Need help getting out of raw deal with invest group (lawyers plz)

16 Replies

I have a entered into into a business agreement with a real estate wholesaler/rehabber/flipper well known in the Philadelphia area. His company was supposed to locate a property for me in Cleveland, rehab it, locate tenants and manage the property for me. I entered into this agreement 11-2018. I still have no deed to the property and have been making payments since May of this year. 3 weeks ago my contact from his office reached out and asked me if I wanted to sell. I absolutely agrees to that. I’ve since been waiting for them to reach out about buying back the property.

I just want to be done with this guy because I’m fast approaching a year and have gotten nowhere except out of a significant amount of money. I’m considering reaching out to a real estate attorney. Does anyone have any suggestions?

@Courtney A Hall - any reason you didn't select a Cleveland based firm for this? 

This is going to sound harsh, however you need to hear it: if you're not getting anything that you want, apparently don't have proof that you own the place yet you're making payments, who is at fault?

@Tchaka Owen

Thanks for your response. However, my post was not aimed at fault finding, it was geared toward finding a lawyer/legal advice. So are you offering help or just making comments?

Please refrain from posting if your comments aren’t geared toward a solution. Thanks

I am no expert in this but the first thing I would do is go to public records and find out if your name has been recorded as the owner of the property.  Just because you don't have the deed in hand does not necessarily mean you do not own the property.  Did you work with a title company at all?

Once you are sure of the facts then stop waiting for them to reach out to you and aggressively start reaching out to them.  

@Courtney A Hall

What's the business agreement say about the choice of law/choice of forum? Typically the agreement would say that the laws of a particular state apply to the underlying agreement. It would also typically say you can only bring a lawsuit in a certain county within a state (or say that the parties must arbitrate). 

In any event, I would engage counsel and have the attorney look at all the relevant documents/facts. 

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.

Call your local bar association to see if they have a lawyer-referral service. Ask for a referral to a few real estate lawyers. "local" will mean the location where the contract was formed. CAll a few real estate lawyers and see who seems trustworthy and you click with. Alternately, look up real estate lawyers on yelp and read their reviews.
Do it right away. This sounds problematic.

Do a search in the local county records to confirm your entity owns the property. If not, then you should definitely hire an attorney and perhaps contact the local authorities in Philadelphia because it sounds like fraud. Good luck. 

Originally posted by @Courtney A Hall :

@Tchaka Owen

Thanks for your response. However, my post was not aimed at fault finding, it was geared toward finding a lawyer/legal advice. So are you offering help or just making comments?

Please refrain from posting if your comments aren’t geared toward a solution. Thanks


Sorry but you don't own BP. This is a forum for learning, teaching and progressing. We've all had ups and downs and we grow from the experiences. If the truth hurts, that's your problem. 


 

@Tchaka Owen “you don’t Own Bigger Pockets” bro you sound like a 5 year old. Every other person who has commented has had something of value to add to the conversation EXCEPT you. Once again I’ll ask you to keep your comments off my post as clearly you have nothing to offer. I don’t have to own Bigger Pockets to make that request. 

@Brant Richardson I have a purchase agreement for the property, but have been waiting to go to closing. So when I got the call on July 19th that they wanted to buy the property back I was super excited because I saw an opportunity for this to finally be over. I checked public record in Cleveland and G.Parker Unlimited is still listed as the owner.

Originally posted by @Bradford Behrins :

Do a search in the local county records to confirm your entity owns the property. If not, then you should definitely hire an attorney and perhaps contact the local authorities in Philadelphia because it sounds like fraud. Good luck. 

Great advice - thanks

 

Originally posted by @Jenifer Levini :
Call your local bar association to see if they have a lawyer-referral service. Ask for a referral to a few real estate lawyers. "local" will mean the location where the contract was formed. CAll a few real estate lawyers and see who seems trustworthy and you click with. Alternately, look up real estate lawyers on yelp and read their reviews.
Do it right away. This sounds problematic.

I will be contacting a lawyer right away. Thanks for the advice.



 

Originally posted by @Chris K. :

@Courtney A Hall

What's the business agreement say about the choice of law/choice of forum? Typically the agreement would say that the laws of a particular state apply to the underlying agreement. It would also typically say you can only bring a lawsuit in a certain county within a state (or say that the parties must arbitrate). 

In any event, I would engage counsel and have the attorney look at all the relevant documents/facts. 

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.

Thanks for the advice!

 

Yes I would read through the documents as best you can and then contact one or more counsel and see what they recommend. Sometimes (not always) expert opinion is money well spent. 

@Courtney A Hall

Before you engage an attorney review the contract to make sure that it has a “prevailing party” provision. If it doesn’t, each party will be responsible to pay for their respective legal and court costs regardless of who wins.

If it does, if you sue and win you will be entitled to be reimbursed for the costs you incurred in bringing and prevailing as to you claims.

Be aware that being awarded a judgment is very different than being able to collect it.

Make sure before you get the legal ball rolling along with its associated costs that you find out if the entity you sue has assets to collect against otherwise you can find yourself winning the battle and losing the war.