2 Wealth Show S2 Ep23 - 12 Debacles of Christmas
Justin Bogard and Super E discuss their 12 business debacles of the year.
Key Takeaways:
Resources and links discussed
Sponsored By: Integrated Health Solutions
We are passionate about your health and wellness and we know you want to enjoy a vibrant, pain-free, active lifestyle, but when you are in pain this seems almost impossible.
In order to be pain-free, move fluidly, and enjoy an optimal level of functionality, you need a personalized yet integrated, research based and clinically proven approach and that’s what we do.
To learn more visit us at
ihsindy.com
cryotherapyindy.com
About the Hosts
Justin Bogard – Note Investor specializing in performing Residential Real Estate Debt. He finds deals and acquires them for his own portfolio as well as educates investors while walking them through the process of owning a Real Estate Note!
Super E – Real Estate Investor specializing in short-term rentals and the management of them. She connects investors with short-term tenants and manages everything in-between.
Connect with the Hosts:
2 Wealth Show S2 Ep23 - 12 Debacles of Christmas
Justin Bogard and Super E discuss their 12 business debacles of the year.
Key Takeaways:
Resources and links discussed
Sponsored By: Integrated Health Solutions
We are passionate about your health and wellness and we know you want to enjoy a vibrant, pain-free, active lifestyle, but when you are in pain this seems almost impossible.
In order to be pain-free, move fluidly, and enjoy an optimal level of functionality, you need a personalized yet integrated, research based and clinically proven approach and that’s what we do.
To learn more visit us at
ihsindy.com
cryotherapyindy.com
About the Hosts
Justin Bogard – Note Investor specializing in performing Residential Real Estate Debt. He finds deals and acquires them for his own portfolio as well as educates investors while walking them through the process of owning a Real Estate Note!
Super E – Real Estate Investor specializing in short-term rentals and the management of them. She connects investors with short-term tenants and manages everything in-between.
Connect with the Hosts:
Welcome to the, 2 wealth show a show that shares how you can create real wealth for you and your family. I'm one of your hosts, Justin Bogard. And my co-host is Elizabeth Sickles, AKA super E. I am a real estate note investor specializing in performing residential real estate debt. I find the deals acquire them for my own portfolio, as well as educate investors while walking them through the process of owning a real estate note. My co-host super E, a real estate investor specializing in short-term rentals and the management of them. She connects investors with short-term tenants and manages everything in between. Our show was sponsored by bright notes and Elizabeth May aura. You can find out more information by visiting our websites at brightpathnotes.com and elizabethmaora.com. Hey everybody. This is Justin Bogard from bright path notes, and I want to wish you a very Merry Christmas very soon for episode number 23. And this is my cohost
Elizabeth Maora:Elizabeth with Elizabeth. Maora Merry Christmas,
Justin Bogard:Right around the corner too much, further away. Are you going to get coal or are you going to get presence? I don't know. You've been naughty and he'd been nice. I don't know.
Elizabeth Maora:Is that a rhetorical question? This is true. So what are you big Christmas plans?
Justin Bogard:Um, well Christmas is been slightly put on pause for some of the normal activity that we do. So my dad's side of the family has a very large home and he's one of 10 kids. Okay. So, um, not all the kids live in a state of Indiana where I live and you live as well. Um, so there's probably like four or five of his brothers and sisters that actually live in Indiana. We would usually get together on Christmas day, but because the family is so big and we're so spread out over different parts of Indiana, we felt it's best not to get together just for the risk of, I mean, as you know, those of you that don't know in Indiana, our risk is very high with the coronavirus right now. So just to keep things kind of at a, at a distance, we'll probably just, we're putting a pause on that part of it and just doing the smaller Christmas stuff like with, um, you know, my parents and stuff. And then maybe, um, my mom's side of the family's a little bit smaller, so it was moment, just a couple of people there. So that's kinda what we'll do for Christmas Eve and Christmas. How about you?
