681: Real Estate Horror Stories: Navigating Six-Figure Losses, Stabbings, and Sewer Problems

BiggerPockets Real Estate Podcast

BiggerPockets

Investing, Education, Business

4.8 • 16.6K Ratings

🗓️ 30 October 2022

⏱️ 79 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

There’s a dark side of real estate no one talks about. Crime, destruction, theft, violence—you name it, we’ve dealt with it. With the spookiest day of the year coming close, we’re going to tell you all our terrible real estate tales. Everyone on podcasts and YouTube wants to show you how easy it is to invest, how it’s an assured path to wealth, and rarely what type of mistakes you can make. But we’re flipping the script, bringing in some of the best and brightest in real estate to show that the grass is usually greener where the septic tank is. Today’s guests, who have all collectively succeeded at failing, are Andrew Cushman, Jamil Damji, and Matt Faircloth. If you’ve been a BiggerPockets listener, these names may sound familiar to you, but if you’re brand new, let us introduce you to these industry giants. Andrew is a multifamily expert and one of the smartest names in the game on screening and underwriting (analyzing) properties. Jamil built the nation’s largest wholesaling operation and is an expert guest on On the Market. And Matt, CEO of the DeRosa Group, literally wrote the book on Raising Private Capital. But these titans of industry only made mistakes at the beginning of their careers, right? Not quite. They share today a selection of stories that will make you realize that the only successful investors are the ones who can both literally and figuratively weather a strong storm. And if you think it’s all cash flow and cruises for these investors, you couldn’t be more wrong. In This Episode We Cover: Why you should ALWAYS check out a property before you buy (and what happens if you don’t) Becoming the "Sheriff" of your investment and how contractors can easily take you for a ride 1031 exchange mistakes and how to negotiate with a seller even when you’re on a time crunch Always staying in your lane and trusting your gut when a deal doesn’t feel right Paying more for insurance and how to financially prepare for a natural disaster Why even with all the pain, real estate investing is the best wealth vehicle in the game! And So Much More! Links from the Show Find an Investor-Friendly Real Estate Agent BiggerPockets Youtube Channel BiggerPockets Forums BiggerPockets Pro Membership BiggerPockets Bookstore BiggerPockets Bootcamps BiggerPockets Podcast BiggerPockets Merch Listen to All Your Favorite BiggerPockets Podcasts in One Place Learn About Real Estate, The Housing Market, and Money Management with The BiggerPockets Podcasts Get More Deals Done with The BiggerPockets Investing Tools Find a BiggerPockets Real Estate Meetup in Your Area David's BiggerPockets Profile David's Instagram BiggerPockets Podcast 661 Vantage Point Acquisitions The DeRosa Group Jamil’s YouTube Book Mentioned in the Show: Raising Private Capital by Matt Faircloth Connect with Matt, Andrew, & Jamil: Andrew's BiggerPockets Profile Jamil's BiggerPockets Profile Matt's BiggerPockets Profile Jamil's Instagram Matt's Instagram Click here to check the full show notes: https://www.biggerpockets.com/blog/real-estate-681 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page! Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	This is the Bigger Pockets Podcast Show 681.
0:04.8	And this was a big one because we put the insurance carrier on notice the day before we got in line before everybody else.
0:13.8	You know, if you have a fire at your property, okay, you're probably the only one making a claim.
0:18.8	But if you're in a situation where a hurricane devastates 100 miles of coastline,
0:24.0	can you just imagine the volume of claims the insurance carriers are processing? We saw properties that sat untouched, unrepaired for two to three years,
0:35.1	because they didn't get their claim in fast enough.
0:38.1	What's going on everyone? I have David Green your host of the Bigger Pockets Real Estate Podcast.
0:42.0	Here today with a special Halloween episode brought to you by me and some of my good friends,
0:48.0	including today's co-host, Jamil Damjee. Jamil? Happy Halloween.
0:52.7	Happy Halloween, man. I'm super happy to be here and it's a scary, scary, scary show.
0:57.2	Yeah, it's a scary and fun show. So in today's show, we are telling real estate horror stories in the spirit of Halloween.
1:03.4	We're going to be joined by my friends Andrew Kuschmann and Matt Dirklop, as we all share things that basically deals gone wrong
1:10.4	and what we did to try to survive them. Jamil, what were some of your favorite parts of the show?
1:14.5	Oh, man, just how prepared Andrew is first and foremost. Secondly, Matt's hat, get out of here.
1:20.9	And third, you are the best sergeant slaughter I have ever ever seen.
1:25.8	Flotter, you'll get you nowhere, Jamil. That's probably not true.
1:29.0	This is my first time ever dressing up for Halloween and it's here with you guys today.
1:33.1	Before we bring in the show content, let's get to today's quick tip and it is.
1:39.3	It's very tempting to want a skimp on insurance and when nothing goes wrong, that can feel like a good idea.
1:44.7	But reconsider that. After listening to today's show, you may never want to skip on insurance again.
1:50.2	So make sure that you are underwriting thoroughly and preparing for what could go wrong, not assuming everything goes right.
1:55.6	Alright, before we move on, let's hear from today's show sponsors.
	...

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