We have decided to take a loss on this project and sell it. We can clear up some capital this way for projects that we can maybe knock out quicker and gain cash flow on. This one was too far in the deep end for us at this time.
Losing to win
It really hurts to take a loss, but in the long term we believe that this clears us up to make better decisions in the near future. We are in this for the long haul, and know that sometimes you have to take some lumps.
I was pretty upset about this when we started the decision making process. Nobody wants to lose! Now that we talked it over though, we believe that we can get most of our money back out and move on to bigger and better things.
Remember our long term mindset. We aren’t getting rich quick here, we’re doing it nice and slow and becoming experts along the way.
Apache going forward
We decided to list it on Wednesday of this week, and by Sunday we had a signed offer to sell the house at what we purchased it at. If this goes through as it should, we will only be taking a loss on the time and work that we had done since purchasing.
If the deal falls through, like every deal has the potential to do, we will keep marketing it ourselves and with an agent for the next few months.
If nobody is ultimately interested in purchasing it at our original price, we will keep it for a long term project to buy and hold.
More deals on the way
It is almost as if taking a loss on Apache is invigorating me going forward to only make future projects more secure and lucrative. I have already found an interested party to purchase the house I have under contract on Young Dr.
I have other leads that I am working in the meantime, but may be ready to amp up our marketing budget and get some deals moving through.
Going forward, as soon as I get a property under contract, I will be putting it on craigslist and reaching out to whoever I know that I have a house for sale. I could probably already have a buyer for it and would have gotten the seller out of their house quicker.
Finding deals going forward
I am still doing PPC marketing, and working on SEO for our site.
I am getting a good amount of leads that are motivated from my PPC and need to keep improving on my phone skills making offers to more people somehow. I feel like I am losing opportunities for potential deals by not going after everything with an offer.
If you are interested in the other ways that you could be finding deals out there, check out this article I wrote for Bigger Pockets.