Elizabeth Maora:I'll be at my family. So we always, we typically have Christmas a little bit early, so it's usually the week before or so, so yeah, looking forward to it. Nice. So, Elizabeth, what do we have in store for? So We thought we would do the 12 debacles of Christmas where we're going to highlight some of the, not so fun things. Um, this year in our businesses, just as a little present for, for you all. So whether you're self-employed or you're not just some, excuse me, just some fun things that we've gone through. Um, this year that now looking back we can, while they still might not be fun things, but we've learned from them, right. So it's never, never a dull moment in real estate.
Justin Bogard:Never, ever a dull moment. That's right. So it's a, it's a play on the 12 days of Christmas, plus the 12 debacle of real estate, right. That's right. Kind of interesting. So how do you want to do this? You want to go back and forth. You want to start your journey start? What do you want to do?
Elizabeth Maora:I'll go first. So I'll start off with, um, so I started a cleaning business this year in July, and, um, the first time we, we just brought up a new property the very first weekend and our guests had a party that was beyond all parties. They, um, they broke the$2,500 couch. Like it was kind of in pieces in a way, um, and what should have taken us five and a half hours to clean. So I was actually, and I was on the cleaning crew that day. Um, it took us 13 hours to clean. So, um, it was, well actually it ended up being three or four of us total cleaning, but it was a total of 13 man hours of cleaning. That's how it was disgusting.
Justin Bogard:Well, this was like what you saw. One of those movies I'm thinking of my mind was like, um, where the kids, parents are out of town and he ends up throwing a high school party. Then the whole community comes over and there's like a car in the pool. And like, you know, just people everywhere and the slogans. It was like that.
Elizabeth Maora:No explosions. Thank God. Yeah, it was, it was not fun.
Justin Bogard:Oh, wow. That is a debacle. I can see you having more, more debacles like that than I do with what I do every day. Uh, well, let's say so I'm next. So let's see one of the debacles this year, um, more like egg on your face, I guess, if you will. So those of you that, um, kind of run a business or in marketing stuff, you understand that in order to keep your marketing predictable of what your turnout is going to be for certain events or in the future, you kind of gotta be consistent, right? And so when you get lazy and you, aren't consistent with your marketing, which is like, you know, sending out email blasts and notifications of social media and you'll wait too long, you don't have that people show up to your event. Elizabeth. So one of my debacle is this year was not high attendance to one of my events because of a lack of follow-through. Right? So that, that is a lesson learned very quickly, which is very easy to happen. Yeah. Yeah. You can get distracted pretty easily, but no excuses. That's all on me, egg on my face, eggnog on my face.
Elizabeth Maora:So the, you know, kind of the, um, I'm looking this way, cause my phone is over there, but you know, the thing that you can do so that you don't do that again is setting the reminders, right?
Justin Bogard:Oh yeah.
Elizabeth Maora:Um, all right. So I guess I'm, I'm good with number or I'm going with number three. So we had, uh, these are pretty much all going to be guest things because we have, I have a lot of fun guest stories. Um, I had A guest that when they checked in, they said how great the house was. And then they ended up seeing a mouse which can happen. This was one of our, we have all really nice properties. Um, you know, but at any rate, you know, we, we don't want my center. They are unwelcomed guests. Um, so it ended up, she got very, very nasty with us and then said, then used extortion and said, if you don't give us a refund, we're going to give you a bad review, which is, yeah. Which is great because the platform that we were on, they do not tolerate extortion whatsoever. But the other part of this was we gave them a complimentary late checkout because there was a mouse. Um, but then they weren't leaving the house because they said not until you give us a refund also, are we going to leave? You're not, yeah. You're not staying in my house for free. Um, so, you know, sometimes you just have to be a little bit of a heifer. So, um, they left, so that's, that's debacle.
