How I Lost $50K - House Flip Fail - Before and After, All the Numbers, Mistakes

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Күн бұрын

How I lost $50k - House Flip Fail - Before and After, All the Numbers, Mistakes
This was my first and so far only house flipping loss. It's a painful experience to lose money flipping houses because of all the work and money that's invested in the house flip. This house flip before and after 2020 shows you how I got the house flip, before and after home remodel, house flip numbers, and house flipping mistakes to avoid. This house flip gone wrong video will tell you how to avoid house flipping risks and how not to lose money flip house.
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Join my program, Transform Flipper Academy, to learn to flip houses the right way. As a house flipper of 6 years, I've flipped over 50 houses with a six-figure profit on average. I hope to teach more people about the ins and outs of house flipping so they can get out of the rat race and achieve financial freedom like I did. Apply here:
www.transformflipperacademy.com
You can also purchase my book Flipping Houses Quickstart Guide on amazon:
amazon.com/dp/1636100309/?tag...
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If you are a house flipping beginner interested in fix and flip houses, this before and after house renovation will give you a good idea on how house flip numbers work, and how to avoid house flipping mistakes, so you can master house flipping in real life and not lose money flipping houses.
#houseflippingloss #realestatecoach #houseflipping
Watch next: House Flip Before and After - $300K Profit - House Renovation & Garage Conversion with Numbers
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Пікірлер: 120

@TransformRealEstate 4 жыл бұрын

Watch Next: House Flip Before and After 2020 - $300K Profit - House Renovation & Garage Conversion with Numbers kzfaq.info/get/bejne/eK2nn8l4s8m2oqM.html

@carriehayden7402 4 жыл бұрын

I like this so much more than HGTV. Everything I love about house flipping shows without the artificial drama and scripted nonsense.

@TransformRealEstate 4 жыл бұрын

Awww, thank you so much for the kind words! You made my day! You are right, house flipping is fun even without any artificial drama 😀

@kristypickett5897 3 жыл бұрын

I agree! She is a great speaker, gets to the point, keeps videos short and sweet, and isn’t cheesy... all while giving good info

@kaosperez444 3 жыл бұрын

Im 34 and my brother 42 weve been house flipping for 11 yrs oh we also own 4 paid out rentals. What ive learned over the years. 1- cheap labor can turn out to be expensive. 2- dont be afraid to get your hands dirty 3- make sure you have a contractor lined up because time is Money if you are getting a loan. 4- make sure you have EXTRA CASH!! Now my brother and i do 80% of labor and we still have our fulltime job oh i almost forgot dont be afraid to lowball because when you sell people are also going to low ball you

@gregoryclark7566 Жыл бұрын

Another idea is to get a real estate license. You can then access the mls database and get a jump on other flippers.

@michelleyiu 4 жыл бұрын

It is not easy to share this kind of story, I applause you for your courage and transparency. Please keep up your good work :)

@TransformRealEstate 4 жыл бұрын

Thank you so much for the encouragement, Michelle! It was difficult to lose money, but it made me stronger :)

@manchesterexplorer8519 2 жыл бұрын

The problem with house flipping is that its become a trend . There's to many people at house auctions bidding up the price for a junk house . 10+ years ago it was fairly lucrative . I'm a carpenter / painter I often end up making more money in the same amount of time than the flipper . Also 90% of Flippers have no clue what they are doing .

@stephenjcharles6755 2 жыл бұрын

Thanks for the "Flip" transparency - Similarly, I lost 60k on my first flip by being too optimistic - the inside walls don't lie 😢 Mistakes are the best teachers!

@louislin5358 3 жыл бұрын

This whole story was told beautifully and the lessons were very well explained! Thank you for sharing this. I'm 24 and trying to learn as much as I can before I purchase my first rental property and your videos have been super valuable for me.

