Putting My Investors First: The Story of 208 Scott Street

Imagine waking up one day to discover that a building you own has been condemned, leaving your investors' money and your own financial future hanging in the balance. That's exactly what happened with 208 Scott Street, a journey that tested my resilience, determination, and unwavering commitment to protecting my investors' capital.

In April 2022, what seemed like a routine property turned into a nightmare when the city suddenly shut down 208 Scott Street. The building was condemned, and all tenants were ordered to vacate immediately. What started as a minor setback became a full-blown crisis. Despite the building’s solid structure, the city mandated that nearly everything else be brought up to code. We ended up replacing all the electrical systems, plumbing, windows, doors, the fire alarm system, flooring, toilets, showers, drywall, and paint. The renovation wasn’t optional... it was mandatory if I wanted to avoid a total loss.

This was a scenario no one could have predicted, and I hadn’t planned for it. With the building uninhabitable and generating no income, I was faced with an impossible situation: finance a complete overhaul or risk losing everything, including my investors’ money. Selling the property in its current state would have meant significant losses for everyone involved. But I wasn’t willing to let that happen. My investors trusted me with their hard-earned money, and I was determined to protect their investment—no matter what. I hired the wrong property managers and the tenants got out of control. The pictures below highlight how bad things got... Think broken windows, graffiti, bed bugs, cockroaches, trash everywhere, needles, and urine smell. To this day looking at these gives me anxiety.

Making matters more stressful, I had personally guaranteed the loan, so foreclosure would have meant the bank coming after me. As I explored financing options, I quickly realized that no traditional lender was willing to touch this project. Those who were willing to offer loans came with sky-high interest rates and exorbitant fees, terms that would have made the financial burden nearly unbearable.

But I wasn’t ready to give up. I made a series of tough, personal decisions. I sold my own home, liquidated my stocks, crypto, and savings. I put everything on the line to make sure that this property would rise from the ashes. At one point, my family and I were down to our last $2,000, a razor-thin margin that barely kept us afloat while we waited for the building to be ready for tenants again.

Managing this project was a logistical challenge as well, as I was handling everything from out of state. I scrambled for contractors, oversaw the work remotely, and ensured every detail met the city’s strict standards. The renovation took 18 grueling months. Months filled with stress, uncertainty, and countless sleepless nights. But giving up was never an option.

Finally, over a year later in December 2023, 208 Scott Street was ready to welcome tenants once again. The building passed all inspections, and we reopened gaining full occupancy very quickly. It was a moment of immense relief and pride. The property is now low-maintenance, and my investors’ capital is safe, just as I promised it would be.

But this victory comes with a personal cost. When we eventually sell 208 Scott Street, I will face a significant 6 figure loss. This isn’t the outcome I had envisioned when I first acquired the property, but I’ve come to accept that sometimes the most important battles aren’t the ones that result in personal gain, but the ones where you stand by your principles, no matter the cost. Throughout this process, I worked closely with my investors, keeping them informed at every step. They knew I was doing everything in my power to protect their capital. In the end, that’s what matters most to me—protecting their interests and ensuring that their trust is well-placed.

This experience resulted in several invaluable lessons that I will carry forward into all future projects. First and foremost is the importance of always working closely with the city, even when you don’t expect them to intervene. Proactive communication and a solid understanding of what the city expects can save a lot of time, money, and stress down the line. Just as important is active management of the manager. I trusted the property manager to handle things and trusted what they told me without verifying. We now have a much higher expectations of our property management partners and require video and photo evidence alongside regular reports.

I’ve also gained a deeper understanding of project management for deeply distressed properties, the various forms of financing and their associated costs, and how to identify truly great property managers. Equally important, I’ve learned to be quicker in firing poor property managers and much more aggressive in evaluating and walking away from projects like this in the future.

This experience further cemented my commitment to my investors. I will continue to prioritize their interests in every deal because, at the end of the day, trust is the foundation of every successful partnership. While the personal cost has been significant, I am more committed than ever to the success of my future projects. The lessons I’ve learned will drive me to continue finding great opportunities for my investors while protecting their capital, because that’s what they deserve.