All Forum Posts by: Todd Fry

 Day one I congratulated you on your strength to come forward with this.. I understand its very tough to admit in public that you got into a deal that you thought was one thing but it was and is another.

we have all lost money in real estate myself included.. and I will lose money in the future as well NO one is perfect in this game if your going to be engaged in it at any meaningful level.

When you got offered a full rescission I thought you should have taken that.. but again your call.. and as you stated this is far from over for the principals of this company.. when you have one person that has the strength to do what you did there are 20 more in the same boat but too timid to post.. OR they don't know about BP..

AS much as anything besides buying a home that was suppose to be rehabbed that obviously was not.. the asset class itself is simply not as Morris portrays it or anyone else for that matter.. These homes in these areas are just what they are.. Older functionally and economically obsolete and will be tough to make work long run no matter who what or where you buy them from..  they just are.. I know I owend 350 of them LOL with a big slug right there in Indy.. you need to buy in better areas and better homes to start with.. then your experience will be different.. I can see how inexperienced first time investors got sucked into someone like this with all his one line presense and credibility.. its the same way TV flip guru's become faces for HOW to seminars.. that people pay 40k to go to.

Just tell the BP crew  you spent 40k on a bus tour and see how many say that is crazy.. this is just another version of guru taken advantage of those that are just starting out. at least that's my read on it and opinion.

What do you mean by only receiving half the rent? Are they making partial payments or is Oceanpointe giving you money? I am not sure which is worse.

@Todd Fry, 

Thank you for posting this, hopefully people will read about your experience before moving ahead. I think turn-key companies all have the same flaw- none of them are truly turn-key. Many of them even openly state that they're selling you a house over market value to account for the work they're doing(or will do- I don't really remember how they justify it, but there can be no justification for paying more for an asset than it's worth.) If selling something for more than it's worth is part of their business model- and it seems like you overpaid here- that's a doomed business model. It's like trying to sell $20 bills for $25. You might find some people willing to do that if you promise them something nice later on- but eventually, the Ponzi-like nature of such a scheme will become self-evident to all.

Many in this thread have advocated selling the house and moving on. I don't know Indianapolis well enough to agree or disagree definitively, but if you can possibly hang on and make your investment cash flow positively, I would suggest doing so, even if you could make the equity work slightly harder somewhere else. What you're getting now is an education- even if it's a slightly painful one. If you handle this properly, this project can become a springboard for future investments.

It sounds like you're on your way towards getting competent management. That's definitely the first step. After that, run the property awhile- you'll quickly find out if your new manager is worth his/her salt. A great manager can turn a dog around- a lousy manager can turn a winner into a dog. If your manager can make this property work, then you know you're working with a great(or at least 'good') manager. Leverage that- work with your new team member to find your next property. A good manager will be able to tell you which properties are good or bad deals- after all, he or she will be managing it in the future, so it behooves management to choose well.

And since this is your first property, I'm going to make an extraordinary recommendation. Give the tenants your email address(not your real one- kind of a junk one that you may check daily. I use my old yahoo email for this purpose- it doesn't pop up on my phone, so it doesn't distract me.) If the residents have problems reaching your manager, your tenants will let you know- loudly and quickly. After management moves from the 'trial' period to the 'trusted' period, you can stop doing that with new tenants. 

Good luck- turn those lemons into lemonade. 

Michael

(PS- I think you should've left the videos up. You folded on that negotiation too easily. Maybe it should've been more like- "OK, Morris, I won't pull the vids, but I'll publish a retraction and publicly state how you've made it right once you've done so." I understand your self-interest - but when someone sells something that isn't promised, let the sun shine brightly on the whole transaction.)

 The blind leading the blind leading the blind 2X is best case I guess. 

Maybe it also possible MI could be liable for some investment misrepresentations. Not to create some ambulance chasing case but if you bought a dozen of these for your "freedom number" maybe there is that story too. 

That is also unfortunate the OP pulled the truth videos at the request of Morris. That could only serve to hide the reality of these properties and locations resulting in more future mislead BP investors. 

Very shady practice for Morris to use that video removal as leverage on OP.