Jump to content
The forums have been archived and are now read only. Years of great info saved for your reading pleasure. Thank you! Visit us on Facebook: https://www.facebook.com/NakedInvestor/ ×
The Naked Investor Forums
Learning and Burning

Seller accusing me of wrongdoings

Recommended Posts

Oh, $#!% Son,

 

Ok, Got this Sandwich deal in 11/11. Theres two tax lots that are attached. One with two mobiles on it a doublewide and a singlewide and the other with a 1/1 stick built on it. This was a refferal deal from one old lady who lost her husband to another to me. I got a tenant buyer in the doublewide, (after a renter that caused me grief) who will get his own loan in a year then take on singlewide rental.

I have payed accordingly and have done all i said i would do to date. Lease with Option to Buy Contract.

I am a lanlord to the stick biult till i find a tenant/buyer. Tenant of Doublewide wants the stick built one also. No contract for that yet.

 

Got an email from Son inlaw today telling me my services are no longer needed and that i was being reported to the authorities for taking monies on properties that arent mine and for selling one lot only. He says i no longer have a stake in the property or permission to deal with the property anymore. Next time i hear from them it will be in legal form.

Iv got $5,000 option $ plus rents from tenant/buyer wihich went to pay owner. Really have not made much money till tenant gets a loan. All is good except for this crap coming from owner/owners son in law.

 

W.T.H?

Can a seller terminate our contract without reason?

Property is in Oregon and im hoping to talk with an attorney.

Where do i stand to tell him to buy me out if he wants me out...

 

More burning then learning right now, HELP.

Share this post


Link to post
Share on other sites

First off...who are the "authorities"?

Not sure if he's just trying to protect his mother in law or what...but if you have your contracts in place, then he'll have a bigger fight than you.

I'd just see what his next move is and keep on moving forward.

I wonder if he's contacted the tenants and told them to start sending payments to him or something.

IF he gets in the middle and botches things up, I wouldn't get too upset if you're not making much money at all anyway.

May not be worth the time andheadache to jack with.

Share this post


Link to post
Share on other sites

Can a seller terminate our contract without reason?

He can try, but no. Of course the devil is in the details of the deal. I'm forced to utter words that I hate to utter: contact an attorney for professional, knowledgeable legal advice.

Share this post


Link to post
Share on other sites

Ok, So details are as such.

I got both lots for $200K $1200 per mo. for 4 years. i handle all utilities. Water, sewer, taxes and ins. Property pulls in $1,900 after pmt to owner and utilities i net $300. per month.

Got a tenant buyer in the doublewide,singlewide has same renter that owner had in there. Tenant buyer will take on singlewide when he gets his loan. Leased with option to buy to him for $180,000 the one lot.

Stick built has same renter from owner and have not got a tenant/ buyer for thet one yet but current renter might want it come tax time. And tenant of lot one has an interest in it also. I said i would sell it for $50,000 on a lease with option to buy.

 

This is part of the email i got yesterday after owner showed up at property un announced.

Your services are no longer needed and information concerning the unlawful collection of funds and the attempt to sell property without legal notice or trust are being filed with the County District Attorney's office. Information concerning the crime is also being sent to the Attorney General, State of Oregon. Your attempt to sell a section of property and your collection of $10,000.00 as down payment for mobile home was illegal and unlawful.demands these funds to be returned to the person or persons it was collected from and your position of authority to sell any property owned by owner and forever dismissed. Any security deposits on any property taken by you is now demanded by owner next correspondence will be from legal counsel obtained or government counsel to determine the court times. Please make no communication

 

This is actually the whole email minus owners name. I didnt get $10 k tenant buyer paid 5k in two payments which payed to clean property from the renter i put in there before finding a tenent buyer. (wont do that again) All with out missing a payment to owner.

My goal is to profit to the tune of $10 to $15k after both lots were sold and new loans were obtained.

I dont want to have to give it up as i have been working this one for a year now. got rents from two of the renters for Dec. Now what do i do?

Hoping for sound advice from here, and hoping to talk with a lawyer soon......

