The $1 MILLION mistake‼️That most people make...... #realestateinvesting #investment #multifamily

Biggest mistake I see new investors make, like the number one thing, they raise enough money to close the property, they're like, hey, we'll fix it up or repair it out of cash flow. You take a 90-day project and it becomes a 3-year thing. It's like if you're trying to clean your house and you do it one room per day, your whole house is just always messy. That one stove blows your budget for your renovations, you have to replace that, then next month wait for the money to regenerate. It's a terrible way to do properties. You come in, you buy cash flowing real estate, you raise enough. If you need renovations to finish your entire project, rip it out, move forward.

So if I need a million down and I need a million to reno, I should raise 2 mil?

Yeah, get to your $2 million. Probably put a little buffer on top of that to make sure. And if the deal doesn't work with that big of a raise, you know you don't have a deal.