After 500 projects completed, still lose money on some of them when you lie to yourself or try to brake the rules

[Pavel Sakurets]

It is very important to stop running, doing deals, etc. and stop for several hours and analyze what you have done wrong and learn from your mistakes.

I have been doing rehabs, flips, wholesales for 14 years.

I  wanted to give you an update on 6547 Berkshire Ln Maple Grove. I though that I lost 10k on it, but after spending 4 hours investigating I found that I lost $1980 plus my time on buying and managing the project.

Here is the video of the house after it was fixed up where I lost money on first time this year:

https://www.youtube.com/watch?v=CSlQbR-Lz6Q

My rehab and holding expenses were 50k

Closing costs and commissions were 13k

I sold for $210,370 and bought for 150k

Mistake #1: I estimated ARV for 230k, but it only sold for 210k. If it would sell for 230k the Co would of made 18k

Mistake #2:Underestimating rehab and making changes that you didn't plan for.                  (I estimated rehab at 35K, but then decided to build an extra bath that cost me additional 15K) Thus, do what your originally planned, otherwise you will loose $.

Mistake #3: Paying too much for the property. If ARV was 230k and projected rehab was 35k, I needed to by that property for 126k, I broke the rule thinking what would happen, and lost 2k plus my time.

Thus I'm very happy that it was only a small monetary loss plus my time for finding, managing and selling.