Liar, Liar!!
I sure have a knack for running into some unscrupulous charters in this business. Many of you are familiar with my nightmare documented in the "Occupants from hell" thread. Well, I have yet another story to tell.
I have been in escrow on a 68 unit apartment building in TX and the closing date was set for Sept 19. In the contract, it specifically asks seller if he is aware of any material facts regarding repairs or any past or present deficiencies regarding the property. I also stressed to the broker my major concern was regarding the plumbing and I received no disclosure of any deficiency, past or present from the seller.
As it turns out, it was discovered last week,mjust before I planned to close, that the seller had indeed made some major repairs to the plumbing, including sewer and fresh water lines connecting the chiller and boiler. These repairs were done without city permits or approvals, without using licensed contractors, and consisted of the slab foundations being cut, removal of dirt, and filling it back in without compaction.
I guess I can't blame him for attempting to pull one over on me, after all, I am a stupid investor from CA with money pouring out of my ears just wanting to place it anywhere I can!! Perhaps there are stupid and foolish investors out there, but FYI Mr Seller, there is this thing called due diligence and I am not going to skip it so nice try, see you in court.
Does anybody have a 10 ft piece of rope I can borrow? I have the sudden urge to swing it from a tree in Texas. Damn I hate liars who think they can get away with it.