Everything Went Wrong, But His Rentals Still Made Money With George Roberts (Ep 507)

Rental Income Podcast With Dan Lane

Rental Income Podcast

Business, Investing, Entrepreneurship

4.9 • 805 Ratings

🗓️ 4 February 2025

⏱️ 20 minutes

🔗️ Recording | iTunes | RSS

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Summary

George's first deal didn't work out the way he planned.

Construction cost more and took longer than planned, mortgage rates went up, and insurance was higher than expected. However, the property still ended up being a great deal. It still cash flows and has been appreciated nicely.

In this episode, we review what went wrong and figure out why everything still worked out.

We also talk about how George accidentally started investing in real estate when he couldn't sell his primary residence.

http://rentalincomepodcast.com/episode507

Transcript

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0:00.0	Inspiring interviews with today's top landlords.
0:04.7	This is the rental income podcast.
0:07.6	And now, Dan Lane.
0:09.8	George, you bought a small apartment building.
0:12.2	The numbers looked great on paper.
0:14.2	It looked like you were going to make a bunch of money.
0:16.2	It was going to be an incredible deal.
0:18.5	But things didn't go exactly the way that you thought they were going to go.
0:23.4	Can you tell us what happened?
0:25.1	So there were a few things that went wrong.
0:27.0	We had some construction cost overruns.
0:31.4	We overrun with time.
0:34.2	Interest rates went way, way up on us.
0:41.0	And then the insurance market in Florida really employed it.
0:47.5	But we were able to deal with all those things because we bought something at a great price with way undermarket rents, and through the entire process, we were actually able to double the
0:54.0	rents along the way.
0:55.8	So I think the big lesson there for me is margin of safety.
1:00.5	If you buy right and you have some margin of safety in your plan.
1:05.6	So, hey, if things take a little longer than you expect or you can't refinance out at the at the price you expected that you're
1:12.9	still going to do just fine. I love that about rental properties. You can make a lot of mistakes. A lot of
1:17.6	things can go wrong. But in the long run, things usually work out. And on the show today, we're
1:23.1	going to walk through what happened to George, how we overcame those challenges, and how this ended up
	...

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