efete1 0 Report post Posted November 2, 2011 Hi all Hope all is well and everyone had a great Halloween! Well, I have a good story and lesson for all. I was marketing a CA deal for a seller. Super nice guy and we found a tenant/buyer. Owner liked him and he wanted to move ahead. They set a date to meet and sign papers but unfortunately it was a day I was OOT (for the whole upcoming weekend) and that was the only day they could do it (buyer was traveling from another city and had 1 week to move ahead, and the owner wanted to go ahead as they were leaving for another state and if it didn't sell were just going to rent it to their son). They both seemed trustworthy and the buyer sent the initial payment to me via mail prior to that date. Option fee was 5k but buyer only had 4. Owner wanted to keep more of the $ as it was a nicer house (over 200K) and give me 1k instead of 3K (we were going to split it originally; I don't normally do that but was doing so to make the deal work). Apparently they decided to "change" some items on the paperwork (my paperwork). Buyer cancelled the check as they decided on their own to have the buyer pay the whole 4 k to the owner and then the owner would pay me the 1k. I called the owner and he hasn't returned my calls. He's an older, religious guy and he definitely didn't come across as the kind of guy who would screw me over. Initial signed agreement was an option to lease option (it was the only form I had on me when I met the owner) but the final agreements were the full set of agreements like Michael's. They had my company's name all over it and the assignment form, etc. Not sure I can do anything legally; ie threaten to evict this guy (as the original agreement gives me the right to LO and sublet the house) unless they pay and the forms had my name on it, etc. I might try but it's probably not worth the hassle. Lesson for all: never let the buyer and seller meet, even if all the agreements are signed and filled out ahead of time! Have a good week all! PS: any advice or comments welcome!! Share this post Link to post Share on other sites
<Steve> 82 Report post Posted November 2, 2011 Just a comment: "That Sucks!" Initial signed agreement was an option to lease option (it was the only form I had on me when I met the owner...Seems that is where you got burned. It's not Naked. Share this post Link to post Share on other sites
MichaelC 160 Report post Posted November 2, 2011 Sorry to hear that, Eric. Stuff like that burns me up and it is based solely on greed. You did what you promised, professionally and timely, and deserve to be paid for that. I want to hold out hope that the good in people still exists, but crap like this makes it difficult sometimes. Perhaps the owner has been busy and will get back to you? Here's hoping you hear from him! Share this post Link to post Share on other sites
pilot76180 51 Report post Posted November 2, 2011 I always thought an option to lease option sounded odd..like...an opportunity to possibly have an opportunity....If I'm reading this right, you were looking to get about $1k off this...so...it's a matter of how much do you want the $1k. I'd assume the owner will pay it to you, so I wouldn't cause a scene just yet. Spend the weekend trying to reach him. If you don't, then go to the next step. Do you have his new address?IF not the tenant probably does. Get the new address from the tenant, and send him a gentle notice that the transaction is complete so you need to receive your $1k. Then you get progressively tougher on the letters. I would imagine the "deal" you had worked out with the owner was verbal, so that is a tough one. The contracts would show that YOU should receive the FULL option fee, yet that wasn't the agreement. In our docs I show on the docs what the seller will receive of the option fee so we have it in writing. Share this post Link to post Share on other sites
lhenley 8 Report post Posted November 2, 2011 Eric, Bummer !!! Send a letter to the seller at the old address. On the envelope, put the magic words "Return Service Requested". The USPS will then return the letter to you, but with one of those fancy yellow stickers with his new address. Good luck. Lynn (FL) Share this post Link to post Share on other sites
efete1 0 Report post Posted November 2, 2011 Thanks guys! Yeah, lesson learned. I did the seller price sheet, etc. a la John Jackson, but that didn't help the case. We all were under a time crunch and it just got rushed in the attempt to get it done. I did speak with the owner; long story but he's going to give me some $. Like I said lesson learned! Talk soon! Eric Share this post Link to post Share on other sites
MichaelC 160 Report post Posted November 3, 2011 50% of something is better than 100% of nothing. Happy to hear you were able to salvage something for your efforts, Eric. Share this post Link to post Share on other sites
