Does that mean that education doesn't work too and is a bigger scam that what you are making this out to be?

I believe it tends to give me a slightly lower return, because the sponsor is going to be more careful, and if there is a severe downturn will prevent me from taking catastrophic losses.

For some context, I have been listening to Bigger Pockets for over a year now and have big ambitions to get into investing.

If you are on cash accounting, yes you could do that.On the other hand, you are ignoring carry-forward losses. 

I know bigger pockets says midwest but I am front there and it sucks. 

Taking the loss now is preferable to paying out monthly for the privilege of being a landlord.

Otherwise, you may be limited to doing deals that are less than or equal to the equity in your home, and miss out on some bigger opportunities.That said, fix-and-flip loans will have higher fees and interest rates than most HELOC's.

Make sure both parties fully understand and agree on:How profits/losses will be split Who is responsible for what (e.g., repairs, management, communication with the seller).Exit strategies in case things don’t go as planned.When you do find the right partner make sure to create a joint venture agreement that outlines all of this clearly.

It may be time to cut your losses and move on from this real estate. 

I am not a rookie investor, and probably have taken enough Losses since 2001 to make most of you quit.