Categories
Atm Deals Joint Ventures

What Would You Do?

So I’m in the midst of a little situation that to put it really gently is pissing me off 🙂

Kathy and I started in the ATM business partnering on 2 ATMs with a guy who has been in the ATM biz for a while. We partnered with him to learn the ATM business. So in a nutshell we gave up 50% of our profits on our 1st 2 machines in order to a) learn the ATM business from someone who is experienced and b) get into our first 2 ATMs for less money then it would have cost if we were doing it on our own (because the partner pays more up front for the ATMs.)

Now, I want to apologize up front because this may be a long post but I need to vent and I would like your honest opinion. This guy I knew from real estate. He was heavily involved in the investors group that I use to belong to, as a matter of fact he was the past president of the group. So it was a guy I trusted (btw, I use his leases for my rental properties.)

Notice, I’m not mentioning his name but I’m sure you can figure it out.

Anywho, we decided to partner with him. He told us in the beginning that it’d be a 60/40 split for the machine (we pay the 40 because we’ll be filling with our cash and we pay the monthly phone fee.) No problem. We are learning the business and it’s the cost of business I am OK with this type of partnership and I offer this partnership agreement with other folks that want to learn the business.

Big difference though between he and I? I have INTEGRITY!

You see he said the price of the machine is $3,000 so our 40% is $1200. Ok no problem. Turns out the machines were USED, not NEW. The NEW price was $3,000. Turns out, he had the machine in a bar for a while then took it out and had it in his garage and then decides to partner with us on it.

Yes, you are right, if you are thinking that I should have done more due diligence up front. Yes I should have…and I’m not disputing that fact.

Anyway, we’ve lived with it for a while but now we decided that we wanted to buy him out of 1 of the machines. So we went back to the contract and contacted him. Wellll Mr. Integrity quotes us a price of a buy out that is 11+ times what it should be based on the contract.

He said “Oh I forgot to add this in the contract, so this is how we figure it out.” lol Of course, I explained to him, VERY NICELY mind you that that is not how contracts work, you don’t try to add shit to them after the fact because you screwed up.

I told him that I understand he won’t accept the buy out price that is calculated based on the contract so let’s figure out a mutually agreeable price. Truth is, I just want to be done with this jerk!

Of course, we’ve been going back and forth for a week now because people with no integrity have no idea that what they are doing is wrong and they think they are 100% right and within their right to think so.

Btw, I even told him that we know it was a used machine and he was basing our partnership off of new pricing….he admitted to all of that, but still…doesn’t think he did anything wrong. He wants to keep telling me what he paid for the machine.

So I told Mr. Real Estate/ATM expert that just like in Real Estate…where a buyer doesn’t care what you paid for the house, I don’t care what you paid for the ATM when it was new. It’s not new anymore and it certainly wasn’t new when we bought it.

I could go on and on and I have to tell you, for any of you that know me well……I have been VERY good in my emails back and forth to him. Very respectful and professional, but that’s about to end very soon.

Sooo n ow I ask..what would you do?

Would you continue to try to negotiate with this clown knowing that you are ultimately losing money on this deal because you overpaid for the machine in the first place? This option at least ends 1 partnership with him.

or

Would you keep the machine and the partnership knowing that a) he’s getting paid 50% every month and b) knowing that it doesn’t make good money and we really want to put it somewhere else….we’ve left it there this long because we knew we wanted to try to buy him out. And the buy out calculations are based on # of transactions the ATM does at a location.

or

Do you……(fill in the blank.)

Sorry for the rant…I generally try to be pretty positive and I’m very grateful that I learned the ATM business because of these 2 partnerships but I have a limit with people who lack integrity and I’ve pretty much reached my limit with this guy.

Big lesson here folks: BE CAREFUL WHO YOU PARTNER WITH ON ALL OF YOUR DEALS!! ALWAYS DO YOUR DUE DILGENCE NO MATTER HOW WELL YOU THINK YOU KNOW SOMEONE!

Did you like this? Share it:
Categories
Joint Ventures Passive Income Wholesaling

Gobble Gobble Everyone!

happy turkey day

I’ll be back to business on Friday. Yesterday I spent a lot of the day doing crap and then filling our atm’s. The gentlemen’s club is far so it takes some time to fill it (but believe you me, it’s worth the hour and 15 min. drive! lol)

Tonite, I got our chinese restaurant to sign a 5 yr. contract with us 😉 That atm is kicking a$$$$$$$$$$$$$$$$$!

Oh and I spoke to a local wholesaler and he has 2 deals under contract and we’re gonna work a lil joint venture deal together and I’m gonna try to market the heck out of his properties so I can make some cash.

One more thing, I’m gonna try to sell probate leads. I learned about that concept from Scott’s blog Struggling Investor. And I already talked to Brandon (Kathy’s 17 yr. old son) about getting the leads from the courthouse for me. He’s game. hehehe

Did you like this? Share it: