All Forum Posts by: Kay Sam
Kay Sam has started 7 posts and replied 39 times.
Post: Fix-and-Flip Investors: How Do You Protect Against Market Shifts Mid-Project?
- Posts 40
- Votes 12
I recently ran into this issue with a cooling market. Although I didn't know it was cooling as I entered, my realtor had suggested a lower list price initially. Then mid deal I found out I needed to keep DROPPING the price. So now moving forward, I'll ensure I go in with a conservative ARV number & work backwards like others have mentioned.
Even if the exit strategy is rental, sometimes that # doesn't work either from what I've seen thus far.
Post: Fix-and-Flip Investors: How Do You Protect Against Market Shifts Mid-Project?
- Posts 40
- Votes 12
Quote from @Shaza Atassi:
If the market cools mid-flip, I tighten my ARV comps and price more aggressively to move it faster. If the numbers don't pencil out, I pivot to a rental or creative financing exit—never just ride it out and bleed holding costs.
Quote from @William Whitley:
I really appreciate you sharing this so openly — many people in real estate don’t talk about the hard lessons, and it takes courage to do so. You’ve already gained valuable experience that will serve you moving forward. One approach that can be helpful is starting with the end in mind: working backwards from a realistic worst-case sale price, then carefully layering in renovation, holding costs, contingencies, and the return you need. That gives you the maximum price you can pay for a property, and if the numbers don’t work, the best decision is often to walk away. It’s tough in the moment, but it keeps the math on your side. Profit is really earned at purchase, not at sale.
You’re clearly resilient, and I believe your next deal will reflect everything you’ve learned along the way.
Hi! Thanks for weighing in. That's what I've been looking at is what's the lowest ARV that I can do in order to recoup. I surely have to be careful with my renovations; it added up quickly
Thanks for replying and sharing David. $60K loss I'm sure hurt like hell! Timing seems to be everything as I've seen how that hurt my deal that just cleared my books.
I've been thinking of the long term with buying and holding. However, I need to recoup some cash first and then hold. I've been wondering if there's a way to do both at the same time; hasn't seemed possible yet.
Quote from @Chris Seveney:
The key is to learn from your mistakes and not to continue to repeat the past. Fortunately my initial projects did very well, but absolutely have had stinkers. The key is to learn and move forward. You can't change your past you can only learn from it
Thanks for your reply Chris. I am surely moving forward, although hesitant, the next deal has to be a win.
Quote from @Diego A.:
Hi
Thanks for your reply Diego. Reading your profile I'd love to consult and get your feedback on how to scale and hit my target goals. Talk soon.
Quote from @Peter Mckernan:
Thanks Peter. I have heard that a few times about sticking to 1 market; therefore I will not be expanding outside of the Tx., FL area and surely not expanding from DFW to Austin etc..
I haven't partnered with anyone as I'm still networking and learning; hopefully soon. I've definitely come across some deals I've not been able to tackle as it was a bigger deal in general.
Moving forward in the DFW area I'll need to find an investor friendly relator who "gets it," and can be trusted boots on the ground there to help vet a deal. I already have some good contacts for GCs (from conversations), however that's to be proven once we start the actual SOW/project.
Thanks for your feedback!
I appreciate your words of motivation. I cannot move forward unless I acknowledge what went wrong.
Looking for my next deal at this very moment.
Doing a lot of reflection this week on real estate as a whole & my approach to fix & flips. This journey has been filled with various lessons to learn along with real time experience. I jumped into real estate 1.5 years ago & started flipping mobile homes- that was a bust for various reasons.Now I'm fixing & flipping SFHs & this deal I'm FINALLY getting to the closing table has brought me to my knees. In this 1.5 year, I've LOST $27K.....& that number hit very hard. This SFH flip was in FL. The next is Texas.
#1 this # is PERSPECTIVE & SUBJECTIVE! So to ME, that's a decent amount of cash. I've reframed my thought process to "okay losing 200-ish dollars when gambling is akin to having thousands & now losing $20K+." I know it takes money to make money... However- I HATE losing.
The ending of this deal has me wondering, do I KEEP going? I could list all the lessons I've learned, all of the extra fees that I NOW know will need to be added in, etc. but I won't. I know real estate isn't for the faint of heart & my skin is definitely in the game. My capital, although decreased, I still have enough to do it again & do it as RIGHT as I possibly know how to do with these expensive lessons I've learned. I didn't have a guru, I am self-taught.
My conclusion is, I'll do 1 more flip to recoup my money & build from there. This next flip has to be a win- otherwise I'll stick to what my MA is actually in.
My question to the BP community is, when you've lost BIG how do you stay in the game & motivate yourself? I want to hear a few war stories.
TIA
Post: I got robbed—and I didn’t even see it coming.
- Posts 40
- Votes 12
I can really appreciate this post. As a first year flipper in real estate; my 1st flip on a mobile home I was scammed pretty badly about $5K. So it's interesting & humanizing to hear that even flippers with 40 properties under their belt can experience the same. The key part you mentioned, which I also appreciated was, being under pressure & still reminding yourself to slow down.
Thanks for sharing.