Deal gone bad, need advice please

Deal gone bad, need advice please

New York City, NY · Member since 2014 · 52 posts · 4 votes

Hi,

I came into contact with an Atlanta rehab/investor named Andy on BP in Feb or Mar of this year (2014). He had a house for sale in Altanta that needed some major rehab work (about $15k). The house was not in a great neighborhood but was on an owner-occupied block, near bus stop, train, and some new construction so seems to be in a neighborhood that is improving. 

I bought the house for $20,781 which included $8000 financed by the seller and a payoff of all outstanding tax liens and other liens for water bill etc on the house for about $8000.

Prior to the sale, Andy was very easy to reach - we had many phone conversations about the planned rehab and future sale of the house. We signed a JV that he'd rehab the house, take videos, keep good records, etc.

The sale closed on 3/27/14. Since that time Andy has responded only a few times to attempted communications. I would say that in the 5+ since close he has responded perhaps 3 or 4 times to my many texts and emails and phone calls (which always go to voicemail). He told me over the 5 and a half months that he's busy (obviously since as soon as I bought the house the long friendly conversations came to a screeching halt). He told me that the city inspector wants electrical re-wired to the curb and he has 2 bids to do it for $4k and $7k but the $4k electrician isn't available. Other than that I know nothing about the house other than its' address and a video of it made in perhaps Jan 2014.

Andy has the keys to the house. I asked him about insurance and he said "we have insurance" but when I asked him later who the insurance is with he hasn't responded - similar to almost every other attempt at communication with him.

I know that a property tax bill will be upcoming on the house for about $1200 in November. I also took a HELOC against my primary residence to buy the house and I'm paying interest on that to the tune of about $100 per month. So my total carrying costs are $200 per month. I'm worried about insurance on the house since at this point it's hard to trust that Andy has done anything about that even though he said he took care of it. And thinking about it now it doesn't make sense to me that he'd carry insurance on my place anyway.

I called a real estate agent in Atlanta who was familiar with the house (listed it in previously) and that agent felt that the house is in a neighborhood that is improving and in demand, and that the house could be rented out after decent rehab for about $800 - $900 per month or be sold pretty easily after rehab since there is good demand by buyers in that neighborhood.

I'm live in Denver so now that my partner on this deal, the seller Andy, has been basically unavailable for 5+ months I'm not sure how to proceed. I sent a text and email to him asking for the keys to the house but like every other attempt at communication I'm sure he'll ignore it. I do have the deed to the house.

What steps should I take? I've no idea how to get the keys to the house or any control over the property. If I'm able to actually get the keys then I could try to rehab the house and rent it using a property management company, or sell it without rehab. I feel quite lost without any eyes, ears, hands on the ground in Atlanta. It's still hard to believe that my JV partner who'd have long conversations with me before I sent money to buy the house and pay off the liens, has gone almost completely silent.

To do either a sale or a rehab-rent I need keys and to do rehab I'd need a trustworthy and reliable and honest general contractor to estimate rehab and do rehab in Atlanta I guess. I would have to pay off the $8000 to Andy in any case although without his response to any communication I'm not sure how to do that. He has never sent me a signed copy of our JV despite my requests (I signed and sent to him then silence began).

Advice?

Thanks

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Developer · Decatur, GA · Member since 2011 · 1k+ posts · 1k+ votes
12y

@John Pruner I'm happy to help in any way including giving you unsolicited advice. :-) 

My plan would be:

1.  Reassess the deal.   What are the real costs of rehab, resell, rent, clean brake from Andy, etc.?  

2.  Review your options for exiting the deal.  Does it makes sense to rehab/sell, sell, rehab/rent?

3. Break up with your partner. I'd let him know you no longer can work with him. JV is off. Rekey the house. Offer to settle the $8k under a new JV where he gets the money at exit or down the road. Most likely, another investor is missing $8k.