Justin Bogard:Let's keep, let's keep it going there at Christmas. Maybe we should have had the 12 non debacle, make it more fun. You guys don't get to hear the bad. And the ugly part of the business you'd hear the good mostly, right. But in all investing really there is good and bad and ugly. So, um, speaking of good, bad and ugly. So number four, I guess for me will be, um, when you are raising money and you are in the business of real estate, you're always looking for money, right. To help people fund deals or help put transactions together. And one of the things we do in real estate Elizabeth, as you very well know, is your due diligence, right. On a property or on a note, well, how many of us actually do due diligence on, um, an investor? Right? So we had, um, this is this every once in a while where we get an investor that, um, kind of seems like they're serious, but you don't really vet who they are or what kind of, uh, situation they have. Um, and they just, they talk a big game, but they really don't have the money. And so it's happened to me, to where somebody had kind of put me down a rabbit trail of, uh, just constantly doing all this extra leg work with them and finding deals and stuff when they actually really didn't have any money. So, because I didn't follow through and look up, like if they had a legitimate company and stuff like that, I probably wouldn't have spend my wheels, you know, chasing around deals and putting stuff together for them as well. So I, I kind of learned my lesson on doing your due diligence on your investors.
Elizabeth Maora:That's the see that was number four. So actually, so number five, I will just echo that. Um, normally I charge whenever I go and look at a property and then I do a short-term rental analysis. I ended up not charging these people, um, because there is an opportunity to also manage, not only manage a property for them here in Indianapolis, but also they had out of state properties, um, West of here, I'll just say that met with him a couple of times went and looked at their property here, gave them full estimates, everything. And then, um, and they said, okay, well, you know what, we're just going to do traditional rental on this property after all. Well, it turned out they actually, they hired somebody else and the other people did the interior design, which we do and the staging and everything. And we had done a lot of work on this. So yes, that would be my Debacle as well. Lesson learned, trying to be nice,
Justin Bogard:Trying to be nice. You try, you try to be the nice guy, you know, give some free advice, some free stuff. You know, you want it to come back to you. Sometimes it doesn't work out. Um, so, um, I would say probably within the last four or five months, a six out in my mind where we've had a borrower for one of our loans and they had reached out directly. I'm not even sure how they'd got directly to me, but somehow they were able to research, you know, at least to get a phone number to me. And they said, Hey, this is, uh, mrs. Such and such, you know, at such and such address. And I'm looking to, um, sell, sell my home and my real estate agent totally. To, uh, to contact you so that you could, um, like basically I close this deal. I'm like, what? You're, you're talking to the bank here. And so they, they, uh, really didn't understand what was going on. So instead of me pushing off my loan service or I'm trying to solve a problem here. And so then I ended up dragging this conversation on and having a couple conversations. Instead at the end of the day, I just said, okay, I'm not getting anywhere with this lady. You need to get with my loan servicer. And I give them such and such information, follow up with my loan servicer. They reached out, they had some, and then they said that they have their house under contract to sell. And then 30 days goes by and I noticed I haven't been a payment made. And then another 30 days go by, that was to have payment has been made. And I'm like, okay, what's going on now? And so I have my loan servicer, I try and contact them. And I actually tried to contact them as well, and they have gone dark. So in the midst of, uh, you know, maybe I have hedged them to not want to worry about making a payment because they're frustrated with me because I'm not a loan servicer. And I didn't, I worked with them. But anyway, long story short or long story long, actually, um, they may or may not be making a payment. So, um, these things happen in the business. Um, like I said, it all looks great on paper and every now and then you get some weird situation this year. This was my weird situation. I thought I was going to get paid off and it ends up being a, I've been ghosted so far.
Elizabeth Maora:Ooh. Is not a good thing to be ghosted. No, that's number six. Right?
Justin Bogard:Uh, that was I'm I'm even, so that was my number four, right? That was my third. Was that my third one? Oh, my third one. So six. Yep.
Elizabeth Maora:Okay. Writing
Justin Bogard:Stuff down. We're doing this off the, off the cuff here.
