i lost 200k on this fix and flip…

This property right here lost me over $200,000 in one single deal when I first started. So in today's video, I'm going to be going over the most common mistakes that people often make, the mistakes that I've made, and why losing all this money could have been the best blessing in disguise in my career. So if you stick until the end of the video, I'm going to walk you through exactly what not to do and how, if you're still wholesaling and flipping, I'm going to tell you what I believe is the best way to wholesale and flip nowadays so that you don't risk a ton of money or lose money like I did. So where did it actually go from? It was actually the first property I ever bought when I first got into real estate. And I bought this property off of the MLS in 2022, which is when everyone was crushing and everyone was making a killing. I knew that I wanted to get into real estate, so I actually raised capital to purchase this property along another one that is across the street. So my first two deals were losses, and I had raised capital in order to acquire these deals. And it wasn't until my third deal that I was able to make $70,000 in profit, uh, while I was still kind of rehabbing these properties. So what happened with this deal? I actually bought it for $165,000, and I thought that I would only need around $50,000 to remodel this whole property. But everything that could have gone wrong pretty much went wrong. I had contractors steal from me. At the time, my dad was, you know, dealing with some health issues that required my attention, and I didn't do a lot of things right when it comes to the rehab. And also, the realtor that bought me this property said that he had project management experience, which, you know, that ended up costing me a ton of money. But the main thing that What happened was I thought that I was going to be able to sell this property for around $300,000, but in the midst of remodeling the property is when interest rates went from 2% to like 7% in a matter of months. So all the values plummeted, and I took forever to pretty much finish the rehab. Uh, so that is the context of how I lost all this money, and I've owned this property ever since. But if I look at my journey, this loss was one of the main blessings because it forced me to become a better entrepreneur. So that third deal that made me $70,000. I actually put that money into coaching because I figured out like, hey, I need to find a way that I can still make money wholesaling and learn exactly how to run this as an actual business instead of relying on deals like this in order for me to make my money. So that third deal, I put it into coaching, and the following year I was able to make $80,000— I'm sorry, $800,000. We did like 40 deals my first full year wholesaling and flipping. And I want to go over kind of like the main things that I see because I feel like a lot of investors forget that this is a cash flow business where the only thing that actually matters is how much money do you actually net at the end of each month, you know, month after month, without having to have a huge operation where you are spending a ton of money in marketing and have a huge team. Because I had the big business, we were spending $30K or $40K a month in marketing, and of course we were making a lot of money, but I felt I wasn't able to net a lot of profit in, you know, on a month-to-month basis. So after having a big operation and spending all this money in marketing, the main thing that I focus on is just trying to net as much as possible, where it's pretty much what everything I talk about with the channel. We know how to get leads, we know how to convert them, we're able to wholesale. And I just want to encourage you, if you are good at wholesaling or flipping, you don't need to listen to somebody else in order to replicate the business. Because I was doing really good wholesaling as I was kind of growing my businesses throughout the couple years, but one of my coaches was telling me like, hey, you still need to flip houses if you want to maximize your profit. Which, you know, kind of makes sense, right? But my average deal size was like $22,000 when I was wholesaling, so I didn't really have a need to flip. But throughout 2023, 2024, I still flip houses even though I wasn't that good at construction. So I could have just focused on my lane and didn't have to drag all these losses. So I felt like ever since I started real estate, I've had losses like this. And before real estate, I wasn't making much money, so all the revenue that I was making was going back paying my investors the money that they lent me to flip the houses. And as you grow your business, you are going to mistakes. Because remember, when you start something, you don't have a lot of context and you're still very green within the business. So for me, I wasn't good at cash flow management. I thought that everything that we were making was profit, but that comes with time and experience to be able to know exactly how much do you actually net and how much you actually make and how much money you have saved in order to keep on running the business. But all these years I've learned a lot, and you know, these lessons have been painful. And at some point in your business, shit's gonna hit the fan. So how are you going to respond when Things go wrong because they will go wrong. So you pretty much are going to have two choices. You either going to let this break you and you're going to quit, or you're going to become a different person once this is all said and done. So pretty much what I had to do was make new money so that we can keep on running the business and pretty much pay back what I owe. And if you are still like flipping and wholesaling, the best way that we like to get deals is we just market to motivated sellers by using Facebook ads. And since we know what works with the ads, we're able to call out our specific Seller, who's a specific seller, someone that is motivated to sell. They may be going through foreclosure, inheritance, divorce, problem property. So if we have a way of finding those people and we have a good sales process, then we can convert way more deals, which if you're making between $15,000 to $20,000 per deal wholesaling, you don't need to really flip. And you only take on the best deals that actually make sense, but you can make 3 to 4 times as much if you would've just wholesaled the property. So what we want is to not risk as much money in order to make a profit, because if you can spend between $5,000 to $10,000 a month and you can turn back $60,000 to $100,000 per month, that is a really good business. So don't listen to people that say that you need to scale to the multi-millions per year because that is going to entail having more expenses, more