re: bad investments

Real Estate Agent · Santa Clarita · Member since 2015 · 57 posts · 11 votes

Hi Friends,

My husband and I have been working with a company to invest out of state in Indy. The process has been horrible and arduous. The property has a great cash flow and a good cap rate, but the company keeps changing information on us. First, their agent says the owner will put in sump pumps to deal with the large puddle in the basement. Later the owner says no, she put in drains. Then they say they will fix windows and then decide that no, they will not fix windows. Finally they say they will take care of any mold issues and later come back and say they will "help remediate" mold issues if they are found. We don't know if there are mold issues because even after this now 45 day escrow, their Contractor somehow forget to turn in the sample. I keep telling my husband that this is a nightmare property, but he likes the cap and cash flow. I am looking for feedback from some experienced investors. I have bought two houses I lived in (and didn't have these issues), but this is our first investment property. Would you invest in this? With the constantly changing guarantees and possible mold? Thank you, Laurence

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J ScottPro Member

Moderator

Investor · Sarasota, FL · Member since 2008 · 18k+ posts · 17k+ votes

10y

Originally posted by @Ryan Mullin:

You are entirely to "nit picky" to be investing in real estate. From what I can gather your husband "gets it" and you are nervous and scared.

....

Our contractor failed to send the test in... guess what he's busy doing actual contracting. Welcome to dealing with contractors. Guess what... we lost money too. We lost time. Still losing time as I type this.

I'm not jumping into the he-said/she-said and taking sides here (I don't know any of the parties), but after reading this post, I'll throw in an unsolicited opinion and a piece of business advice...

As a business owner, this is the WRONG way to be dealing with customer issues. Badmouthing a potential customer -- who's biggest mistake is likely just being new, naive and paranoid -- in a public forum is not good business practice. Especially given that many of your customers will be new, naive and paranoid.

As for your second statement above, it sounds like you agreed to get a mold test done and your contractor dropped the ball. Sorry, but this isn't something you just chalk up to, "Welcome to dealing with contractors." You told your customer you would do something; then you didn't do it.

I've purchased hundreds of houses (i.e., I'm not new, naive or paranoid), but if I were told by a representative of mine that they would handle something for me, didn't handle it, and then just blamed it on a bad contractor, I'd be pretty pissed too.

The fact that you can blow off the fact that you didn't follow-through on the mold test you supposedly agreed to makes me wonder if you weren't just as nonchalant about agreements you made with the sump pump and the windows. You may think these things are minor, but it's understandable that a customer wouldn't find them to be minor.

This all goes right to the heart of your role as a turnkey seller -- you need to be TRUSTWORTHY. And your comment above about the mold test doesn't instill much trust from me.

Again, I don't know you (or the OP) and it sounds like others here have had good experiences with your business, so maybe you're just having a bad day. But, my suggestion is that, in the future, when you have to "fire a customer," you do it without the name calling and perhaps an apology for when your contractors may have dropped the ball. If it weren't for your post above, I would have walked away from this thread with a relatively positive opinion of your company (based on others' comments and your other posts); but after this, I'm walking away thinking just the opposite.

My opinion probably doesn't matter to you, but just think of all your potential future customers who may read this thread and walk away with the same impression I have...

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Laurence Walsh-Hodson
OP
Real Estate Agent · Santa Clarita · Member since 2015 · 57 posts · 11 votes
10y
Originally posted by @Ryan Mullin:

Originally posted by @Laurence Walsh-Hodson:
Originally posted by @Jay Hinrichs:

