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You're listening to the Flip Houses Like a Girl podcast, where we educate, empower and celebrate everyday women who are facing their fears, juggling family and business, embracing their awesomeness and wholeheartedly chasing their dream of flipping houses.
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Each episode delivers honest-to-goodness tools, tips and strategies you can implement today to get closer to your first or next successful house flip.
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Hey there, welcome back to Flip Houses.
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Like a Girl, I'm Sis Donnelly, a real estate investor coach and proud member of this amazing community for nearly six years now.
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Today's episode is a wild ride in the best way possible.
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Our guest, lois, took us on a rollercoaster journey full of twists, turns and total transformation.
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She's opening up about the powerful mindset shifts that helped her push past fear, take action and grow in ways that she never expected.
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We're talking real talk, real houses, real breakthroughs.
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And she's not done yet.
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Lois shares what's next on her journey and, trust me, you're going to want to hear it.
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Be sure to listen all the way to the end.
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Lois drops some seriously valuable lessons she's learned along the way, and you'll hear how the Flip Sisters community has played a big role in her journey.
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Let's dive in.
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I'm Lois.
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I live in Cary, north Carolina, which is right outside of Raleigh.
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Let's see why did I want to get started pooping houses?
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My whole career has been in residential mortgage and then mostly commercial mortgage, small business financing.
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So just in general, I like buildings, I like houses, I like real estate, I like financing, I like the math, I like figuring out how it all fits together and all that kind of stuff.
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So I've had a love for real estate investment for a long time and have never actually participated because it was just too scary, right.
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I mean, I I knew I knew a lot of stuff, but I didn't know all this stuff.
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So it was almost on a whim when I saw like the flip sister stuff come up and I was like, ooh, I'd love to fix up old houses, like I'd love to really do this, and here's a group that's going to show me the way and they look really cool.
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So I joined.
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You know there wasn't an enormous amount of research or forethought that went into it, but I just went for it and really the thing that impressed me the most is that as I started I reached out.
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I think the first person I talked to was Blair, or I don't know if I talked to her.
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We communicated somehow and and and she answered some questions and the first thing I noticed was that you weren't asking me for money.
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So I was like, hmm, well, that's cool.
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And then, like the next time there was a conversation and again I don't remember if it was email or what the form of the conversation was, but it was another thing where it's like they do sound really great and they're still not asking me for money.
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So I'm like all right, you know that that may be even more interested in, in more feeling like this is they're not just trying to get a subscription, you know they're, they really have an interest.
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And that's that's exactly how I felt ever since then.
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And and not to be like a shameless, like you know butt kisser, but it's I mean I've gotten nothing but support and good things out of this group.
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I love that.
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So, yeah, that you know, and it also, like I mentioned before, this kind of coincided with me really kind of getting on my own.
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I'd gotten divorced and my kids were getting a little older at that.
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When I did my first split they were still.
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I think they were still in high school.
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I think my son, my son was either a senior in high school or freshman in college, so they were requiring a lot less hands-on.
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They were, you know, they had reached a different stage in life.
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So it really worked out that I had the time and the energy to do this and both my kids helped on my first split.
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They, you know each, you know.
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My daughter especially, who was the younger of the two, was great.
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Like I was able to say, hey, can you paint the edges of that ceiling?
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And she's like, yep, she just did it, it was so cool to have both of them involved in that kind of thing, so that was great.
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So it was.
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It was all just kind of like you know, kind of everything in the universe leaning towards perfect timing, and I was kind of like you know, and I thought things through.
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I'm like, okay, this, this is scary, and you know what's, what's the worst thing that can happen, the worst thing that could happen, is that I might lose some money and I will be okay, like I have earning capacity.
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You know, worse, worse, worse scenario, cause I use my home equity line of credit for for my, you know, my I was my own hard.
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I used my home equity line of credit for my, you know, I was my own private money lender.
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I was, like you know, worst case, absolute worst case.
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If I really got in trouble, I can sell this house, I can pay it off, I can move on, it's all going to be okay.
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So that's what I had to kind of keep telling myself as I got involved.
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Like you know, it's okay to have a healthy level of fear, but I can't let that rule me.
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And I also realized too that I've always thought I was very risk averse.
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And I'm not risk averse.
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I am very I'm very calculated risk friendly.
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I'm not wild risk friendly, and that was as I realized.
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I'm like, if I understand the situation and I've done the numbers and I feel comfortable with best and worst case, I'm fine and I'm willing to take some risk on you know.
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So.
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So that was kind of cool to find out about myself, as I really kind of dove in there.
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So you actually just made me have kind of a light bulb moment, yeah, because I have always thought of risk tolerance as being risk averse or risk friendly, and that was it.
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But you're right, there's this huge spectrum, right.
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Like not everybody is going to be in the same.
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You can't just define it as one end or the other.
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There's always going to be this gray area where everybody falls a little bit somewhere different, right, yeah?
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yeah, there's a lot of mitigating factors.
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Yeah, 100%, 100%.
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So you bought your first flip pretty early on in the program.
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You were 90 days in and you were under contract on your first flip and, yes, you were paired up with Coach Blair.
