House Flipping Couple

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This flip was early on in our real estate investing career. What our clients should take away from this real estate deal is that Mindset is not a result but a process. We were making the right changes in our Mindset to achieve our Long Term Legacy goals, but we still, need to continue down the Mindset change path.

A wholesaler contacted me with this deal. After paying him his fee, the contract was assigned to me. However, before the day we were to close on the house, the owner was arrested and placed in jail. The owner had just taken control of the property and wanted to get rid of it. Now the closing date had to be pushed out 30 days.

When the owner was in jail, someone broke into the house and stole all the copper water lines from under the house and tore up the walls to get the electrical wire. When I first saw the house I had estimated the rehab would be minimal, but now it just became a major rehab I had estimated that the rehab would have been 10K, now with the added damage the rehab had more than doubled to more than 20K. This could have been devastating to me because I was on the hook for the rehab cost. At the stage of the game, I did not have the 20K to make this happen, so I had to get creative, and I had to use “sweat equity”.

An example of how I got creative with this property, I reached out to some of the contractors on my team, and I let them know what had happened. They agreed to let me do the work under their supervision and would only charge me for their time. So you may have guessed by now who was sleeping on the job, It was me. I was working 13 hours days then going to this house and doing the work. One evening I was under the house doing some work. One minute I was working the next, I woke up and did not know how long I had been asleep under the house. Panic set in. Was I late for work? How long had I been out? It turned out to be only 30 minutes, but I still laugh about it today. I was able to do the rehab for 15K, and we sold the house for 55K.

Even though we did not make money on this deal, we did not lose any. We did, however, learn very valuable lessons. Mainly that when things go wrong, you can not give up, that is the easy way out, but if you want to achieve your Long Term Legacy, you will have to be determined to do the work to make it happen.