@Indian-girl09 3 жыл бұрын

I like how she explains herself she’s not giving you all glory she’s giving you the dirt as well

@naoh619 4 жыл бұрын

I appreciate when people share the good and the bad of the business. Successes and losses go hand in hand in every industry. But online now a day you rarely hear people tell their loss.

@TransformRealEstate 4 жыл бұрын

Thanks Hoan! It's not easy to share losses and be vulnerable, but like you said, successes and losses go hand in hand and losses are the best teacher. Let me know if you'd like to see anything else in particular on my channel :)

@DarkStrado 3 жыл бұрын

@@TransformRealEstate your team! Who's all the people on your team, who joined first, how did you find the rest!

@Majitsu Жыл бұрын

These loss videos are the most valuable gems on this channel.

@successwithstacee9290 3 жыл бұрын

The rehab and staging is beautiful. Thanks for sharing this and your mistakes. It sounds like you're still extremely successful.

@Swordyfiish 3 жыл бұрын

Thank you for sharing this! It was extremely informational and very humbling. I actually bought my current home in March/April 2018 and it JUST got back to its original value.

@TransformRealEstate 3 жыл бұрын

My pleasure! Glad to hear you found it helpful! Not sure where you are located, but the Bay Area market definitely took a dive in 2018. Glad your home went back to the original value - home prices always go up in the long run ☺️

@cheerssteph 3 жыл бұрын

It's really nice that you are telling us about the failures too. Thanks for sharing!

@deborah6972 2 жыл бұрын

Thanks for being real, and brave and honest and for your heart for encouraging others to succeed ❤️

@Jen-jo5qu 2 жыл бұрын

Thanks so much for sharing this. I needed to hear this today!

@ApocolypticDonkey 3 жыл бұрын

I appreciate the transparency! I learned so much from this video.

@SusanKosoma 3 жыл бұрын

Sorry for your loss and thanks for sharing with us your experience.

@MsEri17 4 жыл бұрын

I've started watching and learning and I love that you share your lessons and are honest and vulnerable about it. Thank you very much! :)

@TransformRealEstate 4 жыл бұрын

Aww, thank you so much for your kind words! I'm so happy that you found it helpful :)

@dblendzm439 3 жыл бұрын

currently 17 and trying to soak up as much as I can but thanks for educating on the right and wrongs !❤️

@selennecabrera6666 3 жыл бұрын

I love all your videos, not trashy or vulgar or loud mouth, you are just so calm, classy, and simple in a good way.

@craiggillett5985 3 жыл бұрын

Just found your channel, absolutely brilliant and this lessons learnt is so valuable

@millyqn 3 жыл бұрын

Omg! Love you and your show! You’re so inspiring! Hope you live in Boston so I can ask you to coach.

@KandiWrpr 3 жыл бұрын

Thank you for sharing. Helpful

@chiamaze 3 жыл бұрын

I don’t usually leave comments on the KZfaq but I really appreciate all the information you share! I have learned a lot. Thank you!

@myjunedayya 3 жыл бұрын

Great content! Thank you.

@edamouavang 3 жыл бұрын

I love watching your channel. The transformations are amazing. From dust to diamonds.

@fredsalfa 2 жыл бұрын

Thanks for that. I feel for you that it would not be nice to go through that. But thank you for your lesson as I had no idea about the 3 lesson you learned. Thankfully I can learn from them also 😊

@Real.Estate.Report 3 жыл бұрын

That’s a big loss, but awesome that you are being transparent and helping others to avoid this.

@TransformRealEstate 3 жыл бұрын

Thanks! I hope others can learn from my mistakes. Losing money is like paying tuition and it helps me get better at the game. :)

@lindap.p.1337 3 жыл бұрын

You are a great spokesperson plus a great house flipper. Love your videos.

@wkjeom 3 жыл бұрын

I'm impressed by your design skills as much as anything else.

@carolynknisely2383 3 жыл бұрын

Thank you for having the courage to share this. It helps!!

@TransformRealEstate 3 жыл бұрын

My pleasure! I hope my lessons can help others :)

@victoriajones9964 Жыл бұрын

⭐️Thanks for this ⭐️

@scratchbuilder5952 2 жыл бұрын

Appreciate the honest video

@mchanslam8313 4 жыл бұрын

Great video on flipping. I'm watching all your videos

@TransformRealEstate 4 жыл бұрын

Thank you! Glad you liked it! Let me know if you'd like to see any specific topics on my channel 😊

@vintagelvr4381 3 жыл бұрын

Your videos are wonderful and it's so refreshing to see you admit your challenges and learn from them. I'm learning too :o)! Thank you!

@sandrabollocks2535 3 жыл бұрын

ur so funny! you called the neighbors side yard ugly and said you wanted to hide it up, LMAOO... subscribed!

@bffpuspin7383 3 жыл бұрын

I love all your videos, they are so honest and sincere

@TransformRealEstate 3 жыл бұрын

Aww, thank you so much! I'm so happy to hear that!

@jenna08rae 3 жыл бұрын

I love your videos!!!

@DavidFlores-bn6ti 3 жыл бұрын

This video is amazing!! I’m a newly licensed agent and this is my main goal to be able to house flip!! Such awesome feedback!!

@brittanyshaw8717 3 жыл бұрын

WOW! Hard to believe that's the same house. BEAUTIFUL! I'd love to see the repairs being done.

@robertesperanza8580 Жыл бұрын

@TransformRealEstate thank you for sharing openly the truth on this deal. So informative. I feel this house had many challenges with the front yard, the interior, and the backyard all needing lots of attention. You had a lot to manage with this house! I'm sorry this deal did not go so well. So far I really enjoy your channel. Thank you for sharing your journey with us.

@lhrealestate5451 4 жыл бұрын

I plan to watch all your videos as I work towards my first flip, very good research and presentation.

@TransformRealEstate 4 жыл бұрын

Thank you! I'm glad you found my videos helpful! Let me know if you are interested in seeing videos on specific topics.

@perez1995100 Жыл бұрын

Good video!!!

@merycortes5142 4 жыл бұрын

At least you tell the truth 💯 I like this channel ✌🏽

@TransformRealEstate 4 жыл бұрын

Thank youI I appreciate your support :)

@kingal89 3 жыл бұрын

Excellent video and absolutely love your renovation style. I highly recommend you hire a licensed real estate salesperson to be on your team. There is no reason why you should be paying 6% in selling costs when you are flipping 8+ homes a year. Find a decent agent (not the best and not the worst) pay them a salary of 80k a year and have them handle all your sell stuff. This will save you tons and is why all the big developers have in house sales teams. They make less per deal but get lots of deals. Win win for both!

@anniekong9740 Жыл бұрын

❤❤🎉

@br8541 2 жыл бұрын

Am no expert but sharing a buyer's opinion. I think one of the other mistakes or rather aspects that slowed down the sale is the front facade that isn't the actual house entrance. First impression is everything and it starts from the curb way and front facade here it's seriously lacking waww factor because the front door is hidden. As always great work and remodeling the house, am addicted to your videos

@robertesperanza8580 Жыл бұрын

@br8541 I think that is wise insight about the location of the front door.

@rainbowcheeze99 2 жыл бұрын

The realtor was the one who made out like a bandit. Great video. I wish you all the best.

@henrystrainsandmore3546 3 жыл бұрын

Wow! The market is crazy there! Before the remodel, you could have bought that house for 100,000 where I live.

@TransformRealEstate 3 жыл бұрын

I know! The Bay Area market is very unique and expensive. The upside is margins are much higher than other areas too.

@svietka202 3 жыл бұрын

how honest and helpful of u. even though its totally not relevant for me (cause i live in Israel) i watched it to the end, not skipping a word. Great lessons

@TransformRealEstate 3 жыл бұрын

Aww, I'm so glad you liked my video! I imagine interior design would be very different over there?

