The David Greene Show Lessons From Failed Flips with Tedman Cheng | Episode 36
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Feb 6, 2025 Tedman Chang, a real estate flipper based in Austin, shares his tough lessons from challenging property flips. He discusses navigating tricky market conditions and the pitfalls of contractor relationships. Tedman reflects on the emotional toll of investing, emphasizing the significance of maintaining a steady income during transitions. He highlights the complexities of renovations and the need for thorough market analysis to avoid costly mistakes, offering encouragement for others facing similar hurdles in their real estate journeys.
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First Flip Overview
- Tedman Chang bought a 3-2 house in North Austin near the Domain for $350,000, intending to flip it.
- He planned a $100,000-$110,000 rehab and a $625,000 sale price based on comparable properties.
Market Shift Impact
- While comparable sales supported the $625,000 target, the market shifted due to rising interest rates and people returning to offices.
- This highlights that numbers are lag indicators, and understanding the underlying market drivers is crucial.
Sales Challenges
- The house sat on the market for five months with showings but no offers, eventually selling for $532,000.
- This demonstrates the challenge of a flooded market and the importance of adjusting pricing strategies.