Trust Results not partners

[Ben Pospisil]

Investment Info:

Single-family residence buy & hold investment in Dallas.

Purchase price: $235,000
Cash invested: $120,000

1915 Dallas Tudor. Completely rehabbed and rented. Plan to sell soon.

What made you interested in investing in this type of deal?

Referred by an agent who I no longer work with. haha

How did you find this deal and how did you negotiate it?

Agent found it. Gave great comps. ought it from an older lady who ended up moving into a nursing home. Not much to negotiate. She was pretty set on price.

How did you finance this deal?

Hard money.

How did you add value to the deal?

Updated everything. Turned a large bathroom into 2. Updated the carriage garage and pour a slab. Built a fence in the backyard and fixed the foundation.

What was the outcome?

HIt the market at a very low comp. price, but Dallas seemed to have pressed pause on anything over $400K.(mine was $450). Had to refi. out of the hard money into another hard money loan with lower interest and rent. Breaking even on this one. :(

Lessons learned? Challenges?

Dont trust partners, trust results. -Grant Cardone. I was new to Dallas when I bought this so I mistakenly trusted my agent to give me the worst case numbers on this fix and flip. Well he did. But they didnt match what the market wanted to pay.
Also, Im a buy and hold or wholesale guy, I had done 3 prior flips in dallas prior to this but 2 of the 3 I still hold as rentals and the other 1 I sold. I should have stuck to my plan/results and not deviated into a new model. Wholesale, buy and hold. :)