@qsilver8926 4 жыл бұрын

Thank you for being honest. :)

@TransformRealEstate 4 жыл бұрын

My pleasure! People have to see the good and the bad to be cautious with this business :)

@johnklin9383 4 жыл бұрын

Nice remodel. Sorry you lost money! Go lessons learned though.

@TransformRealEstate 4 жыл бұрын

Thanks John! It was tough at the time, but I’m grateful for the lessons, and they helped me prevent future losses ☺️

@loreneseman2303 3 жыл бұрын

I bet if you had relocated the front door to the front of the house, it would have sold quicker and closer to asking price. Plus, you would have avoided the cost of the fence on the side. Who has a main entrance at the side of the house?

@victorialine5984 2 жыл бұрын

Relocate the door to the front of the house, what are you talking about? Look @2:26 and let us know where you suggest the new door should have gone. The fence on the side needed to be done since there was clearly something there before. You have to fix the obvious things.

@SuperFirebird3000 2 жыл бұрын

In Texas you could buy a mansion with that amount of money. Better off investing in the stock market with 12% return at least. Or buy multi family and rent out..

@kristenthorpe4279 3 жыл бұрын

How can you predict a market decline and do you have a video explaining the forumla you use?

@victorialine5984 2 жыл бұрын

No you can't. A decent renovation will take months, even without delays, and what looked like a sure thing when you started, can have disappeared by the time you get through.

@SeanPGribbons 2 жыл бұрын

Never lost money on the two dozen plus flips I’ve done. Over 3 million in net profits.

@hecklinjekyll3959 3 жыл бұрын

There you go, admit it and learn from it. 👍

@clairedelacruz3064 3 жыл бұрын

Are the furnitures included in the selling price? I always watch HGTV and wonder if the furnitures are inlcuded hehe I really enjoyed your video ☺️

@clairedelacruz3064 3 жыл бұрын

@Carol thank youuu ☺️

@victorialine5984 2 жыл бұрын

Those HGTV shows always stage the house, but it can be a distraction since you need to be able to see your own furniture in the empty rooms. In addition, often small furniture is used to fool the eye.

@monicarenee7949 2 жыл бұрын

I feel like the market is turning slightly just like in this story. I’ve been seeing obvious flips that were bought earlier this year and they’re trying to sell for a huge profit and those are starting to sit on the market for 60-90+ days.

@LOVRO.O 3 жыл бұрын

for this 97k budged for repare you can buy full 4 story house in Croatia

@tritonh5683 3 жыл бұрын

Crazy so see how much people will pay for a house at a decent neighborhood that looks like a 350k home.

@chulasexychica11 3 жыл бұрын

Why did you not rent it till market looked better?? Just wondering why management wasn't on your option nd buy out the brokers10% would your loss be more??

@elkuartostudio 3 жыл бұрын

Too expensive. You can buy that house for around 200k here in Illinois!

@oreed 3 жыл бұрын

How do you address unpermitted additions? How much does it cost? Is it difficult to get it permitted?

@TransformRealEstate 3 жыл бұрын

We just left it alone, and because it was built a while ago, the city allows it to be grandfathered in.

@victorialine5984 2 жыл бұрын

@@TransformRealEstate: that was a break because that is not always the case.

@maxart382 3 жыл бұрын

I have a question. Couldn't you wait for 6 moths or a year for market to get high? Because if you wait and get good price and a good profit than it is worth waiting.

@TransformRealEstate 3 жыл бұрын

If I waited, there’s no guarantee that the market would go up. And hard money loan is expensive.

@romano12345 3 жыл бұрын

Where do you get the Reno money from?

@TransformRealEstate 3 жыл бұрын

I usually use my own money for the rehab.

@arogyalohani 3 жыл бұрын

That home would be worth 250 here in Michigan !