Share this post


Link to post
Share on other sites

It's a little difficult to understand what you wrote, I hope your verbal communication skills are much better. But obviously SOMEWHERE in the deal you and the seller are NOT on the same page. It's a wonder, since you've been working on this for a year already.

 

Do you have a contract in place? Is the contract solid? If the contract has explained all the terms then I don't think you have anything to worry about. And Michael can probably confirm this, my understanding is that everything in real estate must be in writing. (learned my own lesson there too) If the agreement is solid, then it is the Son in Law's ignorance at play here. You CAN collect payment from property you don't own.

 

It is very strange that the seller suddenly take such a dramatic move against you.

Share this post


Link to post
Share on other sites

Not sure what her bitch is really. Originally i met her with my refferal her friend. Explianed what i do. Then i met with her and her only child a grown women, and explained what i do. Then i met her with her daughter and the son inlaw explained what i do and how it works. Thats when she singed. Then i met with all of them when she moved out and gave me the keys. All this over about a 3 month period.

 

Now i have rents from all tenants for Dec. So what do i do? I want to pay bills as i have agreed to and have been doing.

But not if im gonna get the shaft. Dont want to leave tenants in a situation either...?????

 

I have the Pre Paid Legal plan and have sent them the contract That clearly states the deal is for both properties. And line #15 in the Lease with option to purchase Contract states the jist of what i can do. Contract signed by owner with adult children present.

They are to get back with me In 3 or four days. Not so sure of these guys. All lawyers for that matter. The one i talked to yesterday said i couldnt sell a property that is not mine. Asked if he was familiar with lease options, of couse he got snooty...

 

Still not sure what owners real complaint is. There has been no breach of contract on my end. Shes in her 70's now and alone in an independant living facility. Im guessing shes confused and has nothing in her life except this property. And something to get attention ...???? What to do?

Share this post


Link to post
Share on other sites

I do want to stay in the deal. I have a years worth of managing, cleaning, tenants in tenants out etc. I have a four year deal with the owner.

If i do give up, what will happen to the tenant/ buyer? Is owner obligated to his contract?

She has received over $14,000 in this one years time. And now get the property back to make even more $ She's made all the money. I was banking on the back end to make my money...

Looking to hear from lawyer.

Has no one here had this happen before? Stressing out....

Share this post


Link to post
Share on other sites

Hi L&B, I've been told that 1) there shouldn't be any deal that you can't walk away from, and 2) always get paid upfront.

 

This is a terrible deal no matter how you look at it, but let's look at the reward vs risk of staying in the deal. What do you project will be your cost if you're going to battle it out with the owner? And what is the likelihood that the deal will go as planned even if you win in court? And then consider, how much will you get paid if you stick it out?

 

if your cost is going to be $500, and then the pay day (NOT IN 4 YEARS) is $15,000, just for example, then probably worth staying. If you are waiting to get paid 10k in 4 STINKING YEARS,, then forget about it.

Share this post


Link to post
Share on other sites

My main goal to stay in the deal is the Money no lie. But, also on principle. As all of us here we do a service for these people and so should get paid..... And i want her to adhere to mine and my tenant buyers deal. Or hes ass'd out.. Also, she has threatened to turn me into the D.A. And that would cause me problems with my rep and future deals... I'v done nothing against our deal....

I heard from Lawyer today and explained the facts.

She said the old lady is rediculous and that she would review my contract and get back to me on Tuesday.

I got all the rents and am advised to make payments as i have been.

Lawyer, sounded Like she could have my back. She said as long as iv payed and adhered to my end. Old lady is out of line.

This took a little of the stress away today, but now i hurry up and wait......

 

Still looking for more input from you groud pounders.. Thanks

Share this post


Link to post
Share on other sites

Interesting story, Steve, and thanks for sharing it.

Learning and Burning, you definitely are earning your wings on this one. There isn't an investor on the planet that doesn't have a deal from hell story, usually brought on by greed. Yours seems to fit the bill.

This is a bit complex, and you've done the right thing by contacting an attorney who understands what you're doing. That's key. Not all attorneys are brilliant, although they would argue otherwise. :glare:

Share this post


Link to post
Share on other sites

So, I got a call from the old lady. says, she doesnt like that i live in California and the property is in Oregon. She has known iv lived here from the start. I didnt live there when i got the deal. Also, she sent me an email saying i should be expecting a warrent for my arrest. Wont tell me why other then shes not happy that im not in the area of the property.?????? Then i get a call from her son inlaw, with her in the background telling me i am no longer needed and am not allowed on the property. That our next contact will be in legal form...... Anxiously waiting to hear from my lawyer Tuesday.

Truly, I am sick of the crap that this old lady brings. For the most part i have gone above and beyond on this one for her. And am ready to tell her to take her granny panties out of her @$$.. Take her sour crabby old bitchy two faced face and shove this property where the sun dont shine.... Ahhh a little venting. Feel better. :)

Now, I would be willing to walk away from the deal, providing the deal with my tenant/ buyer would stay in effect. Is that feasible? Can i get her to adhere to such? If so how? So, will wait to hear from attorney... Now even if i do stay in the deal what will our relationship be like? Really dont want to know...

W&D, reading your headache scenario does help me keep cool. And believe its gonna work out somehow. Thanks for sharing.

 

Yahh M.C. GREED. Feeling more and more like thats the root of this evil...

Share this post


Link to post
Share on other sites

L&B, I suspect it's the son-in-law calling the shots here, and not the woman. He's probably convinced her he's looking out for her and protecting her from the wolves at the door. Apparently you are the alpha male of that pack. Ha! The reality is the son-in-law is waiting for grandma to take a dirt nap so he can cash in on her will. . .which he probably drafted. As I said, when in doubt, follow the money. Greed.

At this point they are attempting to scare you off. Warrant for your arrest? Please! That's laughable. Do nothing until you hear back from the attorney you contacted last week and then you can formulate a strategy. If it were me I would probably take the path of lease resistance and back off. . .but at a price. Meaning I wonder if you fired back with a threat of your own, mumbling about things like your attorney said they are in breach of contract, etc, that you just might get them to pay you to cancel your legally binding agreement? Just a thought.

Share this post


Link to post
Share on other sites

I heard from Lawyer. She says i have a contract that favors me, and the seller has no right to cancel. (F'n Awsome)

And suggest i make contact to figure out where seller is confused about our agreement. And remind her that i have a three years left on my four year lease.

So, Of course i will call her tomorrow.

And tonight i get a call from the renter in the single house. Tells me seller told him to pay rent to my tenant/buyer in the big house. W.T.F.?? Was my first thought.

 

Well, to try and hang on to income and backend paycheck. And what is right. I couldnt back out of a lease without penalty. Could I? Or do i make sure seller and my tenant buyer are happy and walk away. On to the next one? Which i got a signing today by the way. will share on another post. Yahoo

 

What to do Naked peaple? Will learn more tomorrow and sleep on this $#@! tonight.....

Share this post


Link to post
Share on other sites

I heard from Lawyer. She says i have a contract that favors me, and the seller has no right to cancel. (F'n Awsome)

No surpises there.

The attorney and Steve are right. Call the homeowner you did the deal with, (the woman, not the idiot son-in-law), and casually mention your conversation with your attorney and her opinion on what is happening. I'd offer them two options.

1) I'd tell the owner that even though we have a legally binding agreement I would be willing to sign a release and remove myself, but for a fee to cover my time and expenses. Have a figure in mind and throw it out at her. If they agree or are at least willing to negotiate, then you'll strike a deal and be wiser for the experience.

2) If they insist on playing hardball, then it comes down to whether or not you want to fight back. If it were me I would at least bluff and see if they blink. Remind them that their legal fees alone will cost more than what you are asking to release them from their legally binding agreement with you, and the time frame to settle will be months down the road. In the meantime, the agreement stands as is.

Share this post


Link to post
Share on other sites

×
×
  • Create New...