Real Estate Nerds 56: "Unexpected Expenses" with James Masotti- Bad Beats

Real Estate Nerds 56:

Bad Beats

"Unexpected Expenses"

James Masotti
Real Estate Investing Expert
Real Estate Nerds
Episode 56: "Bad Beats"

Listen to the Podcast Here:

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.

Unexpected Expenses

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

 

Listener Resources

Thank you for joining us on today’s episode of the Real Estate Nerds Podcast. For even more free educational resources on real estate investing and the law, check out the Royal Legal Solutions blog. You can also reach our host Scott Smith directly, connect with him on LinkedIn, subscribe to the Royal Legal Solutions YouTube channel, or join our investor community on Facebook.

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Hosted by Scott Smith, Lead Attorney and Founder of Royal Legal Solutions

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About James Masotti

James Masotti has been investing in real estate since 2010 when he converted his primary residence in Wilmington to a rental. James’ full-time occupation is as a supply chain professional. He currently works for a $1.8B Belgian food company as the US Demand Planning Manager.  

James has also previously worked in logistics, warehouse operations, supply and demand planning, procurement, and the implementation of software systems for Amazon.com, Campbell Soup Company, Perry Videx, and CSB-System International. James is recognized leader in the supply chain profession having presented at conferences in the United States and South Africa. James has been an active volunteer in the supply chain profession since 2011 and has greatly enjoyed being a regular guest lecturer at several universities on supply chain topics. A former Big Brother for Big Brothers Big Sister, James is looking forward to continuing as an active volunteer for the organization now that his Little Brother has graduated high school. James currently lives in Washington Township, New Jersey with his wife Kaitlyn and their dog CJ.

Connect

Connect with James via his email:

  • james.masotti@quellecap.com

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