@parkerchristopher4852 3 жыл бұрын

Thanks for sharing my friend, I really need to know if you have training class or looking for a partner

@vietkhoinguyen3125 3 жыл бұрын

I flipped one house in Sunnyvale at this time and I break even, the market dropped 14% the time I sold the house

@TransformRealEstate 3 жыл бұрын

Thanks for sharing your experience! Yeah, the market really took a big hit. Glad that you broke even though!

@passportmarc 2 жыл бұрын

The commission is where you lost big... It's ridiculous the amount realtors make off doing nothing. I love my realtor, but I just sold my house, he literally had nothing to do but fill out forms... I thin Ryan Pineda says something about getting a realtor to take a fix amount or percent since your doing so many a year.

@victorialine5984 2 жыл бұрын

The selling fees in North America are CRAZY. In the UK where I live, the maximum is/was 2.5% of the asking price. There are a lot of online agencies with a package that includes floor plans, photos and a liaison agent for an all in fee of under £1,000. The downside of online agencies, however, is that you have to conduct all the viewings yourself and lone women may be nervous about this.

@peggybuetow1026 2 жыл бұрын

Way too high asking price, but beautiful flip.

@verycoldice4 3 жыл бұрын

ohhh the partner would be mad

@youmen5085 2 жыл бұрын

👍✊

@minocastro816 3 жыл бұрын

How do you compete with flippers that have all cash, seven days closing no contingencies.

@TransformRealEstate 3 жыл бұрын

Hi there! That are the terms I offer too and you can easily do that with a hard money loan. Check out this video about Hard money: kzfaq.info/get/bejne/o8x0qayhnbXMgKM.html

@victorialine5984 2 жыл бұрын

@@TransformRealEstate: a hard money loan is punishing. The monthly interest is several thousand a month. That's enough to frighten off most people.

@franksuhuang6 2 жыл бұрын

👍👍🌹🌹

@gregoryclark7566 Жыл бұрын

This was a flipper's nightmare. I probably would have lost even more money than you did.

@jeanetteshawredden5643 Жыл бұрын

You don't mention the Covid pandemic in 2020. If your flip was done during this time, the US pretty much shut down. People were afraid to buy a house, jobs were in jeopardy.

@peggybuetow1026 2 жыл бұрын

Tooooo much grey…..

@joshlin8642 3 жыл бұрын

winner winner chicken dinner .

@billybill1272 3 жыл бұрын

Should have just kept it as a rental

@winterbalm 2 жыл бұрын

how can thid old house cost more than 1 million dollars? just tear it down and build a new stone house

@victorialine5984 2 жыл бұрын

Building from stone or brick is far more expensive than wood framing and plaster board.

@maxoblivion 3 жыл бұрын

You're cute.

@ashton8878 3 жыл бұрын

That doesn’t look like $2,000 in fencing.

@TransformRealEstate 3 жыл бұрын

Not sure where you are located, but labor and material costs are higher here in the bay than most of the country.

@rhynosouris710 3 жыл бұрын

Never, do not ever buy a flipped house. All you're buying is a lot of problems covered with fresh paint

@conniesisco6468 3 жыл бұрын

That is simply not true. I flip houses and always use high quality craftsmen and materials. My houses aren’t the cheapest but you are getting quality. It’s pretty obvious when you are looking at a remodel if it has been done right.

@rhynosouris710 3 жыл бұрын

@@conniesisco6468 Perhaps you do, but every fly-by-night flipper will make the same claims. Quality workmanship & materials cost money & takes time. That interferes with profit. The financial incentive for the flipper is to slap on some paint, & neglect to disclose any problems. A lot of faults & problems are not obvious to the novice home purchaser. The buyer is at a complete disadvantage. It's much safer for buyers to buy directly from an original owner, and make any necessary repairs themselves.

@victorialine5984 2 жыл бұрын

@@rhynosouris710: a novice buyer would be stupid not to do all the investigations beforehand. A home inspector can spot anything untoward. Not doing your homework is the biggest mistake a buyer might be about to make.