4.  Pick a new path and, as we like to say, get 'er done.  

You seem to have a sense of calm (no panic).  First deals are hard for this very reason.  Shake it off and get this deal to exit.  Keep trying, because now you've almost graduated from level 1 of investing (Bad Contracts and Contractors). 

Rick

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  • Investor · Hyattsville, MD · Member since 2012 · 822 posts · 441 votes
    11y
    Originally posted by @John Pruner:

    - He'll also take care of the court case by visiting the courthouse in the next week or so.


    I doubt even if he was a reliable person, he could do anything to affect your criminal court case given that he is not You or the attorney representing you. They would not likely share the details of the case that aren't the 2 people above. I wouldn't be waiting any amount of time to deal with a case that can result something showing up on my permanent record or worse, a bench warrant arrest for failure to appear in court and more sanctions.

    You are welcome to give him a week to secure the property/ send you pictures/ flowers or whatever (however I personally would not recommend this), but these are judicial proceedings and only you or your attorney can take care of these issues directly, so I would take these very seriously and consider these issues your problem alone to settle in coordination with your attorney. In case it wasn't clear, now is the time to pickup the phone and start calling local Atlanta attorneys and seeing your options.

  • New York City, NY · Member since 2014 · 52 posts · 4 votes
    11y

    Thanks Jeff. A member here has PM'ed me and his JV partner experienced a similar arrest citation. He's going to refer me to the lawyer they used to get it taken care of or to another friend of his who is a lawyer. I think I'll have a lawyer by tomorrow to work on this. I agree, the court case is very serious.

  • Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes
    11y
    Originally posted by @John Pruner:

    The JV partner has the money from the rehab loan.

    I missed this in our communications.  This is why Andy wakes up when you text a lot.  He took $18K in cash and hasn't made $18K worth of improvements.  Kind of serious.  

  • Developer · Decatur, GA · Member since 2011 · 1k+ posts · 1k+ votes
    11y

    @John Pruner  I went by your house today since it's so close to a new project of mine and as I said, happy to help.  You do have a big yellow City of Atlanta sticker for the code violation.  The 2' tall grass was an invitation to code enforcement.  They must have wandered around the back and found a half-boarded window and open basement door as I did.  Could have been much worse!

    Go to www.lawnmowingonline.com and schedule a $40 mow.  Easy enough.  After that, you can maintain the lawn for $20/mow thereafter from your computer.

    With your permission, I'll board the rest of the window over the weekend.  Then you should call the code enforcement officer.  I'll send you contact information.  Let him know your situation and apologize.  

    If your partner has some time (because he's not mowing and boarding), ask him to reconcile your bills and see how much is left to rehab.  He needs also needs to put a lock on the basement ASAP.  Good idea sending him to court, but I'd make sure you're boarded up and mowed without question and your lawyer is with him.

    The good news is you own half of a solid, durable house ... level lot.  Hardiplank siding.  Very accessible systems from the basement.  Decent neighbors.  

    Someone ran the wires for the electrical.  Plumbing seems to be intact from underneath.  No electric or gas meters. 

    Amazingly, you still have most of your windows - double pane.  Hard to tell what the rest of the condition of the property was by peering thru the windows.  

    When the house is done, it'll rent for $750 - $800.  To finish it, you'll need (great prices)....

    $1500 fixtures

    $1500 electrical

    $1500 plumbing

    $300 window

    $1200 paint

    $500 - HVAC (window units) or $3500 HVAC (go all electric here)

    $500 - Exterior maintenance

    Not sure about sheetrock, cabinets, counters, floors, trim, doors, hardware.

    You have a large oak tree looming over the house.  It's in very good shape, but I'd make sure my insurance was kept up.

    Last but not least, this is a local's neighborhood.  Stray a block from here and it could have been much worse.  

    What was your partnership structure?  Since he has not performed, I'm hoping you can get the house back.  

  • New York City, NY · Member since 2014 · 52 posts · 4 votes
    11y

    Wow Rick, thanks! I had a long phone conversation with my JV partner today about the property. I'm going to write a post trying to lay out logical courses of action (pros/cons/choices) from here. One thing he committed to is securing the house and mowing the yard and sending me pictures by Saturday.

