House caught on fire and insurance didn't pay!

[Boone Tyson]

Investment Info:

Single-family residence fix & flip investment in Mcallen.

Purchase price: $80,000
Cash invested: $40,000
Sale price: $104,000

Had it under contract to sale at 165K and it caught on fire on the day of closing! The money was en route to our account, we had already signed and had to stop the recording and the wire so that we didn't burn someone else's house down. After that, insurance wouldn't pay and we decided to lick our wounds and move on instead of trying to break even on it

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

Was a great flip. We were scheduled to clear about 35K and instead lost about 20K.

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

Wholesaler - paid what they wanted

How did you finance this deal?

LOC

How did you add value to the deal?

complete remodel and permitted extra living square footage.

What was the outcome?

Lost 20K

Lessons learned? Challenges?

Sometimes its better to take a loss and move on rather than letting ego make your decisions.
Get clear on what insurance is needed.
Know who you're in business with.