Non-success Story
So there ought to be a forum section for mistakes. A place where we can post our defeats, where we can process what went wrong and share with others so they can avoid the pain. Since that doesn't exist. I'll post here.
My out of state (Cheyenne Wyoming) real estate venture has wrapped up. I lost money despite selling for more than I purchased it for. I had holding costs plus some work I did. It was an updown duplex that had an ARV of about $150K but just couldn't get it done. I was under capitalized and under staffed.
Bought for $27,000 held for 2.5 years sold for $42,500. Paid heat, lights, water, sewer, garbage, taxes, and insurance. Adds up over time. Also did about $7k of work plus closing costs on both ends. Still had about $50K to go. Just couldn't get up there to get the work done or dedicate the funds to pay someone local to get 'er done. Someone offered me money to walk away and I took it. I now know how don't wanters feel. Very glad to sell and be done. All in I probably lost about $5K not to mention the amount of my own time I sunk into trying to get stuff done. I planned to do the work myself since I couldn't make myself pay the local contractors their outrageous prices. Huge mistake. Time is probably the biggest loss. I'm sure had I used that time to work my deals down here in Denver I could have actually made money.
Lots of issues with the cost of local contractors. I was getting quotes about 3x-5x what I could get the work done locally. None of the plumbers had heard of PEX and the list goes on. Huge local prejudice against carpetbaggers like myself. I know the bids they gave me included a non-local markup. They could do that because the local oil field market had sucked up all available labor talent.
Moral of the story for me, stay close to home and do what I know. Plan to hire the work done, get bids for work I don't know what it will actually cost and allocate the funds to pay someone to do the work.
Learn from my mistakes fellow BPers.
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Real Estate Agent Colorado (#IR044146)
- Reliant Real Estate, Inc.
This thread is awesome. Real people sharing their real experiences about defeat. We live and we learn, but its even better that we can learn from each other.
@Bill S. Thanks for sharing. As long as we learn from these mistakes and each other, we'll be successful in the long run.
@Bill S. You did yourself a favor by taking the money, stopping the pain, and being able to move onto other deals. 5K is a really small loss to take for such a valuable lesson! I think all of us, myself included, have taken losses, or managed to get into deals that did not go as planned. The key is just having more wins than losses, and always moving forward. You were right about the "time" being the most valuable thing you can lose. Thanks for posting :-)