    I love your idea about calling the code enforcement officer but I doubt it'll do anything now that a court date is set - still I'll definitely try. :)

    I am busy this evening so I'll get a structured post up in the morning laying out what I learned and hopefully get some thoughts on where to go with this house. This forum has been really great. I've had several people PM me offline with helpful advice as well. Yay BP. :)

  • Greg H.Pro Member
    Moderator
    Broker/Flipper · Austin, TX · Member since 2013 · 4k+ posts · 4k+ votes
    11y

    @Rick Baggenstoss

    @John Pruner

    Rick-  Your a good dude!!

    John- It has been well over a year !! Ditch your JV!!! Why would you ever give him the time of day ? Honestly, I just don't understand it. The extra 8+ months you have paid in interest and taxes could have more than paid for a trip to the property and more. Take the bull by the horns.

    Make Rick your best friend

    Contact a lawyer/title company and find out the issues

    Get on Kayak and get down there and walk the property

    Formulate a plan and make things happen via sale or rent

    High someone to %$$%$ your JV..........well scratch that one. Good Luck

  • New York City, NY · Member since 2014 · 52 posts · 4 votes
    11y

    I talked with my JV partner yesterday. He says he paid an electrician more than $4k to run wire from the street to the house and new wire inside the house. He says that the main delay on the project is that a sign from the crowdfund platform went into the yard and tipped someone in the neighborhood off that the house was being re-habbed. Then the person who saw the sign (here-after referred to as the burglar) broke into the house through the back door and took out the wiring.

    JV partner then paid electrician another $4k(?) to re-wire the house. He had trouble getting the electrical inspector out (didn't show up for appointments). The JV partner also purchased HVAC and water heater and while the house was waiting on the inspection the burglar again broke in and ripped out wiring and took furnace and water heater which apparently the electrical inspector wanted onsite for his inspection. Burglar also took the front door.

    Keep in mind that the JV partner I think is quite slow to actually get out to do work on the property so my guess is that nothing was happening at a fast pace, the house was probably sitting for weeks(?) with nothing going on. This was exacerbated by the missed appointments by electrical inspector for the city.

    JV partner has asked neighbors to watch the house. He said he also has paid someone to mow the lawn but the person hasn't been mowing it.

    JV partner says he will forgive the $8k 2nd mortgage against the house that he holds if I want to sell the house. However he feels that he can secure the house and get it rented then sold. He says he has crews working many houses and it's hard for them to focus on just this house, thus the slow timeline, and that the main problem is getting electrical running in the house so that he can proceed.

    He would like to continue and he will commit to this timeline with photo proof of steps achieved. He pointed out that last year I offered to draw on my HELOC to assist with rehab but he refused the money because he didn't want me farther extended into the deal. He says he is not trying to "juice" me and wants to finish this project without any further money spent by me. He says he will pay the New Jersey tax lien $546 himself. I sent him that billl yesterday. He also says as mentioned below that he will use his own money to get electrical into the house and house secured. I stressed to him that if I choose to continue he will have to stick strictly to this timeline below because to date no promise on dates has ever been kept. The crowdfunding rehab loan was supposed to have rehab finished by mid Dec 2014 and now we are approaching mid 2015.

    - by Saturday May 16 house secured (bars on back window, reinforced doors) and yard mowed with pics. He'll send mowed yard pics once a month.

    - by Friday May 22 he will try to reach someone in city government to make the court case go away by explaining to them that he's trying to rehab the house and improve the neighborhood but has had vandalism problems. He doesn't want to file a police report because then he can't get insurance on the house and he feels that once someone is living there the problem goes away.

    - by end of June he'll have electrical into the house and inspected and a security system in place along with the previously mentioned security measures all using his own money. He may have a crew member camp out at the house if necessary.

