I made one real estate investment that failed as a fix and flip so terribly that it took 10 long years and much agony to sell the property. As a real estate investor, I had flipped eight properties before this one and produced a tidy profit along the way. Investing in properties can be fun and rewarding if you make good decisions and have a bit of luck. I hope this information will help you avoid the pitfalls that happened with my one failed fix and flip.
Believe In The Property
Every property purchased before this one was a house I really liked. This place was bought solely for investment to flip and make a quick profit. It was a solar design condo, and although the concept and low utilities appealed to me, I would not live in a condo personally. I like a nice yard surrounding me.
I made the mistake of buying something I did not like or believe in. The appraisal on this property showed a value of $69,000 and I bought it for $53,000. It only needed some paint and a roof leak fixed that was the responsibility of the homeowner’s association. Also, there was a pool area I could enjoy on the complex after my painting chores. A quick $10,000 profit looked to be made easily after some minor expenses.
Investigate The Property
I made a call to the homeowner’s association to fix the roof and got quite a surprise. Many of the roofs here leaked and I had to get involved in homeowner meetings. There were arguments with the neighbors, the homeowner’s fees doubled, and the complex was developing a bad reputation. I could not sell the property and decided to rent it and offer a great lease purchase agreement.
Each year for the next 10 years I would find a person that loved my option to buy deal and they all moved out after one year. They all left the property with more work to be done. It was like a continual fix and flip with the closing being a flop.
Find A Believer
I discovered a real estate agent that loved this complex. She believed in the property and that’s what it takes for a flip. I was convinced to give her a 90 day listing. She sold this place for me and died unexpectedly a short time later. May this believer named Doris rest in peace.