Detroit turnkey provider did not finished renovation 1 year after

Detroit turnkey provider did not finished renovation 1 year after

Cambridge, MA · Member since 2013 · 18 posts · 0 votes

Hi,

I bought a "turnkey" property in Detroit more than 16 months ago from a mid-size provider. When I bought it, the rehab was close to be finished, I left $10K in escrow that would be exchanged after the property was done and inspected. Now more than 1 year passed and they company did not finish the rehab. Apparently there are some problems with the utilities that prevents them to work on the property. 

The seller committed to pay my rent even if the property was not rented (rental warranty) but after few months paying rent he stopped doing it. Every time I talk to him he has good words and promise the property will be done in 2 weeks but then nothing happens. What else can I do? (I am out of State)

Thanks so much!

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  • Investor · Buffalo, NY · Member since 2016 · 668 posts · 209 votes
    9y

    You've waited long enough. Start documenting your conversations and either get your money back or make the provider substitute a similar, but different, property. Hopefully this doesn't turn into a legal battle but best of luck with your investment.

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    9y

    there is only one out here and that is a full recision of the deal.. you have been taken..  it simply does not take that long.. and as many in the industry will tell you rental guarantees are very dangerous they give you false sense of security and for the exact reason.. I think you closed thinking you had this rental guarantee then they stop paying it... and leave you with a home that is not rent ready here a year an a half later.. this will not get better..

    I would make a post about it on turnkey reviews so others are aware of the company and what you have gone through

  • Cambridge, MA · Member since 2013 · 18 posts · 0 votes
    9y

    Hi Jay and Michael, thanks for your advice, I will post in Turnkey Reviews. 

    Would be very expensive to hire a lawyer to at least review our agreement and contact them? Thanks!

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