    - full rehab will be finished and a tenant in the house by mid August. He plans to put in 3 tenants sharing the house and paying rent separately. It has 2 bathrooms and he says this multiple tenant model has worked for him in other houses. The house is on a busline with a stop in front and he says he already has had people ask him to rent it.

    - he'll raise funds to cash me out of the house and pay off crowdfund loan by end of October....buying it from me (price tbd).

    He asks me to continue in the deal. So here are my choices. I can see 3:

    A) Continue in the deal hoping to escape without loss. My risk is another year of property taxes $363, sanitary $400, mowing $250. If the JV partner fails on any of the timeline mentioned above I would immediately choose another option below (B or C). JV partner urges me to choose this.

    B) Sell the house. I am getting mixed reports about what it's worth. One BP member sent me a RealAVM estimated value of $63k-$97k. That seems unrealistic and I guess is based on square footage and nearby comps run by a software app. A realtor gave me a report months ago that she thinks she can get a good price for it. I think she said $50k but I don't recall exactly. She felt the area is improving/improved a lot and good for rental or sale. My thinking is that it might go for more like $20k or $30k. That would be enough to pay off the crowfund rehab loan ($18k), and cover closing costs and realtor fee but I'd lose the $21k invested. Before taking an offer that low on the house I'd of course see whether the realtor can list and sell it. Once it's secured and mowed it might have a chance of selling to an investor or do-it-yourselfer.

    C)Try to drop my JV partner and partner with another rehabber. I'm not sure whether I can find anyone interested but I think the house has decent rent potential once rehabbed, and might sell for a decent price also. I'm not sure whether I can find someone interested in doing this but it seems like a decent option. My downside would be that I'd have to pay off the existing $18k loan somehow by October and pay for rehab with the new partner - maybe $10k(?) based on Rick's post above. That would be tough to swing but if I max out my HELOC and borrow some money from my mom I might be able to do it.

    I know that everyone has suggested I immediately drop my JV partner but that option seems to have the biggest downside. I'd almost certainly lose my entire investment and perhaps more. Option A (hang in there unless JV partner misses a date) has pretty low downside and some upside. Option C has decent upside but going into the house that much more is a big risk and commitment. The JV partner agreeing to a timeline, to dropping the $8k lien if I sell, to secure the house and mow by Saturday make me think there is a chance he'll actually stick to a timeline and get this done.

    He says that he is personally liable for the crowdfunding loan. Our JV says that we will take a crowdfunding loan to do the rehab and allow it to be 1st lien position on the property. I asked the crowdfunding platform for the loan docs and they say that only my JV partner can release those, they are not allowed to so I don't have the actual loan docs. Perhaps the loan is not even in 1st lien position on the house. The crowdfund platform hasn't responded to my inquiry about how they are in 1st position but my JV partner is personally liable when I'm the house owner. I signed a loan application and terms of service doc last year but no actual loan docs that I remember.

    I'm just trying to think about it logically. The legal case, I plan to wait until end of next week to see whether JV partner can make it go away and I'll call the local ordinance officer to see whether I can get them to drop the charge (I doubt it). If this isn't resolved by end of next week I'll retain an attorney. David Begley was kind enough to recommend an attorney to me. I don't want to send the retainer fee until end of next week though because I'd like to see if this can be worked out without paying for a lawyer....but I suspect I'll be spending some money on a lawyer in the end. I do take the legal process very seriously. I have perfect credit and I don't want to ruin that.

  • Investor · Decatur, TX · Member since 2015 · 52 posts · 20 votes
    11y
    Oh man. I am so sorry to hear that. That is the kind of thing everyone dreads I think. Personally I'd get my butt to Atlanta....
  • Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
    11y
    Originally posted by @John Pruner:

    ... He said he also has paid someone to mow the lawn but the person hasn't been mowing it.

    ... He says he has crews working many houses and it's hard for them to focus on just this house, thus the slow timeline, and that the main problem is getting electrical running in the house so that he can proceed.

