Episode #966
Think you’ve got a bad real estate deal? We doubt it comes even close to what we’re about to share. Today, the experts are in to talk about bee-infested rental properties, risky flips, “wholetail” failures, and other ways that they’ve lost money with real estate deals gone wrong. Why are we sharing such horrific stories? Because we want YOU to be able to avoid the same fate on your first or next investment property. Take a seat, get some popcorn, and pray that your properties won’t turn out like this…
First, Henry Washington from the “On the Market” podcast shares his recent luxury flip…or should we say, luxury “flop.” This property was poised to make him up to a six-figure profit, but it didn’t work out that way. One simple mistake ruined this real estate deal and forced Henry to slowly pay away all his profits to a hard money lender. Next, our own Rob Absolo talks about the dangers of NOT looking at the comps when doing a “wholetail” deal and how you could easily find yourself with a home worth less than what you put into it.
Finally, the deal of all horrible deals comes out…David Greene’s deal. Where do we even start? Permit problems, mold, bee infestations, and NO way out—this short-term rental gone wrong is costing David hundreds of thousands of dollars, and with little light at the end of the tunnel, he may be forced to do something drastic. So, how do YOU avoid these nightmarish real estate deals? Stick around so you know exactly what NOT to do.
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Listen to Henry on the “On The Market” Podcast:
https://link.chtbl.com/OTM
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How to Exit a Real Estate Deal Gone Bad:
https://www.biggerpockets.com/blog/2016-07-22-exit-bad-deal?utm_source=youtube&utm_medium=description&utm_campaign=none
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What to Do When a Deal Goes Sideways (Hint: Don’t Panic!):
https://www.biggerpockets.com/blog/real-estate-deal-goes-sideways?utm_source=youtube&utm_medium=description&utm_campaign=none
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Connect with Henry on BiggerPockets:
https://www.biggerpockets.com/users/henryw22?utm_source=youtube&utm_medium=description&utm_campaign=none
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Connect with David and Rob on BiggerPockets:
David: https://www.biggerpockets.com/users/davidgreene24?utm_source=youtube&utm_medium=description&utm_campaign=none
Rob: https://www.biggerpockets.com/users/robuilt?utm_source=youtube&utm_medium=description&utm_campaign=none
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Connect with Rob (Robuilt):
Instagram: https://www.instagram.com/robuilt/
TikTok: https://www.tiktok.com/@robuilto
X/Twitter: https://www.twitter.com/robuiltchannel
YouTube: https://www.youtube.com/c/Robuilt
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Follow David and BiggerPockets on Instagram:
@davidgreene24 or https://www.instagram.com/davidgreene24/
@biggerpockets or https://www.instagram.com/biggerpockets/
Show notes at: https://link.chtbl.com/BPRE
00:00 Intro
01:24 A Risky Luxury Flip
06:02 Final Numbers and Exit Plans
09:19 Henry’s Mistake
11:14 An Overpriced Wholetail
15:04 Rob’s Mistake
23:23 The City Ruined My Real Estate
32:43 David Lost HOW Much!?
36:19 How to Avoid This
39:07 Do We Regret It?
