My first Real estate los

I just took my first L in real estate investing yesterday and it was 100% my fault. Learn from my mistakes.

I've been investing for 5 years, have 9 properties. Kept very strict to my buy box previously. Only priorities under market value, mainly off market through wholesalers, that have equity but would also work as a rental. They also needed to be below the median price point and in areas in familiar with.

Welp a wholesaler I've bought a few deals from called me with a property that fit none of those boxes. But he asked if I would but if there was "a ton of equity."

I said, "of course."

He sent me a property that was listed on the market for $690k, that he had got under contract and I could buy for $573k. All way above my comfort zone but when I looked at the recent sales comps it looked like these properties were most recently selling for as much as $750, and a couldn't over $800.

I got greedy. Ran over to check it out. Very clean. Looked like with some light upgrades o could make it happen.

Didn't have the money for it but I got it under contract with a non refundable $7500…$2500 more than normal but in a bigger deal it made sense.

It wouldn't with as a rental but seemed like a quick op. Went back to my phone and starting making calls to raise the money. Had a couple partners I knew wanted in on my deals so I had them review the numbers and they were both in.

But…. Then I took the deals to a couple of full time flippers I know well and they have me the bad news and reminded me of the obvious that I completely forgot to do. I didn't thoroughly look at the other properties available on the market. AKA my competition.

Two there were three very troubling properties that were under contract for $400,000, $600,000 both slightly smaller but very similar properties and then another one that was listed for $699,000 that was completely upgraded and renovated yet just sitting.

My best case scenario was probably around 690,000, which after realtor fees and closing costs would have netted us somewhere around 630,000 split between three people after renovations meant best case scenario about five grand each.

I ran it by two other pros and got confirmation. So instead of going through with the deal risking my partner's money, I just pulled out and took the $7,500 loss.

Lesson learned