The $120K Real Estate Investing Mistake YOU Can Avoid Today

Episode #357
There are ebbs and flows in every real estate investing journey, but not every home renovation project results in a six-figure loss! Fortunately, today’s guests learned one very expensive lesson so that YOU (hopefully) don’t have to!
Welcome back to the "Real Estate Rookie" podcast! Justin Noe and Nate Cherubini are real estate investing partners with top-notch problem-solving skills. But not even that could stop them from making a MAJOR blunder on one of their real estate deals-a mistake that cost them a whopping $120,000. After dealing with termites, zoning issues, and bad contractors, this dynamic duo had every reason to give up on real estate-but didn’t!
In this episode, Justin and Nate stress the importance of keeping your contractors in check and fostering healthy relationships in real estate. They also talk about why you should build your buy box early on in your investing journey and how to get your family on board with your real estate investing goals!
~~~~
Join BiggerPockets for FREE 👇
www.biggerpockets.com/signup?...
~~~~
Join the Real Estate Rookie Facebook Group:
/ realestaterookie
~~~~
Find an Investor-Friendly Agent in Your Area:
biggerpockets.com/agentmatch
~~~~
Find Investor-Friendly Lenders:
biggerpockets.com/findlenders
~~~~
Books Mentioned in This Episode:
“Real Estate Partnerships”: biggerpockets.com/partnership...
“Vivid Vision”: www.amazon.com/Vivid-Vision-R...
~~~~
How Tony Lost $100K on ONE Real Estate Deal (AVOID These Critical Mistakes):
www.biggerpockets.com/blog/ro...
~~~~
Making $71K on ONE Deal After 5 Failed House Flips and Six-Figure Debt:
www.biggerpockets.com/blog/ro...
~~~~
Connect with Justin:
BiggerPockets: www.biggerpockets.com/users/j...
Facebook: / twinpillarsinvestments
Instagram: / justinnoerealestate
LinkedIn: / justin-noe-22449941
~~~~
Connect with Nate:
BiggerPockets: www.biggerpockets.com/users/n...
LinkedIn: / nathaniel-cherubini-72...
~~~~
Connect with Ashley and Tony on BiggerPockets:
Ashley: www.biggerpockets.com/users/e...
Tony: www.biggerpockets.com/users/t...
~~~~
Connect with Ashley and Tony on Instagram:
Ashley: @wealthfromrentals or / wealthfromrentals
Tony: @tonyjrobinson or / tonyjrobinson
Show notes at: link.chtbl.com/Rookie
00:00 Intro
01:11 Finding the DREAM Partnership
06:54 HUGE Mistakes Avoided
12:49 Solving One Problem at a Time
19:32 The Anatomy of a DISASTER
24:18 A $120K Loss from ONE Rehab!?
33:00 Biggest Lessons Learned
39:32 Building Mental Toughness
46:32 Using Private/Hard Money for Flips

[@jamesnorris5202]

To avoid this from happening hire an engineer or architect first. Contractors often rely on hopes & dreams. An engineer would know the code and can get it approved quickly.

[@elyl78]

What is the "statement of work"? Same as scope?

[@asahelmadrid1878]

1st comment!! Great content.

[@boswellmorris8183]

Good information. For this type of loss, can it be a tax deduction for your business

[@annab5090]

Elon Musk didn’t sell his first business to PayPal, he created PayPal and then sold it for a gazillion $$$.