Elizabeth Maora:This is totally off the cuff. Yes. Uh, my number seven. So, um, you know, with everything going on this year, um, we actually, so we did have a, I did have a set what we're supposed to do with toilet paper. So we're supposed to leave two toilet papers out, two extra rolls in every bathroom. Um, and one of our guests stole all of our bathroom tissue. So
Justin Bogard:This is during the pandemic. Yeah.
Elizabeth Maora:This was kind of at the beginning when, you know, when things were really crazy. Yes. So, so I will say we lock all of our supplies and that's why everything else is locked up, but we do have to leave out extra toilet paper. Cause we never know if a guest is going to be there for a weekend or for a month. Um, but yeah, so people will still toilet paper.
Justin Bogard:Unbelievable. Who would have thunk 2020 has brought toilet thieves, toilet paper thieves to do our world.
Elizabeth Maora:That's right.
Justin Bogard:Okay. Let's see. So that was seven. So this is eight. Um, man, I'm trying to keep it within the past year. So, uh, off the cuff is a little, little, a little difficult now let's see, um, stuff that's been brought up to me. Um, well, um, doing your taxes. That's a good one. So, um, this guy here as been procrastinating too long and so I had to wait till the very last second to file my taxes. And were people not happy with me,
Elizabeth Maora:Your 2019 taxes?
Justin Bogard:Yeah. Okay. Yeah. I just wanna cause uh, the, the laws that allowed us to not have to file at certain times and pushed it to whatever it was October or September, September. I remember now, but for, for the business taxes, it is, well, if I'm sorry, business taxes were filed in September. I believe in personal taxes. I think it was a personal taxes I was kind of behind on. And so people were not happy with me the day of filing when I had a lot more questions and I should've been more prepared. So, um, yeah, so that's, that's the backlash that I got for, uh, waiting to the, to the, probably the 13th hours, uh, the 11th hour, uh, to get, to get things going to finish that. So, um, lesson lesson learned there definitely be more prepared with your taxes.
Elizabeth Maora:And I will say I had a strategy session with my CPA. Do not wait until November to have a strategy session. You should be having a session every quarter, at least with your CPA. So, um, yeah. So just a little, little extra present for you on that one. Yeah, exactly. So, uh, so this is another fun guest when I was actually on call during this time during part of the time we had a guest that was staying with us, who, in every message, um, we're going to call her Paula. Um, so Paula would put in every message. I'm 83. I can't tell you how many times I, I read that. I don't know what that had to do with anything. And what was so interesting was when she finally checked out and complained about anything and everything in the house, um, I can't even tell you how many messages we got from her. So, um, it ended up whenever she checked out, I had one of my teammates was going there to do a couple of things before cleaning got there. And she walks out with a cat that wasn't disclosed. Um, so my teammate is taking pictures of this guest with a cat. The guest sees her taking picture, sends a message immediately saying, Oh, this isn't my cat. It's my granddaughter's cat. Um, it, it was the most bizarre thing. And then she ended up, she was with us for about tonight's and then she ended up, this is really crazy. She left, um, actual cones that are construction cones, the orange ones. Um, she left some cones in the backyard, off the porch and asked if she could come back and get them later and a chair that should have not even gone to Goodwill, but should have gone into the dumpster. It was so dilapidated and just, I would never in a million years sit on it. So I saw this because I went to the property also. So that was my 83 year old Paula who told us every little thing about the property and then some, and then, Oh yeah. And then she said she was going to, I mean, she can do it if she wants, but she said she was gonna turn us into the health department. Like, I, I, I don't, I don't know why. Yeah. You never know what kind of a gift you're going to unwrap with your guests.