pilot76180 51 Report post Posted November 3, 2011 Seller price sheet is just the start....are the docs you are using showing what each party will receive?Are you using the acknowledgements with the space for what the seller will receive?I'm glad this is working out, but make sure your docs show what each party will receive. Share this post Link to post Share on other sites
speedingpenguin 19 Report post Posted November 3, 2011 He's an older, religious guy and he definitely didn't come across as the kind of guy who would screw me over. I don't want to upset anyone or start any religious debates (in this thread at least haha), but a mentor of mine who's been in the business a lot longer than I've been around once gave me a piece of advice:Once a prospect (seller, buyer, whoever) starts using "God" and getting all religious on you, 99% of the time they're a "f***ing crook" so beware! I haven't run in to this myself yet, but your comment about him being a religious guy who seemed nice made me think back to that advice... Might be worth keeping in mind! (This doesn't mean I think that all religious people are scumbags, but more that just because someone SEEMS like a good person and they seem/appear to be very religious which I'm guessing is the case here since you brought it up, don't let that put your guard down one bit!) Share this post Link to post Share on other sites
MichaelC 160 Report post Posted November 4, 2011 So I guess if I show up at your door wearing a priest's robe you're not going to let me babysit your kids? Is that what you're sayin?? Share this post Link to post Share on other sites
jakeduvall 5 Report post Posted November 4, 2011 So I guess if I show up at your door wearing a priest's robe you're not going to let me babysit your kids? Is that what you're sayin?? Or dressed as Michael Jackson carrying a monkey named 'Bubbles'... Share this post Link to post Share on other sites
pilot76180 51 Report post Posted November 4, 2011 He's an older, religious guy and he definitely didn't come across as the kind of guy who would screw me over. I don't want to upset anyone or start any religious debates (in this thread at least haha), but a mentor of mine who's been in the business a lot longer than I've been around once gave me a piece of advice:Once a prospect (seller, buyer, whoever) starts using "God" and getting all religious on you, 99% of the time they're a "f***ing crook" so beware! I haven't run in to this myself yet, but your comment about him being a religious guy who seemed nice made me think back to that advice... Might be worth keeping in mind! (This doesn't mean I think that all religious people are scumbags, but more that just because someone SEEMS like a good person and they seem/appear to be very religious which I'm guessing is the case here since you brought it up, don't let that put your guard down one bit!) That sure seems to be what I've found, for both sellers and buyers. Like the fish on the back of the car isn't really a fish...it's a symbol of someone with their legs crossed because someone is about to try to screw them...I had a seller call me last month and said "I saw you were a member of the Christian Chamber of Commerce so I figured you all were a Christian company so I felt comfortable with you all since I'm a Christian." so fast forward about 3 minutes into the conversation, and I told her "My rep Anthony lives very close to you, he lives over in Forest Hills." Her reply "Oh.....is he black?" "Um...yes, he is." "Oh, yeah, I figured if he lived over there was was black." nice... Share this post Link to post Share on other sites
speedingpenguin 19 Report post Posted November 4, 2011 roflmao! yep! Funny how it works like that!And MC... Fortunately for me, I don't have any kids for you to babysit! hahaha Share this post Link to post Share on other sites
Jonathan RexfordFL 8 Report post Posted November 4, 2011 It is easy for me to play quarterback after a deal is done. But here is my take. CONTROL THE MONEY!!! I had a deal awhile back where we had a home for a L/O Flip. The option fee was 7K. My deal with the seller was that I was going to give them half of the option fee. If we were able to move the property within 30 days and a 60 day occupancy. Well it took a week. I took $3500.00 Non Refundable reservation fee. The remaining $3500 was to be paid the day of occupancy. Well the seller wanted the money that I took in. I said that it had to stay in my Escrow Account until the deal was taken care of and I will transfer the money after they move out. He said...oh! that is how it works. Remember he who controls the money Rules. If all else failed, I would have given the buyer his money back. But if I had given it to seller or even half of what I had collected and something failed, I am for sure the seller would not be so forth right. Share this post Link to post Share on other sites
MichaelC 160 Report post Posted November 4, 2011 What Jon said. . .exactly! Share this post Link to post Share on other sites
