All Forum Posts by: Colin Zhu

Also check out inspection videos for my property as well:

https://www.youtube.com/playlist?list=PLZesZrWooy5...

As Jim Cramer would say: Don't Buy! Don't Buy!

-Colin Zhu

I honestly don't know how he is still able to post Youtube videos and Podcasts while this mess is going on. If I ran a "Turnkey" company and something like this happened, I would drop everything else and focus 100% on making this right for my investors rather than worry about posting Podcasts and Youtube videos.

Priorities man.

I thought about commenting on his YT videos and posting links to inspection videos of his properties. However, people have tried that in the past and their comments end up getting deleted.

If we really want to get his attention, we should report his videos on Youtube. If enough people report, his videos will get flagged, and possibly get taken down.

Also, leaving reviews on iTunes and various other podcast apps with true stories, links to pictures and videos of the "rehabbed" properties, so that other potential investors are aware.

People have lost their kid's college savings, retirement accounts, etc. This needs to stop.

Thanks,

Colin Zhu

Crisis management can reveal a lot about how well a company is managed and its leadership. This is very enlightening is all I can say.

-Colin

@Tom J. Thank you for the response. That is an interesting email. Please do keep us updated on any major developments!

-Colin

@Tom J. Could you elaborate more on what was said in the email? Was it sent by MI or OP? Thanks.

@Maria Dantas I'm sorry to hear about your experience. Unfortunately, like many other investors here on BP who have worked with MI, we know exactly how you feel! Like you, I was also inspired by many others here to share my experiences here: https://www.biggerpockets.com/forums/92/topics/552...

While I didn't fly out to Indy yet, I did hire an inspector to do a simple walkthrough. There are major health and safety issues such as loose asbestos insulation, chipping lead-based paint, knob and tube wiring, numerous water damaged areas, cracks in the foundation, mold and fungus growth in the basement, roofing needs replacement, and lots more. The property is uninhabitable right now, there is no power (tree took out the power line), gas or water. This is also after Blue Sky told me that the rehab is almost "done".

The videos here will do more justice than my words will ever can: https://www.youtube.com/watch?v=aR2_h9onvFQ&list=PLZesZrWooy5jMteMfchzgdK3L9pRbaqTN

Since our property is supposed to be managed by Blue Sky and not Oceanpointe, I sent an email directly to Clayton over a week ago informing him of the property issues and the misrepresentation during the sale of the property. I told him straight up that OP knew about the all the material defects and did not properly disclose them to me before we closed and I've asked for a buyback. No response so far.

At the same time, someone from MI's office told me to work with their Construction Manager to resolve the issues in the video. I'm going through that right now and will let you guys know how that works out.

It's unlikely that a buyback is still a viable option, as it is getting more expensive for Morris to do that. What I do next will depend on if they can actually fix all the problems with the property itself. If somehow they can, I'd still hold the property for a few years since data show that Indy is still a good market. If they cannot, I will escalate legally.

The other investors have great advice, listen to them as they've been in this game longer than we have.

The important thing is to not get discouraged by this experience and try to learn as much as possible, even though it is an expensive lesson. I think it'll ultimately help you avoid pitfalls later not just in RE investing, but in other forms of investments as well. Do your own DD, do not easily trust, and always verify.

@Son D. It's just sad that there are so many bad MI experiences popping up on BP that it's hard to keep track. Thank you for tagging me to thread otherwise I would've missed it for sure. Please let me know if there is ever a class action...

Best,

Colin Zhu

Totally agree with you @Steve K.! 

Sure, all buyers have the requirement to perform their own due diligence and assess the risks, as with any form of investment. However, the seller also has the obligation to properly disclose the condition of the properties without misrepresentation, knowingly or not. The seller in our case clearly knew of the issues since they had an inspection done before I closed the property but failed to provide us with the report anyway.

I am thankful to have discovered the brave folks here at BP who have shared their stories. Otherwise, many of us would still be in the dark.

All I can say for myself is that although this experience hasn't been the smoothest, I have learned so much just by taking action and going through the process. Had I sat back and done nothing, I would have never met some seriously standup and helpful people such as @Todd Burton and @Jay Hinrichs.

Would I invest out-of-state again? You bet. But I won't be making the same mistakes for sure.

Best,

Colin Zhu

@Matt R. After this experience, I'm definitely walking every property before I buy. 

Clayton also had multiple guests on his podcast where they claimed to have purchased hundreds of properties sight unseen. So it's not really a valid argument here.

Granted, they probably have a team to perform their own diligence.