Let's Talk About Our Screw-Ups!

[J Scott]

I originally started writing about real estate because I wanted to hold myself accountable for my what I was doing, because I wanted to learn from my own mistakes and because I wanted to help others keep from making the same mistakes I've already made.

Unfortunately, as time passes, I seem to spend less and less time writing about my mistakes.  Perhaps it's ego (I don't like to admit when I screw up), perhaps it's perceptions (I don't like others to know how often I screw up) and perhaps I'm making fewer mistakes than I used to.  Sadly, that last part probably isn't true...I still make LOTS of them...  :-)

Regardless, I believe that the best way to learn is through mistakes.  So, I wanted to start a thread where people could share the details of the mistakes they've made recently.  It can be mistakes during purchase, rehabbing mistakes, selling mistakes or any other mistakes you think will help others.

I'll start with three mistakes I've made recently (and the lessons learned):

1.  General Mistake:  I always leave a lockbox on-site with keys to the house.  This way, contractors can get in and out when they need to.  Unfortunately, as I've learned a couple times now, if you only leave one key at the house, it *will* get lost.  I was trying to get a house on the market today, but another contractor accidentally took the key to the house with him, and my punch guy couldn't get in today.  It would take me too long to get the spare key and get up to the house today, so we're basically going to miss our deadline.  Lesson learned:  Always keep a second key hidden around the property.  The main key *will* get lost/taken at some point and you're wasting both yours and your contractor's time by not having another one there.

2.  Inspection Mistake:  I had an inspection scheduled on a new construction foundation.  I forgot to set up a ladder for the inspector to have access to the basement, so when he showed up, there was no access.  He was exceptionally irritated (made a note that I "wasted his time"), which will likely hurt his impression of our project later and could make things more difficult for us.  Lesson learned:  Always make sure inspectors have what they need for inspections and if at all possible, BE THERE when the inspector gets there.

3.  Rehabbing Mistake:  When you pour a concrete foundation, if you want plumbing/sewer to come into the crawl space or basement area, you need to give the foundation guys the "sleeves" that they insert in the wall molds to create the holes for the pipes.  I was running late and didn't get there in time to get the sleeves in (I actually completely forgot).  My foundation guy basically laughed at me and said, "Oh well!"  Now, we'll have to pay the plumber to drill the holes and will take some extra risks with waterproofing the holes where the water/sewer lines come in.  Lesson learned:  Write things down.  Coordinate with contractors first thing in the morning on things they'll need for the day. 

Okay everyone...tell us about your recent mistakes and give us some good lessons learned...

[Darren Sager]

The biggest mistake I ever made was taking on a tenant because a "realtor friend" asked me to do her "a favor" while they were looking for a house to purchase.   She promised me she would notify me with plenty of time so that I could find another tenant easily however it was not the case.  The "realtor friend" didn't do what she said she would and the tenant moved out with little notice at the very worst time of the year for me to find a tenant (October). This led me to eat two months of rent.  The following tenant that moved in  I didn't scrutinize as greatly as I should and it led to my only time having to go to court and costing me more money.    Needless to say I would highly recommend not doing any "favors" for anyone that compromise your business standards because in many cases it can lead to trouble down the road. My lesson has been learned the hard way all because I did a favor that compromised my standards. Have your standards and stick to them!