Back again dont know what to do.

1. bought a property in Rochester 2 years ago had many issue finding a reliable Management company. Now the property has not turned a profit for a variety of unlucky situations and tenant idiocy. The house still needs lots of work if ever the tenant moves out. Took out all equity to fix up things ^.

2. Bought a property in Rochester overpaid for on top of that had unforseen investments into a roof and other things. I got a good tenant now who accidentally burned down the kitchen :lol: but so far the property seems headed in the right direction. No Equity since I overpaid and had unforseen repairs which I took a refinance loan on.

3. I bought a property in Pittsburgh and had majour issues with contractor where many things had to be redone and delayed construction.When I finally finished I couldnt refinance my hardmoney loan because of the credit crunch, then had issues with management company and bad tenants. Had to sell the property at a loss.

Now my current finance situation is bleak my credit cards are maxed out, credit history is alright but got hit in the situation,my savings are low. How do I get back on the horse, what should I do to regain my compsure and confidence?

Edited: 06/26/2010 at 05:19AM

Joshua Dorkin

BiggerPockets Founder · Denver, Colorado

10630 posts
46531 Influence
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Icon_minipost Jun 10 '08, 12:01 AM

Your situation will sound familiar to many. I've dealt with many of the problems that you're dealing with, and almost all stem from poor management from companies I worked with out of state.

If you're unable to pull out any equity or borrow on your credit cards, do you have any other sources for financing? Is there any way to bring the 2 remaining properties back to shape? Do you live nearby, or are these out of state?

If these properties are draining your wallet, driving you mad, and not getting any better, no matter what you do, I think you're in a situation where you should consider dumping them.

Any investor worth his/her salt, has probably experienced some failures. The key is to learn from them and move on. Sometimes the best move for someone on a sinking ship is to jump instead of riding it down to a slow death.

These are just my thoughts based upon your comments. Perhaps with more information, I might recommend other options.

Edited: 06/26/2010 at 05:19AM

Joshua Dorkin, BiggerPockets, Inc.
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Erik Misyuk

Interior Decorator · brooklyn, NY

123 posts
60 Influence
2 Awards

Icon_minipost Jun 10 '08, 12:11 AM

basically the one property in Pittsburgh I dumped like you say, the Rochester properties have been bandaged for the time being and should be ok in the long term and yes they are 6 hours away. Now I dont really have any other sources of financing, and dont really know how to get back on track, or what track to get on :oops: .

Edited: 06/26/2010 at 05:19AM

Jim Hinen

Real Estate Consultant · Filer, Idaho

3 posts
25 Influence

Icon_minipost Jun 10 '08, 02:58 AM

I have to agree with Joshua. Often in the excitement of finding what we think is a good deal, we rush into making a bad decision. You need to have clearly defined goals and rules. I wrote out a detailed business plan that dictates exactly how I will do my deals. I am a positive person and I am always thinking the best things will happen. That can be a problem if I am not careful and therefore having written out my investment strategy I am able to protect myself from myself. If it isn't helping your situation you probably should get out of the property. Times are tough. I would not be discouraged. If you stop now then you will not have any benefit of the lessons you have experienced in these deals. There is a solution and you probably have some ideas. Keep moving forward.

Edited: 06/26/2010 at 05:19AM

Jason Hanson

Real Estate Coach · Oakton, Virginia

696 posts
577 Influence
5 Awards

Icon_minipost Jun 10 '08, 07:06 PM

I would start doing some wholesaling now. You won't have to deal with any maintenance or property problems and you can make some decent paydays (5-10k). This is how most of us start off in this business (because we are broke and cash is king).

Also, like Josh said almost every investor I know has had some failures. When I started out and had no idea what I was doing I had what I like to call a $20,000 " seminar" on a property gone bad.

Edited: 06/26/2010 at 05:19AM

Account Closed

691 posts
24 Influence
2 Awards

Icon_minipost Jun 16 '08, 11:37 PM

Oxy's problems with the Rochester houses is no equity, so he is in the position of not being able to easily " jump off the ship" . Can anyone think of creative ways for a person to do so? it would probably be best at this point, because then he could use his remaining efforts to go after good deals, or wholesaling in the meantime. Good luck, Mike S.

Edited: 06/26/2010 at 05:21AM