How much money did Codie Sanchez say she lost on her first deal?

Codie SanchezFounder @ Contrarian Thinking

3 Mistakes To Avoid When Doing Deals #shorts

11 Jun 2023 · 1 min

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A short YouTube video by Codie Sanchez recounting a failed first investment in which she lost $50,000 and the three mistakes she attributes to that loss: doing a deal with a friend without clear expectations, investing in an industry where she had no unfair advantage (a food company), and failing to set explicit terms/term sheet. The clip emphasizes starting with the end in mind, preferring contracts over 'hopes and prayers,' and investing where you have an edge.

Questions this video answers

$50,000

Chapters

First deal I lost 50k at. There's three things I did wrong. One, this deal I did with a friend. And anytime you do a deal with a buddy, you have to set expectations. Just like you're getting married, you have to start with the end in mind. It's hard when business comes between friends. Friends is friends. This is business. The second thing that I did wrong is that I invested in an area that I had no unfair advantage. It was a food company. Food is complicated, it spoils constantly. And I knew nothing about it. So I thought, hey, first time investor in an area I know nothing about. Seems like a great idea. Turns out it's not. And then the third thing is I didn't set expectations really clear clearly on what I wanted out of the deal. So in our world, this is called a term sheet. Basically, like, I get my money back in this amount of time you do this. If you don't do this, I have this happen. Most people invest their money based on hopes and prayers and not based on realities and contracts. The latter is better.