@Ryan Mullin the Joys of BP inexperienced buyers with their version of events then the soap box starts.
Its why I posted that ( the way she posted this there is only one conclusion to be made)
Keep up the good work...
And as we all know that in 95% of the cases the Mrs. makes the yes no decision so in this case the Mrs does not want to go so this one will not go !!! I learned that within 6 months of selling RE.. be respectful to hubby but listen to wife LOL
Hi Jay, Yes it was the Mrs that killed the deal. Ashley. Not I. I was trying to work it through with FS. Ashley pulled the plug when we asked them to take responsibility to pay the lender to keep the interest rate when we needed to extend escrow because their contractor never turned in the mold report. Oh and we also asked them to stand by their contract to fix the mold issue if there was one and not just "help" us with it. Mrs. Laurence
We pulled the plug when you made this post.
Honestly, I wanted some feedback from more experienced buyers. None of them said "Oh you are being too picky." How am I supposed to know that it's "nit picky" to ask the Turnkey company to stand up to their word? The contract says "Seller will pay for mold remediation" then JR's email says FS will "help" with mold remediation. I don't get it. Which is it? You honestly think it's too picky to question that and get assurances that you will take care of it? There could be a big financial obligation there. It wasn't my intention to air our dirty laundry which is why I didn't use your company's name. I just wanted to hear if other people have had experiences like ours and it's worked out.
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Laurence Walsh-Hodson
OP
Real Estate Agent · Santa Clarita · Member since 2015 · 57 posts · 11 votes
10y
Originally posted by @Account Closed:

I have learned that trust in the people on the ground far outweighs any proforma. These homes can swing from highly profitable to disasters in a heartbeat. The only thing keeping you on the profitable side is an excellent team on the ground. And I dont think it matters whether its the 40K rental @Jay Hinrichs refers to or the $125K in the nice neighborhood. I know people who lost their shirts on A type properties just as much as the lower end stuff. The only consistent thing I hear is that a good PM can make an average property perform great and a poor PM can make a great property a loss maker. This business has a large people component to it. They are the tenants and your manager. The manager chooses the tenants and deals with them. You are 2000 miles away with no control. If the company you are buying from will also manage, then run. If not, you can have them cut some more off the price to make up for the headache. But be sure you get everything they promise to do inspected by YOUR inspector. Pics are not enough.
Thank you Anish.
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Ryan Mullin
Real Estate Broker · Indianapolis, IN · Member since 2009 · 575 posts · 496 votes
10y
Originally posted by @Sean Kremer:
In my opinion if you've done all the due diligence on this house, before I'd walk away, I'd raise hell with the sellers, telling them that you don't trust them or their realtor with the way this deal has been handled, then throwing out an offer to them that would regain your interest in the house. If your going to walk anyway, and you've got time and money in this house, what could it hurt to lowball them on the way out. If its possible and you raise enough of a stink about the wasted time and money you've invested in this deal, the deal may come your way......It'll be easier to play around with them now that you don't care if you even buy the house. ( I would not let the sellers forget this fact for sure.) I've gotten a few bought this way........When you have nothing to lose.......its hard to lose.Do NOT close on this property before satisfied, after closing you'll have to argue your disagreements in front of a judge..not good. Just my opinion......
This is a turnkey situation. When you buy a property though a company like ours its like a long term partnership. And having a business partner that constantly trying to take take take and twist words, and just flat out be rude... not gonna happen. @Ashley Mullinand I have been to many many rodeos. This is not our first.
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Laurence Walsh-Hodson
OP
Real Estate Agent · Santa Clarita · Member since 2015 · 57 posts · 11 votes
10y
Originally posted by @Sean Kremer:

In my opinion if you've done all the due diligence on this house, before I'd walk away, I'd raise hell with the sellers, telling them that you don't trust them or their realtor with the way this deal has been handled, then throwing out an offer to them that would regain your interest in the house. If your going to walk anyway, and you've got time and money in this house, what could it hurt to lowball them on the way out. If its possible and you raise enough of a stink about the wasted time and money you've invested in this deal, the deal may come your way......It'll be easier to play around with them now that you don't care if you even buy the house. ( I would not let the sellers forget this fact for sure.) I've gotten a few bought this way........When you have nothing to lose.......its hard to lose.Do NOT close on this property before satisfied, after closing you'll have to argue your disagreements in front of a judge..not good. Just my opinion......
Thanks Sean.
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Laurence Walsh-Hodson
OP
Real Estate Agent · Santa Clarita · Member since 2015 · 57 posts · 11 votes
10y
Originally posted by @Chris Schady:

@Laurence Walsh-Hodson
I agree with what others have been saying... working with a reputable company that you can trust and develop a long term relationship is more important the allure of good returns with a suspect company.