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She speaks very highly of you.
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She was so excited for you to do this podcast.
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By the way, she was like kind of dinging me about it.
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Like sis, we really need to reach out to Lois.
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She is so cool.
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That's awesome.
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So you were paired up with Coach Blair and I remember her posting in our group congrats, lois, just under contract on her first flip 90 days in.
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Like you are the poster child right, you're following the process.
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You're a great student.
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I am very coachable, I'm very teachable, which has served me well in my life and really I mean, again, I knew I didn't know everything but I felt very comfortable on the numbers side and the financing side because that's my background.
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So I mean, and I understand very comfortable on the numbers side and the financing side because that's my background.
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So I mean, and I understand financial statements, I understand balance sheets, I get all that.
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So that's one thing that I didn't struggle with, right, Like I already felt, like I had that in my back pocket.
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So a few little kind of like serendipity things happened to me in the very beginning.
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I did go to a real estate investment network event and you know, again, I was, I was scared, but I went there.
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It was a luncheon and and somebody asked me, like you know, where do you fit in here?
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And I took a deep breath and I said I'm an investor and like nobody said really how many, like nobody cared, everybody was like okay, great, you know, like so that was kind of one of those where it's like, you know, even though I hadn't bought my first flip yet, I was like that that's all right, like you don't, you don't have to come in with a resume and a like a portfolio.
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You just show up and say this is me and ask questions and and again.
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Yeah, because I didn't die, it was all right.
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You didn't die, but did you die?
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Yeah that you didn't die, but did you die?
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Yeah, that's probably one of my favorite jokes, right and we're all so worried about.
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Oh my God, people are going to question me and not believe me and like nobody cares, right, everybody is there to figure out stuff for themselves, and no different than me.
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So it was, you know, it was all great.
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So so, through that, I then joined their Facebook group and I noticed like a wholesaler out there whose name was really familiar, and this wholesaler, who worked for new Western at the time, both my kids are music majors.
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So funny, funny coincidence, he was a clinician for one of my son's band camps at ECU.
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Oh small world.
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So, like many musicians, he's now in real estate.
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But I reached out to him and we were like OMG, OMG.
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So it was this wild, crazy connection.
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But I felt like that was kind of the world kind of pushing me to like it's going to be okay.
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You already know somebody out there and that's who I purchased my first flip through.
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I purchased it through a wholesaler, through this gentleman who you know again, former music connection, now real estate connection.
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Yeah, and, and I felt like I mean new Western guys and the wholesalers in general can get aggressive and you have to know your stuff.
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And I felt like I knew my stuff and I also felt like I felt comfortable with him, right, I felt like he wasn't going to let me get into anything that I shouldn't be into.
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So, and through him, like he would send me stuff and I learned how to evaluate a flip and do a deal and do a DA and pull some comps in like 15 minutes, like I cause I would look at these on my I was working full time, you know, so I was looking at these on my lunch break, you know I'd be kind of like.
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Hey, I can look at this at noon today.
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If you think it's going to go by then, then forget it, I'm out.
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Right, I can either look at it at 12 o'clock or at five o'clock.
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You know, it was kind of like and that's what I would do.
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I would just, I would rapid fire these, these slips that would come through, so I would, and I quickly realized that most of them didn't fit for me, right, I was like.
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I learned that their numbers were too tight and now he's since moved on to like his own.
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He's doing his own real estate sale stuff and occasional flips.
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But now I have a new Western guy and I told him up front.
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I said I'm like you know your model typically isn't going to fit for me.
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You know I'm like, but if you find something I'd be happy to run the numbers Anything near NC State or anything near the beach.
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That's what I told him.
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I'm like, if you've got something there I'd love to run the numbers.
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But I was very clear that beach again, exactly, yeah.
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Someday I need a beach house, right, so it would be great if I found it as a flip.
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But yeah, doesn't everybody.
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Yeah, exactly, exactly so.
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Yeah, that was when I got my first flip was through him, awesome.
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So what was purchase price on your first flip?
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What was renovation budget, timeline, arv, that sort of stuff?
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How did it start?
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Where did it wind up?
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Yeah, so upfront.
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I mean, I learned a lot through this.
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It was a pre foreclosure and it was.
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It was presented as it just needs new kitchen appliances and like a little bit of cleaning, right, yeah, right, not exactly.
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So that again a great learning experience for me.
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So I purchased it at $165,000.
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It was projected to sell at about $215,000.
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And I thought that was very conservative, and luckily it was.
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And it was presented as oh, it needs like $10,000 into it, Okay, and it was presented as more like a whole tale.
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Well, I learned quickly nothing only takes $10,000.
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Okay.
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And it was presented as as more like a whole tale.
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Well, I learned quickly, nothing only takes 10 grand.
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There's no, it's like new carpet, right.
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Again, I learned, I'm always going to repaint the whole thing and I'm probably going to replace, or you're always going to replace carpet and you know, and this, this didn't need you know.
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It was kind of presented as oh, just paint the kitchen cabinets.
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No, no, no, no, no, no, no, no.
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So for starters, like again, it was a pre foreclosure, so it was really it was.
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It had a sad story.