Justin Bogard:Very interesting. All right. So that was nine, 10. All right. So something that is, um, I don't think it happened to me this year, but maybe right before the year, 2019. So we have, um, I had somebody that's wanting me to sell their loan to them, Mike and I will call my mom and pop creator. Like they just have a property that's sold on land contract and I'm in, uh, engaging in the conversation with the person selling me the note and everything's looking good. I give them pricing, everything's happy. And we start to move forward. They let the borrower know on the property that, um, Hey, I'm selling this loan, blah, blah, blah. I'm just letting you know that you're going to be contacted by this person. And so they're going to be the new owner of the note. And instead of paying me, you're gonna be paying them. He's thinking, all right, this shouldn't be a problem because he actually knows this person and he's actually works with them. So I think this guy is the boss of, of the, of the employee. And the employee happens to be the borrower of this house that the bosses has sold to him right on land contract. And lo and behold, the borrower billows, ed gasket. I mean, this guy goes off the reservation. He's talking about suing his boss. He's talking about suing me. And he's talking about just like, he's getting a lawyer involved. He is. So he was so determined that we are taking away all his rights and taken away his house and we're going to sell it from underneath them and blah, blah, blah. And it's like, Whoa. So this, so the seller calls me and is like, Justin, I I'm sorry, but I can't, I'm not able to move any forward. Cause this guy is threatening a lawsuit and you know, blah, blah, blah. And I don't know, it was like, you know what I said, don't worry about it. I don't need this drama for this deal right now. So it's fine. But I had to put a lot of, I say a lot of effort into it and get to that point and ordering due diligence and stuff. But it was just, it was just a debacle. That's the best way to put
Elizabeth Maora:It. Oh man. Sounds
Justin Bogard:Like never heard of that. My entire life of a borrower, just going off the reservation and threatening to Sue over changing ownership of a contract. Um, but yeah.
Elizabeth Maora:Wow, wow. Fun times. Yep. All right. So I'm a saving, this isn't the best, but um,
Justin Bogard:We can go into extra extra innings if we want to.
Elizabeth Maora:Well, no, no. I'd for this one to be, I don't want anything else like this. Um, we had a really, I'm just gonna, I'm not gonna say exactly what cause it's super, um, embarrassing, but we had a really unfortunate event. I will just call it an event happen at one of our properties. And what's so interesting is I was cleaning on that Sunday. So Sunday's a big checkout day for us obviously. Um, so I have a little pre team meeting with the cleaning team. Um, whenever we have a lot of cleans on Sunday. So I had that meeting. I was like, well, I'm like gang. I haven't heard anything. I think we should have all good cleans today. You'll, let's go get it. And about two hours later, I get a message from somebody else on one of the platforms, a neighbor saying, um, Elizabeth, do you know about all the activity at your place last night? And so I messaged the guest and I was like, um, the neighbor just told me this, this and this happened. And I mean, very, very extreme. And she's like, Oh, I'm sorry. My phone went dead. And I, I mean, the police were involved. I got a call from a detective that Sunday night, I mean, very extremely major major event. Yeah. And so, um, yeah, so that was, I do not want to ever and wrap a package like that again. Um, but what was interesting. So my neighbor and my neighbor was super cool about it. Super, super cool way cooler than I would have been. So this is, um, we have several units at this place and I sent a message. We have some longer-term guests staying in the, in the unit next door. So I sent them a message and I said, Hey, I know there was a lot of disturbance last night. I just wanted to apologize. Please know, we're making these changes. It will not happen again. And the guy, he's the CEO of the company, he has workers here working and he's like, Oh, he's like, my guys didn't hear anything at all. And they were going in and out cause we have remote walks so I can see who's going in and out the doors. So the guys were there. I don't know how they didn't hear what happened. Um, thank God they didn't. But yeah. So sometimes it's good that people are not paying attention to what's going on. I would just say that that can be a Christmas gift.
