Hustled by a friend and I blame MYSELF!

Hustled by a friend and I blame MYSELF!

Rental Property Investor · Indianapolis, IN · Member since 2015 · 46 posts · 16 votes

Allow me to reintroduce myself, my name is Travis and I'm a recovering procrastinator. Which, procrastination seems to be a disease I've been fighting forever. I live in Indianapolis, moved here from the Northern VA area (DMV) a little over a year ago. Reaching out for advice from you professionals out here in BP Land. A few months ago, I connected with an old colleague of mine that I trusted. He's been wholesaling successfully for about two years now (maybe more) and now has a coaching business. I KNOW the guy or thought I did and trusted that he could help me get started in the business. I've been reading and studying REI for about a year or so now (procrastination or paralysis by analysis). Anyway, to make a long story short, I connected with this former friend and he told me he could help me for a low cost of $2,500 ($500 discount) for his starter program. It looked good. He's in the business full time, making a living and has really overcome some challenges that were pretty admirable. I've heard Josh and Brandon say so many times NOT to pay for programs like this but I did it anyway, thinking I could trust a friend that is in the business. Going against what I've been learning on the BP Podcast and on this website, I sent this friend $2,500 via PayPal to get my business going. And boy do I regret that. It started off with a couple of calls from him, video calls and how to get yellow letters out there. He got me some leads in my area that got me quite a few phone calls and inquiries. What I didn't realize is that wholesaling is a JOB and I already have one of those that I work 50 hours a week. So I made some connections with potential sellers, lots of low ball haggling and some not so nice folks on the other end of the virtual line. It felt dirty. So I just stopped. My day job is already pretty demanding and on top of that, I'm married and father of four small children. My time is already limited. I do have a nice home that we were living in in NOVA and is now renting out. Own a nice home here in Indy too. Basically the mortgage is getting paid in NOVA and I'm clearing about $75 a month after I pay the mortgage on it, along with the home warranty I have on it just in case something breaks. I have a handyman back there that takes care of anything for me, luckily the house is only 10 years old. I have EXCELLENT tenants that has just renewed the lease for another year. I realize now what I really wanted to do was be an investor, not exactly a wholesaler... But I get that you kind of have to do both to get some properties under your belt. I'm regrouping now with plans to buy multi-families in Indianapolis as the housing prices are really good here in comparing to where we moved from. I have about $125K of equity in the house in NOVA and I was looking to use it to get started here in Indy. I have a realtor that's been sending me multi's but I'm quickly realizing that this is not her expertise... I've licked my wounds and ready to get back in the game. Any advice?

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Real Estate Agent · Las Vegas, NV · Member since 2015 · 2k+ posts · 1k+ votes
9y

it sounds like your friend did his part of the deal but you did not like being in the wholesale business. Any one of the leads could have easily made your money back

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  • Investor · Redding, CA · Member since 2016 · 180 posts · 102 votes
    9y

    It sucks that you feel like you got conned by a friend, but try to look at it as an education. You probably did learn a thing or two about wholesaling and you got some legit leads, so you "invested" a little up front to get you started. A nice week-long vacation in many areas will run you $2500 once you tally air fare, hotel, food, and rental car so when you put it into perspective, the money you spent isn't that bad. Good thing you have some other properties, equity, and a desire to keep going. I'd keep working the leads you got if I were you. Just stay in touch with those potential sellers because, eventually, you may be able to make a deal with one. Lots of wholesalers and others will tell you they sent the same letter to a prospective seller 10 times, once a month for 2 years, even for multiple years before it actually turned into a deal. The key is having the lead in the first place. Meanwhile, I'd sell or pull out your equity and buy a small property that cash flows so you can get your feet wet and your confidence back up. You're just getting started and it seems like you're in a pretty good position. But you have to get started. Procrastination is an anchor. Go small to start so your risk is small. Baby steps.

  • Rental Property Investor · Indianapolis, IN · Member since 2015 · 46 posts · 16 votes
    9y
    William Lewis I really want to sell the house in NOVA so bad. It's going to be the sales job of a lifetime to get my wife to agree to it. I think it will still rent b/c it's in a great desirable area. My hope is that someone makes us an offer we can't refuse. Until then, I'm pulling the equity out to make that money work some. Thanks for the advice!
  • Rental Property Investor · Indianapolis, IN · Member since 2015 · 46 posts · 16 votes
    9y
    Chris Low Chris you are 100% correct about the cost of a vacation. With my wife and four kids, $2,500 for a week is a steal! My hope is that I can get some smaller deals that are close to turn key. Expanding my network some to get some guidance. BP has taught me a lot with the calculators and wealth of knowledge you guys give. Really cool to interact. I know this will all work out. I haven't been this excited about a business in a very long time. Thanks again!
  • Residential Real Estate Broker · Indianapolis, IN · Member since 2009 · 477 posts · 304 votes
    9y

    @Travis Darden

    Give me a call and maybe we can do a lunch.. I am up in Fishers.  

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