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$1.2M Investment Mistake-1

$1.2M Investment Mistake

Embarking on the real estate investment path has been a rollercoaster, and today, I’m laying it all bare. I’m Markian Sich, CEO, and founder of ActiveDuty Passive Income, and I want to share the invaluable lessons I’ve gained from the three major missteps that significantly impacted my real estate ventures. These weren’t just bumps in the road; they were substantial setbacks that came with a hefty price tag.

The Million-Dollar Property Management Dilemma

Let me take you back to 2017 when my parents and I took the plunge into real estate by investing in a $2.6 million, 56-unit apartment complex just outside of Indiana. The excitement was palpable, but little did we know that our first and, at the time, the biggest mistake was just around the corner.

Choosing a property manager ill-equipped for a multi-family property proved to be a costly error. Their lack of experience and focus on single-family investments set us back financially and damaged the property’s reputation. It took a painstaking two years to recover, but with a new property manager in place, the property is now thriving and set to be worth between $4.5 and $5 million.

Contractor Woes and SBA Loan Challenges: A Tangled Web

Fast forward to the next chapters in this saga—mistakes two and three—where I grapple with a bad contractor and the complexities of an SBA loan. Hiring a contractor post-COVID seemed like a necessity at the time, but it spiraled into a nightmare of subpar work, delays, and additional financial burdens. With approximately $700,000 spent out of pocket and an SBA loan in the mix, I share the challenges faced in rectifying the situation.

Adding to the complexity, the third mistake revolves around the SBA loan itself. I delve into the unforeseen impact of opting for a floating interest rate during a period of unprecedented rate hikes. The interest rate soared from around 5.25% to a staggering 9.5%, doubling the monthly interest payments.

Finding Light in the Tunnel and Navigating Future Paths

Despite the hardships, I remain optimistic, viewing these challenges as valuable learning experiences. The properties, despite setbacks, are projected to increase significantly in value, providing a silver lining to the arduous journey. I stress the importance of flexibility in business models, underlining the need for fixed-rate loans, especially for those entering new asset classes.

In Closing: Community Support and Shared Insights

As my journey unfolds, I extend an invitation for questions and discussions. My goal is to create a space where we can learn from each other’s experiences and navigate the complex world of real estate investing together. The overarching theme of community support and learning from mistakes echoes throughout, underscoring the resilience required in the world of real estate investing.

In sharing my real estate journey, I aim to provide a candid and personal perspective on the challenges and triumphs that come with navigating the dynamic landscape of real estate investing.


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Our team strives to educate, mentor and empower active duty service members, veterans, spouses and military families to reach financial freedom through creating passive income through real estate investing. Our goal is for Active Duty Passive Income (ADPI) members to own as much of America as possible.