    ... He doesn't want to file a police report because then he can't get insurance on the house and he feels that once someone is living there the problem goes away.

    - full rehab will be finished and a tenant in the house by mid August. He plans to put in 3 tenants sharing the house and paying rent separately. It has 2 bathrooms and he says this multiple tenant model has worked for him in other houses. The house is on a busline with a stop in front and he says he already has had people ask him to rent it.

    ...

    He asks me to continue in the deal. ...

    Paying somebody to mow the lawn but who has not mowed it! Really? Payment is made for performing such work, not for somebody promising to do the mowing. 

    It's not hard to focus on a single house when you make the decision that focusing on that single house MUST be done. An excuse to make it seem that your house isn't being mismanaged when that is the case. 

    Insurance can be obtained, but it will probably be costly since a builders risk or a vacant house policy must be used. Once somebody is living there, you will definitely want insurance, but it sounds like no insurance is being proposed. 

    3 months to finish what hasn't been accomplished in over a year?!? It could be done, but seems not likely to happen. 3 tenants sharing a house and paying rent separately (in other words, 3 separate leases), is turning this into a rooming house; that might be good, but it could require more management effort. 

    The last sentence in the quoted excerpt is how you can tell you are likely dealing with a  "confidence man" (AKA con man). Tell you what you want to hear, try to get you to believe him and to put trust in him ...

  • Investor · Denver, CO · Member since 2014 · 71 posts · 44 votes
    11y

    John:

    My advice would be to get out of this now.  Do NOT continue to trust this guy to do anything.  His track record says it all.  Is it possible that thieves stole $4K of wiring twice and your HVAC and your water heater?  Sure.  MAYBE all this is just a perfect storm of unfortunate circumstances.  But I doubt it.  Even if all of what he has told you is true, you need to proceed under the assumption this guy is stealing from you.  You aren't there.  You can't verify anything.  Get out now.

  • Greg H.Pro Member
    Moderator
    Broker/Flipper · Austin, TX · Member since 2013 · 4k+ posts · 4k+ votes
    11y

    @John Pruner

    I assume he has provided you will police reports and receipts ?  Not !

    John,  you are being taken on a ride. I have been doing this for 25 years since I was in college.  I have been ripped off by a contractor or two but no quite to this extent 

    Take the bull by the horns and move on from this guy so we don't get an update from you in a few months that nothing has been done and you are more $$$ in the hole

  • Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes
    11y

    @John Pruner  

    This has been one of the most discouraging stories to me about people who found each other on BP.  Andy used this site to find someone like you, someone with funds, someone (by your own definition) pretty mellow and trusting. Someone who won't come and visit the property. :) I believe it happens more often than people think.  Plenty of thieves lurking here, just like elsewhere on the internet. Most people don't post when deals go really bad or get ripped off by people they meet here.  Too much shame.  Kudos to you for waking up and sharing so others can learn.

    IMO you shouldn't even consider any more dealings with Andy.  If you look at the history of that property, he's been an owner since 2009.  5 years is a long time to not fully rehab a property.  And a long to time collect money from partners and lenders while not doing the rehab. You can look at the other stuff he is involved with. It screams of someone who schemes.  Maybe his intentions are good.  Maybe he believes he is being honorable with you on this deal. Maybe he is just a really bad contractor/rehabber.  Really bad. (Be sure to ask for those receipts for the $4K x 2 electrician bills and that stolen HVAC.) Regardless, you should walk from any further dealings.  He should and will release his $8K lien because he loses nothing. He knows there needs to be enough proceeds from the sale to pay the $18K loan and other costs to get it sold.  BTW, pretty sure you both signed personal guarantees on that loan.  Seems unlikely the crowd funding lender would have released funds to a partner without approval from the owner of the property. 

    You could stay in the deal (without Andy), but you need really good help on the ground to get it rehabbed and rented.  It would mean paying off the $18K loan, getting the citations and bills resolved, and at least $7500 in additional rehab. That puts you into the property at more than double what you are in now.  Is an $800 rent worth it to you?

  • Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes
    11y
    Originally posted by @Steve Babiak:

    The last sentence in the quoted excerpt is how you can tell you are likely dealing with a  "confidence man" (AKA con man). Tell you what you want to hear, try to get you to believe him and to put trust in him ...

    I've had to rewrite my responses on this thread several times in order to try to take out "con man", "game man" and "crook".  I just don't get this dude's business model.  He's not a good con, otherwise he'd be fully cashed out of this deal......and not on the line for $18K with a personal guaranty to the crowd funding lender.  He's not a good contractor with experience in the area, otherwise he wouldn't have had multiple thefts. I'm thinking he must have a silver tongue.

  • New York City, NY · Member since 2014 · 52 posts · 4 votes
    11y

    Honestly I don't believe he's conning. He's not really getting much out of this. I think he's just slow, loses focus, doesn't live up to commitments, distracted, unreliable. I honestly think he's trying to be a good guy on this one and I think he legitimately intends to try to finish this deal and get me out whole or better. The question in my mind is whether he can live up to his commitments. It's like a drug user. They might tell you they won't use their drug but the first time they have a moment of weakness off they go. It's the same with my JV partner. I think yesterday he had the best intentions but tomorrow is a different story and there is always a distraction in his life and business. That's why I asked him to agree to a specific timeline - something I haven't had him commit to before. If I decide to hang in the deal and he misses a timeline then both of us clearly know that he's failed and I will exit the deal. My first goal is to get house secured and yard mowed which my JV partner has committed to doing by EOD Saturday. If that happens then we move to next event in timeline. If at any time he fails on timeline then my choice to leave the JV is clear. My downside on options B and C above is huge. Even with C as Kristine pointed out I'd have to somehow scrounge up a lot more cash to sink into the deal. My downside with option A.... hanging in the deal another few days or a couple weeks to see whether he lives up to his commitments is actually very small I think provided the yard is mowed and house is secured. The crowdfunder won't allow any more draws on the loan at this point.

  • Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes
    11y

    Giving that guy 3 full days to mow and board, after what you've been through the last 8 months, and after the advice and help you've been given here? I'm outta here.  

  • Investor · Portland, OR · Member since 2014 · 354 posts · 149 votes
    11y
    You mention a drug user who keeps going back. YOU are that user. For a year, you have kept going back on the hope of an extended high. YOU need to cut yourself off from the drug and start your recovery. Whether or not Andy has good intentions is not the point. As you just said, he is unreliable, slow, does not respond, and is incapable of holding up his end of the deal thus far. Get out. For everyone else who doesn't want to spend a year on a deal with a partner who is unreliable, please help the rest of us out and tell us who this BP'er is so we can avoid him. Good guy or not, he is not someone any of us would like to do business with. Again, good guy or not, he is a partner who has not delivered, has not communicated, and has lost you a lot of money. Cut the cord. Stop running back to your drug. GET OUT! At this point, Andy is no longer to blame. 8 months ago you received great advice to remove yourself from this partnership. From that point on, you have failed yourself, failed your investment, and you need to get away. Sorry for the bluntness, but you're the only one who can't see that good guy or not, he is not someone who should be relied on for anything.
  • New York City, NY · Member since 2014 · 52 posts · 4 votes
    11y

    Yes, I was waiting for someone to say this. I don't think I'm an addict here. I'm trying to think about this logically. Did you read carefully my post this morning laying out logically my upside and downside with each of the 3 options? 

    This  "get out you're crazy" response seems to ignore the logical analysis that I tried to approach in that post. I'm trying to figure out a logical course of action from today, not from Sep/Oct 2014. 

    By the way, I understand you are trying to help and I thank you for that. :) 

    I'm just asking you to logically approach the situation with me in terms of upside, downside, risk, further investment, pros, cons.

    What exactly do I lose in option A over the next few weeks? What do I lose with option B (sell now)? What do I risk with option C (find another rehabber)? Is option C even possible? Do I want to sink another $25k into this deal? I'm not being emotional here, just logical. 

