Lost $40,000 on a Fix and Flip | Avoid These 4 Mistakes
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The YouTube video provides tips and advice on how to avoid mistakes when rehabbing houses and maximize profits. The speaker, who has rehabbed hundreds of houses, shares a personal experience of losing $40,000 on a deal due to several mistakes. The first mistake was buying a property with a unique factor, such as being on a busy street, which can hurt the chances of selling it. The second mistake was not taking into account the age and condition of the house before rehabbing it, resulting in issues with the foundation and slanted floors. The third mistake was rushing the project and not finishing everything to their normal standards, resulting in a half-assed job that wasn't up to their normal quality.
The speaker emphasizes the importance of being realistic in your after repair value (ARV) and budgeting properly for things, including accounting for holding costs. They caution against not putting all the proper numbers in your budget, which can result in unexpected expenses. The speaker also stresses the importance of taking into account the current economy and industry trends when rehabbing houses, including the uncertainty of the fall and winter with COVID-19 and the upcoming election.
The speaker provides expert tips, such as taking a pulse of the market, understanding that houses do not sell for as much in the winter as they do in the summer, and buying a property in the winter so that it can be listed in the spring and summer when there is more demand. They encourage viewers to learn how to rehab and run budgets, as it can help in various real estate investing strategies, such as wholesaling, fix and flip, and rental portfolios. The speaker also suggests checking out another video they made about buying their first rental property.
The YouTube video provides tips and advice on how to avoid mistakes when rehabbing houses and maximi