857: The House That Almost “Broke” Me: Losing $350K on ONE Property w/Mindy Jensen

BiggerPockets Real Estate Podcast

BiggerPockets

Education, Business, Investing

4.8 • 16.5K Ratings

🗓️ 14 December 2023

⏱️ 23 minutes

🔗️ Recording | iTunes | RSS

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Summary

Real estate investing can make you rich or ruin you financially…if you’re not taking the proper precautions. Today, you’ll see just how easy it is to lose money on a bad real estate deal and how even the top investors, those with decades of experience, still can end up in a rough situation through no fault of their own. And while both the investors featured in this two-part series have made millions in real estate, they’ve also had a couple of deals gone wrong that have cost them hundreds of thousands. In this episode, we’re talking to Mindy Jensen, host of the BiggerPockets Money podcast, about, as she calls it, “the house that almost broke me.” This property alone lost Mindy over a quarter of a million dollars, as she had to deal with crooked contractors, a once-in-a-lifetime flood, theft, and more. If you want to ensure you NEVER repeat the same mistakes as Mindy, listen to this ENTIRE episode before buying your next house. And next time, we’ll be on with James Dainard, expert flipper and co-host of On the Market, to talk about his house flip that makes Mindy’s look like a walk in the park! In This Episode We Cover How Mindy lost over $300,000 on ONE real estate investment The one “waiver” you MUST get signed before you hire a contractor DIY vs. hiring it out on home renovations and why Mindy does almost all her own work The “five-hundred-year flood” and the WRONG time to replace a roof Why you must have emergency reserves before you invest in ANY property And So Much More! Click here to listen to the full episode: https://www.biggerpockets.com/blog/real-estate-857 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	Welcome to the BiggerPockets podcast. Today we are going to be dropping into your feed with a bonus show. This is the first of two episodes about deals gone wrong.
0:09.4	That's right because David, if you can believe it, even to expert investors like ourselves make bad deals and we want you to learn from our mistakes
0:16.2	so that you don't go out and make the same said mistakes. That is right our heart wants to help protect you, your money, your future, and your wealth.
0:24.1	So we're going to be bringing you some mistakes that other investors made.
0:27.1	Today's episode will be Mindy, so you can hopefully avoid doing the same.
0:31.1	This is one of the toughest real estate markets that I have ever seen. It is much more
0:35.1	unforgivable than it's ever been in the past and the wrong deal can sink you.
0:38.8	That's right and on today's show we're going to actually be talking to Mindy Jensen about a deal that almost sank her quite literally and figuratively actually.
0:47.3	So without further ado, let's bring in Mindy. Welcome back. How are you two today?
0:52.0	I am doing great. Thank you for having me back. How are you today? I am doing great. Thank you for having me back, David. I am so excited to be bigger pockets biggest loser.
1:00.0	What did we talk about last time? My deal that was negative cash flow and now I'm talking about my deal that went wrong?
1:07.0	Yeah, that's one of our running jokes every time we do a show where we're like, all right, let's talk about everything that went terrible the dumpster
1:13.0	fires of real estate really Mindy and James that's our people these are bigger pockets
1:17.5	biggest losers the only time that you can brag about losing it's like all right
1:21.0	who here lost the most and it's like oh I've got a good one all right
1:24.5	Mindy how much did you lose on this deal how much did it cost you well my deal took place in
1:29.6	2006 was when I made my original ARV.
1:35.8	So I lost approximately 350,000 dollars on paper.
1:47.2	And so many hours of sleep and so much stress and so much anxiety over this deal that just took forever and now when you said ARV do you think you could just briefly explain to people what you mean by that
1:54.9	a r v stands for after rehab value or after repair value so this was the
1:59.6	projected amount that I thought this property was going to be worth after we had finished all the rehab we were doing
2:06.0	Got it okay okay great so a 350,000 dollar paper loss not bad pretty good David and I are going to run you through some rapid fire questions
	...

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