the work becauase of our full time jobs. In addition it exhausted us, because when we werent working we were thee painting.

Most importantly, it took time away from working on our business because we wee so busy working in our business. We couldn't network, analyze deals, look at other markets, arrange financing, or anything other than paint to be honest.

What we learned is that sometimes it's important to spend the money to free up time and energy to work on moving forward and building your business. Don't make the same mistake.

Excellent lesson learnt and shared !!!!

Originally posted by @Bora Yalcin :

So, being a new investor I'm always looking for ways to save money. My thinking was by doing some things myself I can funnel the saved cash into the next deal, or I can gain experience by being hands on when possible, or that thing on a project myself will help my daily cash flow. 

Using that mindeset I decided to paint my most recent project myself rather than have it contacted out. The best bid I received on the interior painting of the home was $3,200. After discussing it with my wife and brother (my partners) we decided to handle the paint ourselves...it was a mistake.

We did a good job, and we've painted before, but it was still a mistake. The project took us almost three weeks, where the professionals could have finished in just one week. We only had two days a week to go over there and do the work becauase of our full time jobs. In addition it exhausted us, because when we werent working we were thee painting.

Most importantly, it took time away from working on our business because we wee so busy working in our business. We couldn't network, analyze deals, look at other markets, arrange financing, or anything other than paint to be honest.

What we learned is that sometimes it's important to spend the money to free up time and energy to work on moving forward and building your business. Don't make the same mistake.

 Yeah painting sounds easy but turns out it is really hard labor. I painted once it was hell and then I did not like the color. I stop by the dunn and edwards store, picked up some different color paint and a couple dudes ready to paint. They did the job like pros quick. Forget painting yourself unless you like torture:)

Good luck! 

I love painting, and usually do at least some at every job, but I never do the whole thing anymore. We found someone who does a great job, is honest and dependable, and only charges $10/hour. I simply can't justify doing it myself.

$10/hr for a decent painter? I wish I could find someone willing to do it for less than double that value (for a so so job).

@Bora Yalcin this applies to more than just painting. Many investors want to do all the repairs themself. They don't do it as well as a professional and it may actually cost them more in the long run. Meanwhile, they are spending their time doing manual labor when they could be working on the next deal.

I also see this a lot with people managing their own rentals. Yes, they save 10% a month but they don't know the law, they don't know how to screen, they don't know how to manage bad behavior, they don't know the market and rent too low, etc. I can't tell you how many times I've spoken with a Landlord that brags about saving money on property management but then tells me about how their last tenant cost them $4,000. Most of the people I manage rentals for are making more money AFTER they hire me!

@Brian Pulaski Gives you that weird feeling if someone tells you that they charge 10/hr and do a great job. If someone tells me that they do 10/hr, I would say to myself “how much time and material do i need to spend again if i take this gamble”. heh

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here