The Story of My First Flip – How So Many Small Failures Tuned into a Massive Win

Jackie Coffey

The Story of My First Flip – How So Many Small Failures Tuned into a Massive Win!

Entrepreneurship is rife with unexpected challenges, and my first property flip was no exception. What began with a harrowing struggle for financing became one of my most educational experiences and ultimately, a tale of resilience and redemption. Hopefully, my struggle will help you avoid some of the rookie mistakes I made if its your first flip! Don’t worry, I’ll add a few lessons and take away here, so you’re not lost! Lol

The Bumpy Road

The journey started with a staggering 202 calls to secure 100% financing. Well, almost 100%. I needed $600.00 to close the deal. So, Scotty, my brother let me borrow it! When the approval finally came, I felt exhilarated but naive to the trials ahead.

The first thing I did was decide to flip this entire house. I planned so many upgrades that were not necessary. I hate to even say this out loud. I thought I was going to take this one to the grave but here it is. With my over-excitement, I replaced a 2-year-old roof because I did not like the color! Smh. I put sod down, I took out perfectly good cabinets. They were a solid 80% and could have been painted and made like new. Oh, the number of unnecessary upgrades I made is so upsetting to the vet investor that I am now!

 **Lesson: ** Evaluate what actually needs replacing. Not everything old should go.
**Takeaway: ** Conduct thorough inspections and consult experts before making major replacement decisions.

The second huge mistake I made was hiring ONE guy to do this entire flip. No helpers, no crew. Just one guy. Roofing, plumbing, hvac, electrical. SMH Oh, the mistake that was. Everything was taking forever. This flip should have taken 2 weeks, max. With this one guy I was at 2 months and very little was getting done!

*Lesson: * Diversify your team from the get-go to prevent being at the mercy of one person’s whims.
*Takeaway: * Always vet multiple contractors and have backups ready.

This was my first flip so when I received my first draw, I thought I was a millionaire! I went into Home Depot like a BOSS!! I could buy anything, and I was so excited! So, what did I do? Naturally, I bought everything at once!! SMH! When I say everything, I mean everything. Tile, grout, doorknobs, doors, SOD, cabinets, countertops, carpet padding. I bought it all AT THE BEGINNING in one fell swoop! I didn’t even think it would be in the way of sheetrock or paint, or carpet, I just bought it all! ALL OF IT! Lol. (I know some of you vets are dying laughing, I am too as I’m writing it)

 *Lesson: ** Don’t buy all materials at once, especially if your trusted resources aren’t in place yet.
*Takeaway: ** Stage purchases according to project phases and secure them properly.

One day I go to the job to check on everything and I noticed my contractor’s tools were all gone. I thought, “That was strange” I continued to look around and noticed all of my material was GONE. YES GONE.  The house was empty. He had stolen all of my material and what is worse, I had no material funds left. It took a while, but I eventually tracked him down with my stepdad Wes and Bella’s dad, Erik, and got a little gangster (but that’s a different post lol) He told me he was building his own house and he apologized for stealing it and we got some of it back. Now, I’m stuck back at this flip with no contractor and less material.

*Lesson: ** Be prepared for unexpected setbacks and confront them head-on.
*Takeaway: ** Have legal and logistical measures in place to reclaim or secure assets.

I hired a new crew. I was a little tougher this time around and had a much more no-nonsense attitude. They did great for the first 4 or 5 days, and I was excited to see work getting done. Then I noticed work began to slow down. I would show up and to my amazement, the guys would be there ASLEEP!! It wasn’t long after I noticed they were getting high on the job and once again fired another crew.

 *Lesson: ** A sober and diligent workforce is crucial.
*Takeaway: ** Screen hiring practices more carefully and maintain rigorous standards for worksite behavior.

I did make one better choice. I hired a separate guy to do the carpet and got a great deal on it. He showed up on time. Did the bid. He was PERFECT! He wanted a $500.00 deposit. So, I gave it to him. To this day, I never got the carpet or heard from the carpet guy again! This lesson is pretty easy. Don’t pay people up front!

 So now it’s been 3 months. I am out of funds and we still have so much to do. So I start calling friends and family to help me get this awful project done. I’ll never forget my mom and I scraping four layers of glued-down laminate flooring. I could not have finished this house without my mom and stepdad Wes. We were exhausted. I go to Home Depot on day and I am talking to a lady in the pro desk and a contractor overhears my woes! His name is Gustavo. He asks me about the project and offers to help me finish it for only a few thousand dollars. So I humbly asked my mom if I could borrow it and she said yes because she loves me.

*Lesson:** Proper budgeting and cost management are non-negotiable.
*Takeaway:** Allocate funds wisely and always keep a contingency reserve.

The Silver Lining

Despite these trials, I made it to the finish line, selling the property with just a slim profit margin, basically none after paying Mom and brother back. It wasn't a financial triumph, and I felt like this was a huge failure, I questioned if I would do another flip. This was hard. My inexperience was ever-present.

✨✨Then it dawned on me.✨✨ I might not know exactly how to flip a house. BUT I know how to NOT flip house and just like that, I wasn’t giving up. I was ready for the next one. That first flip with SO MANY small failures taught me everything not to do. I learned the lesson of 10 flips in one! I realized this was a massive win.

Armed with these lessons, my second flip went smoother than cream cheese on a warm bagel. Costs were controlled, tasks were timely completed, and the end result was a substantial profit. I knew this is what I would be doing for the rest of my life. I loved it. Every flip was scary but that scary is what made me feel alive. Every day I was doing something new, trying new materials, trying new designs. It IGNITED my soul. I couldn’t wait to go to work every day. I couldn’t wait for Mondays. All of this and I was still able to make a profit. I felt like I won the lottery. It wasn’t even the accomplishment of the flip that was the win, it was overcoming all of the adversities along the way that I was so proud of!  

And I’m happy to report that while it’s been on and off throughout the years. Gustavo and I still work together and as of this post, he is working on three flips for me right now. He has been along for the journey and watched Bella go from a baby to the 19-year-old she is now.

So, Entrepreneurs remember,

- **Perseverance Pays Off: ** Each challenge is a lesson in disguise. The more you endure, the more you learn and the more you have to be proud of for overcoming.

- **Team Diversification: ** Don't put all your eggs in one basket. A diversified team mitigates risk.

- **Stage Your Investments: ** Phased material acquisition prevents loss and ensures better oversight.

- **Screen Your Team: ** Reliable workers save time, money, and headaches. Prioritize diligence in your hiring process.

- **Budget Wisely: ** Keep a tight grip on finances. Effective budgeting and maintaining a contingency fund are critical.

- **Continuous Learning: ** Treat setbacks as stepping stones to refine your strategies and approaches.

Failures are stepping stones to future success. Embrace them, learn from them, and use those lessons to propel you to greater heights.

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