They are losing lots of money, yet people in RE circle believe eventually they will figure out the right model and make a profit on it.It is only available in lowe price tag area.

But he downgraded his house in Orange County to move in a condo so he can use the excess cash to invest in the mid west.. fortunate enough he has someone like me who he can trust to manage his properties.

You WILL lose, so do you want to leave and get paid or get thrown out?" 

You do realize that if you miss that yearly payment you lose the house back to them along with the 50% you put up?

That means you are losing access to at least 25% of the total value of the property.If you take on a partner, there is far less cost (if any). 

Whenever you’re next to something less desirable, yoU are goIng to lose some tenants, and will therefore likely lose a few dollars off your rent rate.

You are far too soft and are going to lose money as a investor.

Live and learn.My advice will hopefully prevent them from taking you to court where you would likely lose if you try to collect any more from them. 

YUP  I know exactly what your doing and the asset class that sells on contract and these are prime targets better for them to sell to you for a little more money than get hammered by the local wholesalers who will just be out for blood.. with no care in the world how much these folks lose.. that's what wholesalers do.. its their job..  

Lesson learned for next time and I hope you don't lose too much money after going through this.