team, and more headache. And as we already know, with real estate, nothing is set until a property sells. And that is one of the things that I don't like about real estate wholesaling. You still rely on buyers buyers, lenders, title companies, appraisers, inspectors, and the deal's never done until the money hits your account. So you need to be really good at the different funnels of the whole big business, right? Acquisitions, dispositions, customer relationship with the seller, buyer relationships so you can actually sell deals, marketing, and cash flow management because it takes money to actually grow the business. So if I wouldn't have gone through all this loss of flipping, I would be in a way, way better spot. And I know a lot of my friends lost millions of dollars flipping houses, which I don't want you guys to go through the same thing. This is why everything on the channel is about actually netting more money and not overcomplicating the business and just focusing on building a business that actually serves us. And after doing this for the last 4 years, one of the main big openers that came for me was like, okay, like all these people out there preach that you need to do cold calling, that you need to use an agency to run your marketing, that you need to do SMS because you are not smart enough to learn how to my own marketing, which when I learned how to do my own marketing is when everything changed and we're able to net multi-six figures per month. But when you go through shit like this, it really teaches you a lot and it humbles you. So, you know, you got to be grateful for the good years. And when shit goes wrong, you need to have a plan into how do you get out of it. Because if I've been able to have a ton of success before, you'll be able to keep on doing it. So, you know, all this to say is if you can control as much from the whole pie when it comes to the marketing, the sales process, dispositions. That is what's going to give you an outsized return for the money and time that you actually spent within the business. And I don't want you to take my mistakes as like a one-way all, like, hey, you shouldn't flip or do this or the other. It should just serve you as some context of someone that has actually gone through this, because a lot of people on social media, they only post the highlights, and like, nobody cares about that. So the goal with the channel is to tell you exactly what is working, how I've messed up, and the best ways that you can go about the things that I've gone through, that way you don't make the same mistakes that I made because, like I said, if I wouldn't have gone through those things, I wouldn't have learned and I wouldn't have the experience to teach and coach like all the clients that are currently crushing. So in the end, I just want you guys to control as much as you can. And if you can pretty much do the marketing how we do it and have all these videos on the channel, and you can engineer the deal flow by tracking your numbers and focusing on ROI and actually, you know, netting way more money instead of just chasing deal after deal like all these different gurus tell you, and instead of having to do the traditional outbound methods with the marketing relying on an agency, just know The more that you control within the business, the more money that you will actually be able to net. And over the last couple months, I wouldn't lie to you, like, it's been hard because I just had to refinance this property around October. And throughout the whole last year, we're doing really well, but when I have to cut this check for this property so that I could own it, you know, long term, I had to cut another check for this other property, and pretty much just made me very sour within the business. I just felt betrayed by the whole industry, uh, but I shouldn't be because it was all my fault. Uh, but what that prevented me from doing was to show up with the team, and we actually started tolerating people not being A players. And it was all my fault because I couldn't physically bring myself to the business to show up the way that I have done before, and where we were crushing and getting all these deals to make sure that stuff actually got closed. So the last couple months, I was just kind of in my feelings and in this very bad mental state because I just feel very, very sour and hurt that this happened. But if you are someone who has been dealing with losses, or maybe you went through something similar, or you're experiencing some of the things that I covered, just know that we have a way of getting out of it. And the thing that we need to do is, okay, we need to compile what is going wrong. How much money do we need to pay back? And having the plan where all the money that we make pretty much goes back to regaining the money that we lost. Because if we've done it before, we can keep on doing it again. So my main goal right now is just to finish paying everything. That I owe with my lenders and then just focus on crushing. Because, you know, this week we got like 4 deals and mentally I'm ready to just kind of get back in here and start crushing again. And I'm done feeling sorry for myself. And, you know, sometimes God tests you and it's what's required for you to evolve to that next level. And that is what it's required, right? So if I wouldn't have gone through this painful lesson, I know that he's preparing me for that next level and next chapter. And this is going to be a story that I will one day tell. And yeah, like, I don't know, I lost hundreds of thousands of dollars. I've also made millions. So in the end, I would say that's just life. And the only choice that we have is what do you do when shit goes wrong and who are you and how do you respond with adversity? Are you going to give up or are you going to give it your all to make sure that that doesn't happen again and we actually learn from the mistakes? So if you enjoy the video and you stayed until the end, thank you so much for watching. Uh, just know that if you're going through this, you can get out of it. And if you want to scale your business the right way so you don't make the mistakes that I've made, or if you want to get a more consistent deal flow scale the right way, click on the link in the description down below. I'm going to help you scale to $50,000 per month the right way by owning your own marketing channel and by getting better at sales, and for us to be able to make way more money per deal. So if you're interested in hearing how we help you scale, click on the first link in the description down below, book a call with me and my team, and I'm going to make a custom plan in order to help you scale the business the right way. But with that being said, that is all for the video. Hope you enjoyed it, and thank you for watching.