I've recently gotten into a deal that has not gone well at all. I was referred to a company called Chicago Action Investors who, in my behalf, took out a few high interest loans, and sold me a property with a promise to help guide me through the process. After a few months, I had to split ways with them because Aaron Vaughn, the owner, was feeding me lie after lie about the process. I started this deal last October and I'm still working with my lawyer to acquire the title because his lawyer documented the quit claim deed incorrectly.
The property seems to still have promise to possibly help me break even if I am able to complete the project, but I wanted to ask the forum for any advice for a newbie investor on what to do next. Once my lawyer is able to get the zoning certification, I will be able to start working on the project. The property is in Englewood, and it is a 3 flat. Once I am able to rehab the property, should I hold onto it as a rental or should I try to sell right away?
I'm trying to learn as much as I can about the Englewood area but if anybody knows the area well and has any advice for me it would be greatly appreciated.
PS. Does anyone know if there is anything I can do to stop this Chicago Action Investors from continuing to do business? I would hate for them to be able to do this to anyone else.
In response to this post.Alex entered our program which invests in real estate with no money down. The way this is accomplished is through high interest short term loans. The lenders that issue these loans are aware that clients put up no collateral or down payment, which makes the loans riskier for them. They are also short term. Unlike a 30 or 40 year low interest loan where a lender has a longer period of time to make money. Alex was made aware of these types of loans on our company FAQ.
I have tried to work with Alex on many occasions. To put it nicely, He has acted difficult.He seems to act as if he’s a know it all instead of listening to facts expertise, and reasoning.He also needed an additional partner with which I connected him with, Izyk Dudz but has been very uncooperative with him as well.
As far as Alex claim that the deed being incorrectly , it’s false. When Alex took on a partner the deed had to be amended to include his new partners interest.
The property can and will cash flow once it’s rehabbed. The problem isn’t the property, it’s Alex.
This all seems to be an attempt to slander my name and I’ve reported this to BiggerPockets. I’d advise anyone to stay away from Alex or suffer the same fate I have.
When we met, you explained that you only made money when we made money on the investment, but when it came time to purchase the property you charged me a $5k finders fee(the property that you bought for $10k yet charged us $70k). Then after that when your partner Sean explained the rehab process he told us that he charged a $12k fee for his services and also explained that we would not be able to meet with him during the project because he will be busy with other projects.
After that, I explained to you that I didn't want to work with you any further. When we found out that there was a problem with the "quit claim deed" that you recorded, you referred my partner, Izyk, and I to your lawyer, Dionte Stewart, who also made no effort to correct the quit claim deed. And now, 6 months later, I have a lawyer that is working to help correct the mess that you made, all the while, my partner and I are paying our high interest loans down.
On top of all this, we just found that my partner and I owe another $11k in taxes.
Say what you will but these are the facts.
Like I said, I hope that nobody else has to suffer how my partner and I have already.
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