Our first flip flopped. Now what?

[Nicole Heasley Beitenman]

Hello BP! I need some consolation, wisdom, and maybe pizza.

My dad just completed his first flip. After all was said and done, he lost over $3k. We're not white collar people, so $3k is a lot to us. I tried telling him that $3k is a small price for the education he received, but all he can see right now is how hard he worked to lose $3k. He's discouraged and upset, and I'm both sad and annoyed that he's not seeing any of the positives. 

He's made comments about what he'll do differently for "the next one," but as convinced as I am that REI is the future for both of us, I don't know that flipping is wise for him. He took a risk and can't seem to accept that loss is part of the risk. His capital is limited, and now its been reduced. I believe it's around $40-45k now. He's getting older (54), his job isn't viable in the long term (he hauls trailers and campers. It's unhealthy, not rewarding, unsteady, and the expenses make it barely profitable) he's trying to find some magic path to high reward, low risk.

Obviously, he made a lot of mistakes that he knows not to repeat. In addition, I'm now active on BP; I wasn't when he first started. But I won't know how to deal with him if he tries again and loses more. Maybe our market isn't right for flips. I don't know what we do from here other than spend some time on BP, learn about different ways to get into REI, and find out if there's a better one out there. I'd love for him to help me with my long term plan (become a full-time landlord through SFH, MFH, and vacation rentals primarily through buy and holds, using rental profits to save up for more downpayments on more houses, then bring him on as property manager).

Sorry if this is jumbled; I feel jumbled. I will say that the stress of having this off our shoulders and not have to hear him stressing out about it every single day is almost worth the $3k to me. 

[Brady Durr]

The deal is not the problem. The problem is you are only running numbers for 1 exit strategy which is selling on MLS. As a rental, you could have $7K a year from the rents. With seller financing (10,10,10), you could have $6K per year from P&I. Land contract would net even more. You could sell the debt in 12 months for 85 cents on the dollar and get your capital out. Multiple exit options help turn coal into diamonds. No doubt your next deal will go smoother, but until you learn your options on the finance side of RE, your options are limited.

Yes, the $3k he lost was worth more than $10K in guru training.  He took action where others buy training and do nothing with it.  Tell your Dad to listen to Earl nightingale "the strangest secret" every day for one month.  Also read cash flow quadrant.  "Success is the progressive realization of a worthy ideal"