Flip #1: Long, Expensive, and Not Profitable

My first flip started when I was 21 years old, coming back home from college due to the onset of the Covid-19 pandemic. I was about one year into my education in real estate through Bigger Pockets, and was talking about real estate all the time. Eventually, my cousin came to my brother and I with a deal. We couldn't say no.

A family friend owned a 2-flat on the southside of Chicago, but was out of work and couldn't finish the rehab. So, my 2 cousins, my brother, and I jumped into the opportunity to fund the rest of the rehab. We committed $60k as a group, and all agreed to work "for free." The homeowner would also be working for free, so it was only fair. Then, when it was all said and done, the loan and investments would be paid off, and profit would be split 50/50. I was only in for $5k out of the $60k investment. We were hoping to be done in 2-3 months. Started May 2020, hoping to sell by August 1st.

Well, 12 months, $100k rehab, and thousands of man hours later, the house is finally listed on the market! It was a hell-ride, with this job consuming almost every weekend of mine for the past 12 months. The stress of dealing with a poorly managed project, late nights, and money concerns made this project terrible. Without the support and encouragement of the Bigger Pockets community, this project would have been my last real estate investment. However, I know that the mistake was in myself, my lack of planning, my lack of research on the market, and my lack of leadership in the project!

With that, after being on the market for a few days, it has no offers. It's on a busy street, next to an ugly house, with no garage. Although the inside of the flip is beautiful and the work is top-notch, it may not end up being a winner. If that's the case, I'm just glad it's my first deal and I can get it out of the way.

Here's to learning from experience and always treating real estate investing as a business!

-Zak