1) They naively expected Class A results from the Class B/C/D property they bought.2) They didn't do enough market research to even know they bought a Class B/C/D property.3) They didn't do enough due diligence on the members of their team: agent, PMC, inspector, etc.

But if you're willing to take a tiny leap of faith, I think the returns are solid, the diligence and the integrity are there, and the states/markets/submarkets and the asset class are thumbs-up.

I've done some preliminary due diligence (as the lender) and feel I have a pretty firm understanding of how it works.

Take ownership of your mistake and learn to do the proper due diligence recommended above😊

Thanks,-Paul Big red flag is one that doesn't let you do your own diligence.

Through a wholesaler and we negotiated after doing thorough due diligence How did you finance this deal?

Take ownership of your mistake and learn to do the proper due diligence recommended above😊

Quote from @Devin James: Quote from @Dominic Mazzarella: Quote from @Devin James: Everything went wrong with this investment:   - Took 4 months longer than expected   - Cost $10K more to build than we anticipated   - Sold for $20K less than we anticipatedWe still profited with a 30% return on equityThis is why I love Real Estate InvestingWhen you do your diligence and stay conservative with your numbers, it takes something really bad to lose money.Here was the original post:My siblings and I are building a home in North Port, FL.Here are the numbers: - Finished Home Value: $412Kish - Land Cost: $19,750.39 - Construction & Permitting Costs: $304,897Additional costs: - Environmental Site Assessment - General Liability Insurance - Builders Risk Insurance - Construction FinancingWe will be listing the home this weekPhotos coming soon!! 

Here's my scenario.I am diligent about keeping my money in a 5% savings account until the end of the month, at which time I send 10k to a checking account in order to pay bills.

Hard money lenders are much more like banks and come with many restrictions, requirements, due diligence, fees, etc.