    About the advice months ago, yes I should have exited the deal at that point. I fell for my JV partner's renewed enthusiasm about the project at that point after months of inactivity. Perhaps that was my "fool me twice" moment.

    But at this point when I logically weigh risk/reward I don't see a high risk to waiting another few weeks to see whether action occurs. My liabilities aren't increasing other than a fairly low carrying cost of about $70 per month. If I exit immediately and sell it for $25k then I immediately take a $21k loss. Why is this logical?

  • New York City, NY · Member since 2014 · 52 posts · 4 votes
    11y

    Btw, I think Kristine's advice is good. I think I should get it on the market to see what I can get for it. If someone offers enough then I'll just default to option (B) which is to get it sold. I don't know yet what it's worth. Putting on the market will define that.

  • New York City, NY · Member since 2014 · 52 posts · 4 votes
    11y

    I've PM'ed Rick to ask for a reliable local agent. If anyone knows an agent who might be good for this kind of listing then I'd love to have a name/email/phone so I can contact them. Ty.

  • New York City, NY · Member since 2014 · 52 posts · 4 votes
    11y

    JV partner just updated me that he's willing to have me quitclaim but leave me in the JV and restructure the JV to pay back my $21k investment and to share in any profit that comes from the property when rented or sold. This would free me of liability. I would have to get a lawyer to structure this appropriately but I like the basic idea of still being able to perhaps get my $21k back and more while being done with active involvement or ownership of the property.

  • Investor · Portland, OR · Member since 2014 · 354 posts · 149 votes
    11y
    Read Out Loud: FOOL ME ONCE (got me to partner with him) shame on you Andy. FOOL ME TWICE (got me to keep working with him for 8 months while he didn't perform, while I got served court papers) shame on me. FOOL ME THRICE (if I quitclaim and believe another promise out of Andy's mouth) and I should quit investing and stick with a 401k as my over-trusting personality and personal inaction will lead to poor performing investments and a loss of all my money. (He is only actively talking to you again like he did in the beginning, because it's the end of his game. Get the house back for nothing. His smooth talking got you on the hook, and now that he put you in one hell of a mess, without good options, he's positioning himself as your Savior with his smooth tongue to finish what he started. You quitclaim and he moves into a house he got for FREE!)
  • New York City, NY · Member since 2014 · 52 posts · 4 votes
    11y

    Sure, makes sense. I'm not going to quitclaim without a lien on the property.

  • New York City, NY · Member since 2014 · 52 posts · 4 votes
    11y

    Oh, and I want to see what a realtor can sell it for as well first. I'm not going to dive into a quitclaim. I'll get a lawyer and structure it so I have a lien for my investment. But first I'll see what it will bring on the market.

  • Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
    11y
    Originally posted by @Michael Moikeha:

    ...

    For everyone else who doesn't want to spend a year on a deal with a partner who is unreliable, please help the rest of us out and tell us who this BP'er is so we can avoid him. Good guy or not, he is not someone any of us would like to do business with.

    ...

    I am guessing this is the person:

    http://www.biggerpockets.com/users/myrentedroom

  • Developer · Decatur, GA · Member since 2011 · 1k+ posts · 1k+ votes
    11y

    @John Pruner  It's already listed.  Check zillow.  Sorry I can't recommend a realtor jump in at this juncture.  You have to demonstrate you're willing to do some of the right things on your side.  I can give my time away but not my partners'. 

    Rooming houses?  Check your zoning.  Give Atlanta zoning a call and ask if Andy can legally do this.

    http://gis.atlantaga.gov/gishome/index.php?option=...

    Andy's too busy ...

    https://www.groundfloor.us/investments/2498-lester...

    Did he really have a problem with the inspector?  Never permitted.

    https://aca.accela.com/atlanta_ga/Cap/CapHome.aspx...

    You can see he hasn't permitted in a while?  Figure that out and you'll probably have the upper hand.  

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