Justin Bogard:Wow. That's, I'll have to hear the whole story of that. I will tell you off camera. Okay. Let's see. So number 12, the 12th debacle, a real estate here between the both of us. Let's see. Um, I got a couple of run through my mind here. Let's see. Um, I got a really silly one. It has to do with, um, when you own some of these land contracts, um, me, the bank is going to be on the deed just while the borrower lives there, because until they pay the loan off in full, they, then they get the deed transferred over to them. Um, so sometimes there's like homeowner's associations, there's, you know, real estate taxes and there's homeowners and insurance and stuff that all could have the bank, the lender's name on it. So I'll typically get those tax notices. And those maybe if there's a code enforcement violation or there's a, um, a homeowner's insurance association stuff, uh, fees need to be paid and then I'll typically scan them in and send them to my servicer for my servicer either to mail them out to the borrower or email the borrower, communicate to them that way. And so I believe it was a homeowner's association fee for this. Uh, it was like a gated community, if you will. It was a gated community for, I think, manufactured homes, if that makes sense. So it was like this, this nicer area and more kind of a little bit more remote. So it's, I think it's like on a Lake or near a Lake to where, you know, it's just manufactured homes just work out better there as opposed to, you know, largely built homes. So anyways, uh, we send out this notice and stuff because I'm getting these assessments from, not that I'm getting these bills from the homeless association saying like you owe such and such bill and it's like, okay, you get another one, send it off. Okay. Get another one so enough. Okay. And I'm like, it's on the surface. Or like what what's going on? Like, I don't understand, are they just not getting it? And like, yeah, we keep sending it to them in the mail. And um, we called them up and they said that, uh, they said their neighbor is taking the mail out of their mailbox. So they weren't receiving their mail.
Elizabeth Maora:Oh my God.
Justin Bogard:Excuse than thAT that my neighbor is stealing my mail. Well, did you know that as a federal offense to go in someone else's mailbox, that's not your own. It's like, you gotta be kidding me. I'm like, So that Is the one that stuck in my mind was more funny. So it's not a big debacle, but it was just annoying to have to deal with the small challenges of loaning along lane contracts.
Elizabeth Maora:So you never know.
Justin Bogard:Yeah. So that was, that was pretty good. Elizabeth, we had 12 little debacles in there, off the cuff.
Elizabeth Maora:Absolutely. Yeah. We're really excited about the holidays. You know, spending time with friends and family, that's always a really good thing taking some time off. And I just want to encourage you all to also be thinking about your goals. So, you know, not only for next year, but in three years and five years as well, that's always a good thing to be doing this time. Whenever you get a little bit more time to actually stop and just think for a minute about where you want to be, where you want to go.
Justin Bogard:That's a great point, Elizabeth. Cause I can't think of a better time when things slow down enough just in the world in general and everyone, you know, is on kind of me time, if you will, for a few days. And that's, that's exactly right. You should reflect on the future and just future pacing yourself five, 10 years down the road where you want to be, we want to do
Elizabeth Maora:That's right. So
Justin Bogard:I was going to say, this is episode number 23. And um, we have, are going to have one more episode for this season, season number two. And we're going to end it with 24 episodes because I think we started late this year. We didn't get all 26 episodes then, but that's okay. We can, we're going to, we're still going to be on for season three for all of our fans out, there are millions and millions of fans out there. That's right. Put it out there. Right. And don't forget to check us out on our YouTube channels as well to watch the video cast of any episode that we have. It's on bright path notes, YouTube channel and Elizabeth Maora's YouTube channel as well. So do you have any closing thoughts for today? I mean you had a good start, started your closing thought. Did you want to finish anything else or just enjoy this time? Enjoy your friends and family. Absolutely. Couldn't state that any better myself. So everyone hope you have a happy holiday, a Merry Christmas. And we look forward to having one more episode this season, we'll wrap it up and then we'll start fresh and season number three. Thanks everybody. Episode 23. So next time see you guys 2 wealth show is produced by Justin Bogard and super E sponsored by Brightpath notes. And Elizabeth Maora. Thanks for listening and watching for our show.