Tell me about deals gone badly! - We learn from your mistakes!
I just worked for a couple of months to realize my deal is a dud. Lots invested for minimal to no cash flow.
I shared the story in another thread, but I am curious to hear your stories. Anyone else have things go sideways?
I want to hear about folks who have gotten in over their head. Or about a deal you worked to finally get and it ends up not a good deal.
How did you solve? Did you sell?
I think these stories can actually be motivating because we need to understand there is always risk in investing but we can grow together. The key is to LEARN and stay motivated. I am determined to fix my situation and move forward. Please tell me your stories.
Let's hear about things that became badly screwed up!!
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- Real Estate Broker
- Lake Oswego OR Summerlin, NV
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#2 All Forums Contributor
- Real Estate Broker
- Lake Oswego OR Summerlin, NV
hard to get people to admit they made boo boo's they tend to just go off and sulk and get out of the game or they wipe themselves out and can't afford to move forward.
but if you want to sit down we can go all 18 on my 40 years ... grab your popcorn.. :)
But to be fair and balanced I have hit some grandslams too :)
On my first flip I overimproved it and just broke even. Spending too much is REALLY easy to do.
Originally posted by @David J.:
I just worked for a couple of months to realize my deal is a dud. Lots invested f or minimal to no cash flow.
I shared the story in another thread, but I am curious to hear your stories. Anyone else have things go sideways?
I want to hear about folks who have gotten in over their head. Or about a deal you worked to finally get and it ends up not a good deal.
How did you solve? Did you sell?
I think these stories can actually be motivating because we need to understand there is always risk in investing but we can grow together. The key is to LEARN and stay motivated. I am determined to fix my situation and move forward. Please tell me your stories.
Let's hear about things that became badly screwed up!!
One of the worst mistakes I made was letting a seller stay in the property after I bought it. He said he had medical issues he was being treated for that were quite serious. I thought I would be "kind" and let him stay until his treatment was over in 6 to 9 months. I set up a rental agreement with him. He over stayed the agreement, I went to evict and he found a "Social Justice Attorney", both seller & attorney were minorities, (I'm just a rich old white guy to them) and they sued me saying he never sold the property and the Warranty Deed was a forgery. Obviously there was a Notary, Purchase & Sale Agreement, Closing and rental agreement, etc.
But, as I learned, if the attorney is determined, he knows that only a judge or a jury "determines facts". Simply showing the judge a Notarized Warranty deed is insufficient. Having a Notary do a deposition is insufficient. Contracts and documented proof are insufficient. The damages were claimed to be around $1,000,000 so you can see that if they prevailed and the attorney got 1/3 he'd be a happy guy. They expected me to "roll over and settle". I'm Irish. I fight. I don't settle, I take it to trial.
Over the course of the years it was dismissed, reversed, dismissed again, appealed, dismissed again and finally I won the case without then being able to reopen it. The whole point of the lawsuit from their point of view was expected to be a lottery winning. Yes, those kind of people are out there. One thing I never do anymore is let the seller stay in the property. If they aren't ready to move, I'm not ready to buy.
It didn't sour me on investing, I've made plenty of money on many, many, many other deals but it did make me start looking at investing as a business instead of a hobby which in the long run isn't a bad thing. In court he said he knew I was taking advantage of him because "of the Mercedes he drives". Obviously that had nothing to do with anything other than the perception that they could gets lots of money. Ever since, when I buy a house, I drive a car similar to the most common cars in the neighborhoods I buy in. I save the fancy cars for taking my wife out to fancy restaurants. Lesson learned.
@Account Closed that was an epic story. Thank you for sharing. I think I learned a lot just by reading that. Something like that would have never crossed my mind. I am shocked that the title insurance didn't kick in to your defense. Or maybe it did?
Really great share, thank you.
Mike S, I have plenty of schumbag Irish white guys who try to take advantage of the system to tell as well. Maybe I ought to write a book and make sure to emphasize the fact that they were all WHITE IRISH Scums