E110 When a Buyer Walks Away from a $935k Deal?
REI Hot Seat with Andrew Hines and The Investments Group
Shownotes Transcript
Become an REI Hot Seat Insider: https://submit.jotform.com/info_Admin_info831/rei-hotseat-insider-sign-up-form
In E109, Andrew Hines reviews a Fort Lauderdale flip deal that presented both challenges and lessons.
Initially purchased for $750,000 (down from an asking price of $1.1M), the property was intended for renovation.
However, market demand for rebuilds led to a strategy pivot, selling it for land value instead.
Although the first buyer failed to close, Andrew recovered the $50,000 deposit and eventually sold the property for $935,000 after navigating legal and market hurdles.
Despite delays and extra costs, the deal netted a $121,000 profit after factoring in carrying costs, legal fees, and minor repairs.
Andrew stresses the importance of working with reliable title companies, securing proof of funds from buyers, and maintaining flexibility to adapt strategies.
These steps helped ensure the deal remained profitable, even in a softer fall market.
The episode also highlights Hines’ broader U.S. real estate strategy, which involves expanding into Texas and Georgia with a systematic approach to acquisitions.
He emphasizes consistent metrics, such as buying at 70% of market value minus renovation costs, to safeguard profitability.
This case study reinforces the value of adaptability, clear processes, and a strong team in real estate investing.
Don't forget to join the Insiders list for access to off-market deals and other unique opportunities.
Andrew's linktree : https://linktr.ee/theandrewhines
REI Hot Seat Instagram: https://www.instagram.com/reihotseat/
E110 When a Buyer Walks Away from a $935k Deal?
0:20 - Intro
0:44 - Deal Overview: Fort Lauderdale Flip
2:30 - Negotiating the Purchase Price
3:55 - The First Buyer’s Complications
5:00 - Legal Challenges and Recovering the Deposit
7:12 - Relisting and Market Softness
8:30 - Final Sale and Lessons Learned
10:00 - Adapting to U.S. Market Differences
12:30 - Team Insights: Acquisitions and Sales Process
Disclaimer: This episode, as with every episode of this show, should NOT be considered as advice. Investment advice is NEVER given on this show. Always consult a competent investment advisor before making an investment decision.
Andrew Hines is a seasoned real estate investor, business-builder, educator, and podcast host, well-recognized for his extensive experience in the field. Andrew graduated with an HBA from the Richard Ivey School of Business in 2008 and spent three years teaching introductory business at Western University as a Lecturer. He has been investing in real estate since 2011 and completing value-add projects since 2015, primarily in the luxury student rental space. Andrew started a project management company for building out new-construction townhomes in 2016 and has since built over 50 residential units throughout Southwestern Ontario. Andrew is an advocate for treating real estate investing like a business and uses his experience in his educational endeavors, coaching numerous investors on strategies to achieve financial independence and scale their portfolios effectively.
His podcast, "The Andrew Hines Real Estate Investing Podcast," serves as a platform for sharing insights, strategies, and success stories, connecting a community of like-minded individuals passionate about real estate investing. With a background that blends practical investing experience and investor-focused work, Andrew has become a pivotal figure in the Canadian real estate investing community.