Long Distance Real Estate Flip

[Jordan Murrell]

So I chose Memphis for my destination to invest out of state. Studied the content on BiggerPockets, engaged in posts, read David Greene’s Long Distance Real Estate investing book a couple times over and take a leap of faith. Currently have a few properties in the Memphis market. Then I wanted to take on a flip project with my partner... Turns out the contractor has been doing a terrible job.

Had him send pictures and videos on the job weekly. Then towards the back end we weren’t receiving pictures or phone calls answered. We had made a mistake trying to do too much at this moment in time. Turns out 3/4 of the way through for the final finishes, his work became extremely sloppy. I had people pop their heads in checking up on the job and they let me know how poorly the finishes looked. We had to fire him as we are a couple months over the timeline and set us back in terms of wasted materials, time, holding costs, you name it.... yes we will be over budget.

I had 4 new contractors go out and waiting for bids back to complete the job. At this point, we are so deep into the project and they will need to redo a lot of the previous contractors work. I am not sure what’s the best solution is in terms of finishing it or selling. It’s a property with large potential upside in a great neighborhood of memphis in 38117 zip code. All and any advice would be much appreciated.