Need advice on my current situation...

[Jacob Carlson]

Hello BP community, I have found myself in a predicament and I am in need of advice. So, here is the background: I bought my first investment property through Morris Invest this January 25th in Indianapolis. My plan was to invest with them to get my feet wet and get one rental under my belt then use the BRRRR strategy from there. I was told 90 days and the rehab would be complete and a tenant would be set up in it soon after. Without getting into too much detail, I waited 4 very long months for the rehab to be completed by Oceanpointe and was told several times to trust the Morris Invest system and be patient as this is a “hands-off” way of investing. I came to find out after 4 months that nothing had been done to my investment property. I paid $46,000 for rehab and the property and have NOTHING to show for it except personal lost money and even worse; the loss of money to a private investor. As of right now my property is a complete gut job and needs roughly $30,000 of work (As I was told by Harvey Property Management in Indianapolis). I have city fines piling up and no income producing asset to pay anything off. So, I am in need of advice in what to do in this situation. I, like many others, have been wronged by Morris Invest. Yes, I have come to realize that I should never have done this in the first place and should have done better due diligence - Omaha is a great market to invest in, but I was too excited by all the podcasts and youtube videos that Morris Invest made so I jumped on it. Now, I find myself wondering if I just sell the property as-is and be done with it taking a huge loss or try to rehab it. If I sell as-is I would get $5k-$10k most likely. That is not an attractive option but neither is paying for the rehab that should have been done AGAIN. I will pay back my private investor no matter what with the interest promised. Here are the options that I see: Find a Hard Money Lender to cover rehab costs and have a local contractor and management team complete the rehab (4-6 months) then sell it for as much as I can and pay off the HML and give whatever is left to my private investor. Then I will try to do side jobs and flips (locally) until I have my private lender paid off. Try to obtain a 203k loan for the rehab and roll my expenses into a mortgage for the next 30 years Sell my property. Not sure what implications this could have.. Am I able to write this loss off and benefit very much from that? I need to talk to my CPA If I sell as-is and take the loss I would get $5k-$10k Here are the numbers: Purchase price: $46,000 (P.P. + Rehab) Rehab costs: $25,000 (as quoted by Morris Invest) My rental income would have been $725/mo Currently looking at $30,000 rehab (as quoted by Harvey Property Management) If I sell after a total rehab I would imagine I could get around $55,000-$60,000. So $46,000 + $30,000 = $76,000. Sell it for $55,000 that means we still lose $21,000. As of right now I do not have a Hard Money Lender lined up as I am still trying to pick up all the pieces of this shattered situation and get a bearing on what direction I will take. I would be happy to give anymore information that would be needed. I just know that I am in need of some guidance and would like to move forward and on with my real estate career. It is unfortunate that this happened, but I am not the only one. There are hundreds of other investors that got swindled by Morris Invest and Oceanpointe. And so many more tenants that are affected by this “bomb” that is going off in several markets connected with Morris Invest/Oceanpointe. At the end of the day, I know that my wife and I will get past this, but it is a bad start to our real estate investing career. I am not turned off to investing though, I have never been more sure that real estate is my passion and I will whole-heartedly and more intelligently now, achieve it. My goal is to obtain 15 units, SFH or Multi, by 2023 (3 a year for the next 5 years) and I am not going to let my experience with Morris Invest stop me. If you have read up to this point so far, I truly appreciate your time. I have many questions and do not know exactly what to do at this point but I am going to take the little steps everyday until my wife and I are out of this mess. Your help and replies are appreciated! Thank you in advance Bigger Pockets!