Fargo Real Estate Investing & Real Estate Financial Planning™ Podcast · James Orr

Secret Real Estate Investing Horror Stories

·59 min·4 clips

A six-sided die can turn $100,000 into $1 million—or wipe it out entirely.

1. Fargo Real Estate Investing & Real Estate Financial Planning™ Podcast features James Orr on “Secret Real Estate Investing Horror Stories.” 2. James Orr is the host, and he says this module comes from the Real Estate Investing Secrets course. 3. The episode asks what real estate investors should do when “the shoelace is untied” and the plan breaks. 4. James Orr says newer investors fear leaking toilets, overflowing toilets, and trashed rentals at 3 o’clock in the morning. 5. He uses Mike Tyson’s line, “everyone has a plan until they get punched in the face,” to frame the problem. 6. He argues that a better response is to bend down, tie the shoe, and move on. 7. James Orr says a property can lose value, miss cash flow, or cost $10,000 in unexpected repairs. 8. He says investors should expect tenants to be evicted, properties to be trashed, and interest rates to rise under contract. 9. He says 1031 exchanges can turn into tax problems after inspection reveals an unwanted property. 10. James Orr defines expected value as a probability-weighted average and cites Oxford dictionary language about a predicted value. 11. He builds a six-sided die example where a $100,000 investment becomes $1 million on a six. 12. He says the same $100,000 investment goes to zero on a one through foreclosure. 13. He says rolls of two, three, four, or five produce a $150,000 outcome. 14. He calculates the weighted average outcome as $266,666.67. 15. He says the point is not to make bets so large that one bad roll takes you out of the game. 16. He says his real estate financial planner software models down payments, re-leveraging, rents, prices, taxes, insurance, and maintenance. 17. James Orr says the episode is meant to teach how to think probabilistically, not just to vent about bad experiences. 18. He describes the format as a teaching module that mixes analogies, math, and short horror stories. 19. Investors who want risk frameworks and real-world landlord examples would like this episode. 20. People wanting a light overview without tenant-damage details may skip it.

Listen to the show on

Apple Podcasts Spotify

Play clips from this episode More from Fargo Real Estate Investing & Real Estate Financial Planning™ Podcast