At least that's my two cents...
Thanks Chris.
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Ryan Mullin
Real Estate Broker · Indianapolis, IN · Member since 2009 · 575 posts · 496 votes
10y
Originally posted by @Laurence Walsh-Hodson:

Originally posted by @Ryan Mullin:
Originally posted by @Laurence Walsh-Hodson:

Originally posted by @Jay Hinrichs:
@Ryan Mullin the Joys of BP inexperienced buyers with their version of events then the soap box starts.
Its why I posted that ( the way she posted this there is only one conclusion to be made)
Keep up the good work...
And as we all know that in 95% of the cases the Mrs. makes the yes no decision so in this case the Mrs does not want to go so this one will not go !!! I learned that within 6 months of selling RE.. be respectful to hubby but listen to wife LOL
Hi Jay, Yes it was the Mrs that killed the deal. Ashley. Not I. I was trying to work it through with FS. Ashley pulled the plug when we asked them to take responsibility to pay the lender to keep the interest rate when we needed to extend escrow because their contractor never turned in the mold report. Oh and we also asked them to stand by their contract to fix the mold issue if there was one and not just "help" us with it. Mrs. Laurence
We pulled the plug when you made this post.
Honestly, I wanted some feedback from more experienced buyers. None of them said "Oh you are being too picky." How am I supposed to know that it's "nit picky" to ask the Turnkey company to stand up to their word? The contract says "Seller will pay for mold remediation" then JR's email says FS will "help" with mold remediation. I don't get it. Which is it? You honestly think it's too picky to question that and get assurances that you will take care of it? There could be a big financial obligation there. It wasn't my intention to air our dirty laundry which is why I didn't use your company's name. I just wanted to hear if other people have had experiences like ours and it's worked out.
1. Like Jay Hinrich said.. this post was a loaded question. You had made your mind up.
2. You are really focused on the fact that Jenny said "help" in an email instead of saying "Seller will pay for mold remediation" - People talk in emails differently then they do in contracts. AND. There is no mold. again for the 1 millionth time.
3. You did air dirty laundry. People private message each other on these forums. They need to know the real story. This forum is extremely closely tied to the success of our brokerage and I won't let you come on here and try to tarnish our name. If you don't like us and you don't like our "nightmare" of a property then just simply walk away.
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Laurence Walsh-Hodson
OP
Real Estate Agent · Santa Clarita · Member since 2015 · 57 posts · 11 votes
10y
Originally posted by @Ryan Mullin:

Originally posted by @Laurence Walsh-Hodson:
Originally posted by @Ryan Mullin:

Originally posted by @Laurence Walsh-Hodson:
Originally posted by @Jay Hinrichs:

@Ryan Mullin the Joys of BP inexperienced buyers with their version of events then the soap box starts.
Its why I posted that ( the way she posted this there is only one conclusion to be made)
Keep up the good work...
And as we all know that in 95% of the cases the Mrs. makes the yes no decision so in this case the Mrs does not want to go so this one will not go !!! I learned that within 6 months of selling RE.. be respectful to hubby but listen to wife LOL
Hi Jay, Yes it was the Mrs that killed the deal. Ashley. Not I. I was trying to work it through with FS. Ashley pulled the plug when we asked them to take responsibility to pay the lender to keep the interest rate when we needed to extend escrow because their contractor never turned in the mold report. Oh and we also asked them to stand by their contract to fix the mold issue if there was one and not just "help" us with it. Mrs. Laurence
We pulled the plug when you made this post.
Honestly, I wanted some feedback from more experienced buyers. None of them said "Oh you are being too picky." How am I supposed to know that it's "nit picky" to ask the Turnkey company to stand up to their word? The contract says "Seller will pay for mold remediation" then JR's email says FS will "help" with mold remediation. I don't get it. Which is it? You honestly think it's too picky to question that and get assurances that you will take care of it? There could be a big financial obligation there. It wasn't my intention to air our dirty laundry which is why I didn't use your company's name. I just wanted to hear if other people have had experiences like ours and it's worked out.
1. Like Jay Hinrich said.. this post was a loaded question. You had made your mind up.
2. You are really focused on the fact that Jenny said "help" in an email instead of saying "Seller will pay for mold remediation" - People talk in emails differently then they do in contracts. AND. There is no mold. again for the 1 millionth time.
3. You did air dirty laundry. People private message each other on these forums. They need to know the real story. This forum is extremely closely tied to the success of our brokerage and I won't let you come on here and try to tarnish our name. If you don't like us and you don't like our "nightmare" of a property then just simply walk away.
We had not made our mind up. I was trying to get other points of view. I didn't realize that it was okay to be casual in emails on contract issues. I'm still learning and most likely it is different in Indy than in LA. I didn't realize the forum was closely tied to your success and it isn't my intention to tarnish your name. I wanted to state the facts and get other people's opinions on what they would do. I appreciate you offering to allow John to buy the property as he has already invested so much and get other property managers. I will ask him if he wants to do this.
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J ScottPro Member
Moderator
Investor · Sarasota, FL · Member since 2008 · 18k+ posts · 17k+ votes
10y
Originally posted by @Ryan Mullin:
You are entirely to "nit picky" to be investing in real estate. From what I can gather your husband "gets it" and you are nervous and scared.
....
Our contractor failed to send the test in... guess what he's busy doing actual contracting. Welcome to dealing with contractors. Guess what... we lost money too. We lost time. Still losing time as I type this.
I'm not jumping into the he-said/she-said and taking sides here (I don't know any of the parties), but after reading this post, I'll throw in an unsolicited opinion and a piece of business advice...
As a business owner, this is the WRONG way to be dealing with customer issues. Badmouthing a potential customer -- who's biggest mistake is likely just being new, naive and paranoid -- in a public forum is not good business practice. Especially given that many of your customers will be new, naive and paranoid.
As for your second statement above, it sounds like you agreed to get a mold test done and your contractor dropped the ball. Sorry, but this isn't something you just chalk up to, "Welcome to dealing with contractors." You told your customer you would do something; then you didn't do it.
I've purchased hundreds of houses (i.e., I'm not new, naive or paranoid), but if I were told by a representative of mine that they would handle something for me, didn't handle it, and then just blamed it on a bad contractor, I'd be pretty pissed too.
The fact that you can blow off the fact that you didn't follow-through on the mold test you supposedly agreed to makes me wonder if you weren't just as nonchalant about agreements you made with the sump pump and the windows. You may think these things are minor, but it's understandable that a customer wouldn't find them to be minor.
This all goes right to the heart of your role as a turnkey seller -- you need to be TRUSTWORTHY. And your comment above about the mold test doesn't instill much trust from me.
Again, I don't know you (or the OP) and it sounds like others here have had good experiences with your business, so maybe you're just having a bad day. But, my suggestion is that, in the future, when you have to "fire a customer," you do it without the name calling and perhaps an apology for when your contractors may have dropped the ball. If it weren't for your post above, I would have walked away from this thread with a relatively positive opinion of your company (based on others' comments and your other posts); but after this, I'm walking away thinking just the opposite.
My opinion probably doesn't matter to you, but just think of all your potential future customers who may read this thread and walk away with the same impression I have...
Podcast Guest on Show The Truth About Real Estate Investing in 2024 (What Investors NEED to Know)
17 Reply
Michael Thompson
Indianapolis, IN · Member since 2014 · 206 posts · 127 votes
10y
If this post says anything it's that some deals aren't just about the managing the numbers. Sometimes it's about managing the personalities of the people involved. Also, I think it's important to be on the same page as your business partner when purchasing a property. Both should be in agreement or don't move forward with the deal. Unfortunately that's easier said than done when your business partner is your spouse. Hopefully both sides can work this out! Good luck!
1 Reply
Laurence Walsh-Hodson
OP
Real Estate Agent · Santa Clarita · Member since 2015 · 57 posts · 11 votes
10y
Originally posted by @J Scott:

