Manage episode 278440292 series 123306
Coming out of Louisville, Kentucky, Beau Hollis has not one, but three bad deals for you to feast on today. There are so many lessons you can learn from Beau’s generous sharing of some of his biggest mistakes, so I hope you’re taking down notes so that you can avoid the litigation nightmare he’s been through.
One of my favorite sayings is “A lack of humility leads to humiliation.” Beau’s very good at finding deeply discounted properties, getting them under contract, and having a proven exit strategy. Rather than wholesaling or even wholetaling a hoarder’s home in a great neighborhood, he decided to rehab the entire property. But he didn’t get the scope of the work to be done in writing beforehand, and every mistake led to a more costly mistake.
If you need private money to refinance and get out of a project, you need those relationships already in place before a refinance becomes your only choice. That’s why networking and talking with people on the phone should be one of your biggest priorities. When Beau realized he was overextended, he could turn to those networks he’d already built.
Beau’s two lawsuits could have been easily preventable with a simple addition to every contract. He talks about the two clauses he puts into every contract that he makes sure are signed and notarized.
If you’re interested in the mind map for the Deals Gone Bad series, text the word BAD to 313131. There you’ll see all of the episodes, plus tools and checklists that previous investors have shared so that you can avoid their mistakes.
—How to find a real investor friendly attorney.
—Why you need better contracts in place, and a few tips for where you can find some.
—The dangers of borrowing hard money for a poorly planned and poorly executed rehab job.
—Be careful about what you think you’re good at.