Santa Rosa, CA · Member since 2015 · 5 posts · 0 votes
We all have success stories, but what about the costly mistakes, the bad judgement, the failure to understand expenses.. Before I get back into real estate, I'd appreciate hearing from any of you that have made big mistakes. I'm in Santa Rosa CA Thank you.
Investor · Winter Park, FL · Member since 2015 · 14 posts · 5 votes
9y
I bought my first flip at a foreclosure auction. In escrow, I found out it had unpaid property taxes for previous years. We still did okay on the deal, but it was a huge bummer.
Real Estate Agent · Minneapolis, MN · Member since 2016 · 52 posts · 37 votes
9y
Cheyenne, I feel like you are trying to talk your way out of getting in the game. Understand your numbers. Understand your market. Understand everything you can, and if you can't, hire a good professional to help you navigate the troubled waters in those areas. You can do this, do not succumb to being a Chicken Little!
Flipper/Rehabber · St Petersburg, FL · Member since 2016 · 44 posts · 14 votes
9y
After investing thousands in marketing lost my first deal to other company, because I thought offering more than 70% ARV - repair costs - my wholesale fee would be stupid and I'd be stuck in a deal. I was also too conservative with ARV. Competition didn't follow 70% formula, offered $12k more than I did and they still made profits. Lesson learned, every deal is different. If location is great, there is always gonna be a buyer for it even if its 80 or 85% ARV. Then you target people who want to fix and live in a house, not fix and flip for profits. Never lost money on another deal. Although, I know houses that were bought at 65-70% ARV, were nicely remodeled and now they just sit on market for months because of a bad location.
Flipper/Rehabber · Golden, CO · Member since 2013 · 590 posts · 319 votes
9y
Getting into business with the wrong person. Didn't know him well enough and went in too much too fast. Found out down the road a few months it was big mistake. Lost a ton of money in the process, not to mention the headaches and stress and I am still dealign with it over a year later. Bottom line, be very careful when entering into any partnership and take it slow. Business can get messy quick when you're involved with the wrong people.
Those with the biggest failures, and I am certain there are more failures than successes, are no longer on the forums.
Sometimes you need to make mistakes to get ahead and get wiser. You may be right, but in the same token a lot of the most successful investors on here have made big mistakes and bounced back.
Investor · Singapore · Member since 2013 · 1k+ posts · 3k+ votes
9y
Invested in a development project without knowing anything about development. Apparently neither did the promoters. Lost money, sued General partners, recovered most of the money but after years of headaches. Lesson learned. Its the people who make the deal more than the numbers.