cover of episode 384: Losing $60k on His First 2 Flips so You Won't Have To with Spencer Cornelia

384: Losing $60k on His First 2 Flips so You Won't Have To with Spencer Cornelia

Publish Date: 2020/5/28
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BiggerPockets Real Estate Podcast
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Shownotes Transcript

    <p>You can put a dollar number on the losses <strong>Spencer Cornelia </strong>took on his first two long-distance flips... but it's hard to quantify the value of the <strong>lessons he learned</strong> and is now passing on to you.</p><p>We noticed Spencer's <a href="https://www.biggerpockets.com/forums/847/topics/826344-my-first-flip-bankrupted-me-part-5">thread</a> detailing his struggles in the <strong>BiggerPockets forums</strong> and invited him on the show; he bravely accepted.</p><p>In this episode, you'll learn the pitfalls to watch out for when taking on heavy renovations (anywhere, but <strong>especially long-distance</strong>), how to ensure <strong><em>quality</em> wor</strong>k is getting done, and the dangers of <strong>letting projects drag on</strong> when you're locked into expensive short-term financing.</p><p>Plus, it's not a total downer... because Spencer's seeing a bunch of success with his new <a href="https://www.youtube.com/channel/UCV0OPCa5_LS8SWp118FRHIA">Youtube venture</a>, and <strong>plans to continue investing</strong> in (less aggressively leveraged) real estate projects.</p><p>Brandon and David add their own perspectives having made some similar errors in their careers, and tomorrow in <strong>Part 2</strong> they'll break down the <strong>10 Deadliest Mistakes Investors Make</strong>.</p><p>New investors: heed the advice in these two shows! And as always: run your numbers conservatively, know your own risk tolerance, and <strong>run deals by trusted advisors</strong> before jumping in.</p><p>In This Episode We Cover:</p><ul>
  • What went wrong with Spencer's rehabs
  • How to ensure contractors are doing quality work
  • Incentivizing team members and keeping them accountable
  • How much money he paid in interest and fees to his hard money lenders
  • Functional obsolescence and complications with older homes
  • Why you can't always trust an appraisal
  • "Home buyer turnoffs" and why it's easy to miss them
  • Why Spencer sold and took a loss rather than choosing another exit strategy
  • Why he's not giving up on real estate
  • How you can "go broke buying good deals"
  • And SO much more!

    • Links from the Show

     Check the full show notes here: http://biggerpockets.com/show384

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