Originally posted by @Ryan Mullin:
You are entirely to "nit picky" to be investing in real estate. From what I can gather your husband "gets it" and you are nervous and scared.
....
Our contractor failed to send the test in... guess what he's busy doing actual contracting. Welcome to dealing with contractors. Guess what... we lost money too. We lost time. Still losing time as I type this.
I'm not jumping into the he-said/she-said and taking sides here (I don't know any of the parties), but after reading this post, I'll throw in an unsolicited opinion and a piece of business advice...
As a business owner, this is the WRONG way to be dealing with customer issues. Badmouthing a potential customer -- who's biggest mistake is likely just being new, naive and paranoid -- in a public forum is not good business practice. Especially given that many of your customers will be new, naive and paranoid.
As for your second statement above, it sounds like you agreed to get a mold test done and your contractor dropped the ball. Sorry, but this isn't something you just chalk up to, "Welcome to dealing with contractors." You told your customer you would do something; then you didn't do it.
I've purchased hundreds of houses (i.e., I'm not new, naive or paranoid), but if I were told by a representative of mine that they would handle something for me, didn't handle it, and then just blamed it on a bad contractor, I'd be pretty pissed too.
The fact that you can blow off the fact that you didn't follow-through on the mold test you supposedly agreed to makes me wonder if you weren't just as nonchalant about agreements you made with the sump pump and the windows. You may think these things are minor, but it's understandable that a customer wouldn't find them to be minor.
This all goes right to the heart of your role as a turnkey seller -- you need to be TRUSTWORTHY. And your comment above about the mold test doesn't instill much trust from me.
Again, I don't know you (or the OP) and it sounds like others here have had good experiences with your business, so maybe you're just having a bad day. But, my suggestion is that, in the future, when you have to "fire a customer," you do it without the name calling and perhaps an apology for when your contractors may have dropped the ball. If it weren't for your post above, I would have walked away from this thread with a relatively positive opinion of your company (based on others' comments and your other posts); but after this, I'm walking away thinking just the opposite.
My opinion probably doesn't matter to you, but just think of all your potential future customers who may read this thread and walk away with the same impression I have...
Thank you J for your opinion. I appreciate it.
0 Reply
Ryan Mullin
Real Estate Broker · Indianapolis, IN · Member since 2009 · 575 posts · 496 votes
10y
Originally posted by @J Scott:

