Real Estate Investing Expert
Episode 56: "Bad Beats"
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James is a part-time real estate investor and a full-time corporate supply chain manager with experience working for several big name companies. He joins Scott today to talk about his “Bad Beat’ and the risks involved with the investing game. He also talks about what he learned from the experience and what he does differently now.
James starts by talking about how he got his start in real estate and his current employment as a corporate supply chain manager:
[1:56] James talks about how he got involved in his “Bad Beat”.
[3:10] James shares some things that he now does differently because of this deal:
- Investigating deferred maintenance
- Emphasizing thoroughness on due diligence
[5:10] When James realized the deal may be going wrong:
- Over budget
- Fuse box replacement
- Foundation issues
[6:45] James discusses some issues they had with property management and his regret on not acting faster.
[9:00] Scott asks James if there is anything he would have done differently in his approach to this sneaky expensive property.
- Plan for a higher percentage on rehab and unexpected costs (due to older age of houses he works with)
- Have your eyes a little more “wide open” when looking into a deal
- Being more conservative on appraisal estimates
[15:08] James talks about a flip he did to recoup some losses on another property and the risk involved with investing.
[16:55] Scott talks with James about why he invests in older homes.
[18:06] Lesson James learned
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Hosted by Scott Smith, Lead Attorney and Founder of Royal Legal Solutions
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