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Like as soon as I showed up, all the neighbors swarmed over, like that was a really good feel good moment.
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They were like, yeah, thank God, like there's, this has been such a distressing house, we're really glad somebody has purchased it.
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You know it was the only not nice house on the block and it just.
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You know it was a bad situation.
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There was some, you know, child and family services have been called.
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There was some addiction.
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There'd been some bad stuff you know so you know, and that's one of those things where it's like this was once a well-loved house and things happened, you know, and I was really glad to come in there and love it again, you know, and and bring it, you know, and show it some love and and find it, find a new family for it, you know.
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So give that house a chance at a new story.
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Exactly exactly.
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So.
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For starters, it was much, much more full of debris.
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It took two dumpsters to clean it out.
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And and then, like the, within 24 hours, the boyfriend who had been living there, like the woman who owned it, turned in her keys to the title company.
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Again, it was a pre-foreclosure.
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She's like, and all she wanted.
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Like, as I purchased it, she was going to get like five grand out of it, you know, and, and that was, she needed five grand to move on to turn in the keys.
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Well, the boyfriend showed up and ripped the garage door off the hinges to get into the house and get some things.
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So, like, my contractor was there that morning and he's like, oh, this just happened.
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I'm like, just let him take his stuff and go like, let's just move on.
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So right away, I'm buying a new garage door, right and again.
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So that renovation budget was not 10,000.
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That renovation budget was 30,000 by the time we were done.
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And again I learned.
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I learned a lot of really important things, like you know, number one I trusted and I'm not saying my wholesaler steered me wrong Like this.
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That was, I should have gone through there and walked it myself.
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I did not.
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I trusted, I trusted his.
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You know his opinion.
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And again, from when he walked through it to when I purchased it, it was only a few days but it had.
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It had changed since the first pictures to what it was and I should have been there poking around more.
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So I mean, I wound up replacing the kitchen cabinets.
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I wound up replacing the toilet, the vanity.
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I wound up, you know, again repainting everything new carpet.
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It wound up having to have new windows, oh wow.
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Yeah.
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So, but through all this, luckily the contractor working on it was great.
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He was reasonable as we worked through this process.
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Working on it was great.
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He was reasonable as we worked through this process.
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You know there were a couple of things that he missed that he later repaired for free because his, his thing was like one-stop shopping, you know, for investors.
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I'm going to tell you it's this price, I'm going to fix these things and we're going to move on.
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And since there were a couple of things he missed, he came in and took care of those at no cost.
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So that was, that was great, you know, and again, there's things that we couldn't have foreseen.
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I mean, they're again the person breaking in and I'm needing to put on a new grass shore, right, I know that, you know.
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So you know it is what it is and and I learned a lot of things through that.
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So, and again I learned, like a basic like I'm never going to flip a property with 10 grand in ever.
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That, not that's.
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And honestly, like I'm not going to do that.
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If I could even get away with it, I'm not comfortable.
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Like I don't want to lipstick anything.
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I want to do what needs to be done.
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So that is going to slim down the properties.
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That are options for me, and that's okay.
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Like I don't ever want to just put lipstick on it and scoot it along.
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So, again, very good learning opportunities for me to understand where I want to be in this whole market, right.
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So I wound up breaking even on it.
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Luckily, I was able to sell it for $225 instead of $215, which is good.
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I did have one buyer, I mean I did.
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So things I learned I will always stage a property.
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I mean I was kind, so things I learned.
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I will always stage a property.
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I mean I was kind of like man.
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It's like $2,500 to stage this thing.
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But I knew I'm like I'm not going to be able to sleep at night unless I am really presenting this in the best way that it can be presented.
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And that meant stage and you know what, holy shnikes Talking about a makeover?
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I mean the contractor gave it a makeover.
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I did a lot of the painting myself, which I told myself I will never lift a paintbrush again.
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I am able to paint.
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I'm not going to paint anymore and I am able to do some.
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I am able to replace light fixtures.
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I'm not going to do that.
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I am able to replace outlets and light switches.
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I'm not going to do that ever again.
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Like I'm no, I will.
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I'm going to have a contract to do that.
00:16:48.066 --> 00:16:51.354
Just because I'm, just because I can, Doesn't mean that.
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I should Right Exactly so.
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But I got to the point because this was running over budget.
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Those were the choices I had to make to keep it in any sort of a breakeven situation.
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So so those were things that I did to keep it within.
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Well, keep it within its overrun budget, okay so, and I did.
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I had one buyer come in.
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You know, initially I wasn't going to replace the windows.
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Their inspector gave them all this fear.
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They're like, oh my gosh, this is just a lipstick thing.
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No, it's not, you know.
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So anyway, they backed out.
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But here in North Carolina you have due diligence money that if they pull out, I get to keep that.
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So I kept that, and then that helped offset the cost.
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I want to just like.
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Even my realtor was saying, well, you could just replace the glass in these windows.
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I'm like, no, we're just going to do new windows, like it.
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Just why put new glass in windows that are borderline?
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Like I'm just going to do this.
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So again, and I again I can sleep better at night by doing that.
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So we did all that stuff and it was all good.