In the same time frame I was building Student Painters, my dad gave me an incredible opportunity to become a part of a residential real estate deal in Denver, Colorado. The plan was to buy a tri-plex near the University of Denver, hold it for a period of time while fixing it up, and then sell it to make a pop. This was a perfect opportunity to learn how to do a deal from the ground up, manage the property, and then get a share of the profits when it sold. It all sounded great so the play was made.
The whole thing revolved around the idea that I was on site to manage the tenants, organize contractors, and learn how to run the books. What wasn’t in that magnificent plan was dropping out of school. When this happened, everything started to get a lot more stressful…not for me but for my dad. Imagine you have close to a million dollars invested in a piece of real estate where your son was supposed to be the eyes and ears on the ground. But all of a sudden no one was there to watch it. This forced him to allocate resources from his company in Denver to help watch over the investment, because I bailed on my end. Clearly this was a pretty fucked up situation.
After a couple of stressful years, the properties all sold and we finally made our pop. Well dad made a pop, but my potentially 30k gain was cut short to a mere $14,000. $9,000 of this went to pay down some personal debt I had accumulated leaving me with barely enough to call it a success.
But like all the other failures, this opportunity brought some lessons along with it. The most important was if you can’t handle something yourself, be responsible and set someone up to do it for you. Instead of making this happen on my own it forced my business partner to put the team on his back. Not only did this create stress and resentment, but it cost around $10,000. I could’ve easily setup someone to watch over the property for a lot less than one of my dads’ employees. At the time I was so caught up in what I had going on this never even crossed my mind.
Overall the most important lessons were just embedded in the process. From the beginning, with looking for property, all the way till that final sale was made this business endeavor was a memorable one. Plus it sparked a passion for real estate projects in general which is never a bad thing😊