Don't make this FATAL mistake‼️#realestate #multifamily #creativefinance #investing #shorts

The most expensive mistake I've ever made in real estate that resulted in total loss of a commercial building— not replacing or repairing the plumbing. That galvanized steel pipe, they are past the end of their usable life. So when I'm buying a project like this, one of the first things I look at is up in the ceiling, almost all PEX. We have a little bit of galvanized, so the first thing we're going to do before we open the building back up is we're going to rip out all that galvanized, bring it to PEX. Electric's already been upgraded through most of the building here. We have one old panel, so get the electric and the plumbing up. But I had a building, it was a converted hotel, 20 units. 19 of them flooded in a freeze, destroyed the building. Insurance did not come through for us. Fortunately, our partner bought the building. He fixed it up himself. He still made a killing. But early in my career, I had a building where we lost the entire building to water. Now, one of the first things I check— that would have cost me a million dollars if we didn't structure the partnership correctly.