A first-time house flipper is $40,000 over budget after hiring the cheapest contractors and managing the project alone. Toby, a lender and flipping coach, explains that cutting corners costs more than it saves, and offers to assess the site, coordinate with contractors, and find additional funding to salvage the deal.
This is Toby. Can I help you?
Hi Toby, I'm sinking. My first flip, I'm already $40,000 over budget.
Oh my goodness. What do you mean you're $40,000 over budget? What's going on?
Thought I could handle it myself. I did no coach, no partner, hired the cheapest contractors, tried to manage the schedule. Now I got open walls, the money's gone, and my buyers are backing out.
Oh, all right. So this is exactly why I tell people flipping isn't just about buying the cheap and selling on the high. It's kind of a chess game. You really have to know exactly when to move, what to move, and how to move. I thought I was saving money. You save pennies, but you're going to lose dollars, right? We can come in there and try to see what's going on, but let me step in as a lender and as a coach and help you get resolution to this deal.
So there's a chance I could still save this?
There's a chance we can save anything. I just don't know how bad the bleeding is, and until we can get in there and see exactly what's going on, I can't make any promises. But what I will do, since you're such a loyal customer, let me come in there, see what's going on, get with the contractors, see what it's going to cost, and then see what we can do on getting you some additional funding. Okay, let's do it. All right, let me, uh, send over a calendar invite. Let's get on a call with everybody, and then I'll schedule a call to come out. Okay? Okay, thank you. Thank you. Bye.
