Hello, my husband and I are interested in renting out a guest bedroom and bathroom on the side of our home. We have four small children. Rules would need to be established. The guests we would be renting to would be m...

Timeline and Summary of Real Estate Experience with Altus IG Real Estate LLC / Altus Investment Group and Kevin DuganInitial Introduction (Approx. 7 Years Ago)My daughter and I attended a real estate expo in Los Angeles.We reconnected with my daughter's former schoolmate, who was active in real estate management and construction in Chicago.He introduced us to his company, Altus IG Real Estate LLC (also known as Altus Investment Group), managed by Kevin Dugan.First Property PurchaseWe purchased our first rental property.Kevin Dugan personally inspected the property and estimated renovations at \$30,000 (verbal estimate only).Over six months, we were billed \$59,000 in renovation costs.After delays and several emails, the property was finally rented.The first year yielded a 12% CAP rate with no missed rent payments.First Private LoanEncouraged by the initial success, my daughter convinced me to provide a private loan to Kevin.After one year, Kevin repaid the loan in full.Second Property & Second LoanWe purchased a second rental property and extended another loan to Kevin.Renovation costs escalated to \$75,000 without an itemized estimate.Escalation of IssuesRental income became inconsistent.We received invoices for unexpected expenses (e.g., cleaning and utilities that tenants were supposed to cover).Communication with the management team deteriorated.Tax documents were incorrect and required significant effort to amend.We began experiencing financial losses.Conclusion and Legal ActionWe sold both properties in Chicago, to halt further losses.Kevin stopped repaying the second loan—interest payments ceased completely.Multiple outreach attempts via phone, text, and email have been ignored.We are currently seeking legal counsel to recover the unpaid loan.The loan includes a personal guarantee from Kevin Dugan.Public WarningKevin Dugan presents himself as a real estate investment expert on Instagram.In our experience, his business practices were unethical and unsustainable—seemingly using new investments to pay off old debts ("robbing Peter to pay Paul").

There's no real tax benefit here, no forced appreciation (at least on your end), no loan paydown, etc.

Hi - I've completed about renovations in 14 years and have never come across this before. My insurance agent can't find me a policy that will cover more than $1m for a vacant house undergoing a renovation.I paid $1.3m...

. - Investment Duration: 30days (Investment + ROI in full)- Return on Investment: 45%- Purchased Price: $150,000- Rehab Cost: $30,500- ARV: $240,000- Minimum Investment: $30,500- Maximum Investment: $30,500- End Buyer Escrow Commitment: 20%Rehab Cost BreakdownRehab Cost Breakdown1.

I have no experience at all.

The ones who are well funded and can cover the short term set backs do fine, the ones who end up shocked when they deal with Johnny food stamps punching holes in their walls for the 1st time and panic sell, don't. 

It also reinforced the power of having a clear vision and end-use plan before demo day.Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

We ended up with different bank accounts due to loans from different banks on the properties, and it is kinda fun to see rent coming in and building a rental emergency fund, since only the mortgage comes out of that account.  

What's the best way to open a real estate company?