364: Making $115K From a Nightmare First Deal (Cops, Evictions, and Break-Ins!) w/Mitch Krotz

Real Estate Rookie

BiggerPockets

How To, Education, Business, Investing, Entrepreneurship

4.8 • 1.7K Ratings

🗓️ 7 February 2024

⏱️ 61 minutes

🔗️ Recording | iTunes | RSS

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Summary

Is the fear of “what if?” stopping you from investing in real estate? You could learn a thing or two from today’s guest. Despite a “nightmare” first deal involving every worst-case scenario imaginable, he still managed to come away with an enormous profit! Mitch Krotz had always wanted to buy a rental property, so when a great deal fell in his lap, it was a no-brainer! But then, seemingly everything that could go wrong did go wrong. Shortly after closing, Mitch was already evicting tenants and wading through trash in his heavily damaged unit. But that’s not all. Police showed up and discovered a grow house in the basement right before Mitch’s ex-tenants broke into the property. To cap things off, Mitch was hospitalized for meningitis during his DIY home renovations. While he had every reason to give up on real estate investing, his persistence paid off to the tune of $115,000 in profit. If Mitch can do it, you can too! Stay tuned as he shares some of the most valuable lessons learned during his painful first deal. For one, if you’re going to take real estate seriously, you need to manage it like a real business. Invest in systems, organization, bookkeeping, and other tools that will set you up for success! In This Episode We Cover: Mitch’s biggest lessons learned from a painful first real estate deal How to build an all-star team to help run your real estate business When to DIY home improvement projects (and when to outsource them instead!) Dealing with troublesome tenants and navigating the eviction process Why you NEED to allow room for error in your margins The “secret” up-and-coming market Mitch has identified for short-term rentals And So Much More! Links from the Show Find an Agent Find a Lender Ashley's BiggerPockets Profile Ashley's Instagram Tony's BiggerPockets Profile Tony's Instagram Real Estate Rookie Facebook Group Join BiggerPockets for FREE Ask Us Your Investing Question Apply to Be a Guest on the “Real Estate Rookie” Podcast The Step-by-Step Guide to Finding the BEST Off-Market Real Estate Deals How I’m HELOCing My Way to Wealth Should I Fix My Credit Before Attempting to Invest in Real Estate? Rookie to Real Estate Investor in 90 Days: LIVE Mentorship Calls 3 Steps to Start Investing in Real Estate + 2024 Mortgage Rate Predictions Achieving FI with Fewer Doors: The Small and Mighty Real Estate Portfolio Leaks, Surprise Rehabs, and the Reality of Buying Your First Rental Property Books Mentioned in the Show The Small and Mighty Real Estate Investor by Chad Carson Connect with Mitch Mitch's BiggerPockets Profile Mitch's Instagram: @krotzrocket11 Check the full show notes here: https://www.biggerpockets.com/blog/rookie-364 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email: [email protected] Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	This is Real Estate Rookie. Well, it's happened. BiggerPockets is putting me on this solo episode.
0:07.2	So we have no idea what's going to happen without Tony to rein me in on these episodes, but we are going to be here to listen to some nightmare horror stories so
0:18.0	throughout my years as a landlord property, and an investor,
0:23.2	there's been a lot of crazy things
0:24.7	that have happened to me,
0:25.8	and I've also heard a ton of other crazy stories
0:28.6	from different investors,
0:30.4	and even just joining the Real Estate rookie Facebook group or the bigger pockets forums
0:34.2	you'll hear some of these things that can happen and as a new investor some of these
0:39.2	things can keep you up at night but also stop you from taking action because you're so afraid of
0:44.1	that worst-case scenario. So what we're going to do on this episode is we are
0:47.6	going to hear all these worst-case scenarios that are going to happen or not
0:51.6	going to happen but could happen and you are going to know exactly
0:56.0	how to handle it what to do what your options are who you need on your team to make sure
1:01.6	you can either prevent this or how to handle the situation when it happens.
1:07.0	So sit back, relax, get into your coziest sweatsuit and we are going to hear some true horror stories.
1:15.0	Mitch, welcome to the show.
1:19.0	Thank you so much for joining me for a little therapy session today on some traumatizing deal that you had happened to you.
1:28.8	Yeah, thanks sash for bringing me on and working through this.
1:32.3	It was definitely an interesting project.
1:34.0	And you know, it's not always easy to talk about, you know,
1:37.6	something that has happened to you.
	...

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