Originally posted by @Ryan Mullin:
You are entirely to "nit picky" to be investing in real estate. From what I can gather your husband "gets it" and you are nervous and scared.
....
Our contractor failed to send the test in... guess what he's busy doing actual contracting. Welcome to dealing with contractors. Guess what... we lost money too. We lost time. Still losing time as I type this.
I'm not jumping into the he-said/she-said and taking sides here (I don't know any of the parties), but after reading this post, I'll throw in an unsolicited opinion and a piece of business advice...
As a business owner, this is the WRONG way to be dealing with customer issues. Badmouthing a potential customer -- who's biggest mistake is likely just being new, naive and paranoid -- in a public forum is not good business practice. Especially given that many of your customers will be new, naive and paranoid.
As for your second statement above, it sounds like you agreed to get a mold test done and your contractor dropped the ball. Sorry, but this isn't something you just chalk up to, "Welcome to dealing with contractors." You told your customer you would do something; then you didn't do it.
I've purchased hundreds of houses (i.e., I'm not new, naive or paranoid), but if I were told by a representative of mine that they would handle something for me, didn't handle it, and then just blamed it on a bad contractor, I'd be pretty pissed too.
The fact that you can blow off the fact that you didn't follow-through on the mold test you supposedly agreed to makes me wonder if you weren't just as nonchalant about agreements you made with the sump pump and the windows. You may think these things are minor, but it's understandable that a customer wouldn't find them to be minor.
This all goes right to the heart of your role as a turnkey seller -- you need to be TRUSTWORTHY. And your comment above about the mold test doesn't instill much trust from me.
Again, I don't know you (or the OP) and it sounds like others here have had good experiences with your business, so maybe you're just having a bad day. But, my suggestion is that, in the future, when you have to "fire a customer," you do it without the name calling and perhaps an apology for when your contractors may have dropped the ball. If it weren't for your post above, I would have walked away from this thread with a relatively positive opinion of your company (based on others' comments and your other posts); but after this, I'm walking away thinking just the opposite.
My opinion probably doesn't matter to you, but just think of all your potential future customers who may read this thread and walk away with the same impression I have...
Your opinion does matter to me. Ive seen you on BP for years.
And yes.. bad day. well, it was fine until I read a post on BP titled "bad Investments" and its about my company. I'd say 75% of our business comes from referrals from BP users. Not from me posting "hey I have turnkey" its from referrals from clients that are not only satisfied with us but actually impressed by how we handle these investments.
The issue with the mold test... yes, our guy dropped the ball. We were more than happy to take responsibility for that and make it right.. by, waiting until the mold test does come back to close. No problem. We even put in writing that we would take care of mold remediation. Done. Problem solved. Right before we found this post on BP we got an email asking to pay for lending fees associated with waiting extra time to close. Those who have bought from us in the past will tell you that FS Houses is completely reasonable when it comes to things like this. Pay 15 bucks a day to lender until we close.. pshhhh. Fine. No problem. BTW... the mold testing will be done early next week. Our contractor made right and paid for a rush order out of his own pocket. He dropped the ball. He paid for it. Our guy dropped the ball, and we paid for it terms of wating to close. time is money.
Its the combination of twisting our agents words, generally being rude, and then this post on BP... we simply wanted to end the relationship. We both would have made money if this deal went through but it didn't.
Me saying "welcome to dealing with contractors" is both me being frustrated with a newbie buyer and its the truth. Dealing with contractors isn't easy. RE investing isn't easy.
We had every intention on doing everything to make everything right. Those that have bought from us know that we go that extra mile.
1 Reply
Meghan Reed
Investor · West Suffield, CT · Member since 2013 · 106 posts · 42 votes
10y
Originally posted by @J Scott:

Originally posted by @Ryan Mullin:
You are entirely to "nit picky" to be investing in real estate. From what I can gather your husband "gets it" and you are nervous and scared.
....
Our contractor failed to send the test in... guess what he's busy doing actual contracting. Welcome to dealing with contractors. Guess what... we lost money too. We lost time. Still losing time as I type this.
I'm not jumping into the he-said/she-said and taking sides here (I don't know any of the parties), but after reading this post, I'll throw in an unsolicited opinion and a piece of business advice...
As a business owner, this is the WRONG way to be dealing with customer issues. Badmouthing a potential customer -- who's biggest mistake is likely just being new, naive and paranoid -- in a public forum is not good business practice. Especially given that many of your customers will be new, naive and paranoid.
As for your second statement above, it sounds like you agreed to get a mold test done and your contractor dropped the ball. Sorry, but this isn't something you just chalk up to, "Welcome to dealing with contractors." You told your customer you would do something; then you didn't do it.
I've purchased hundreds of houses (i.e., I'm not new, naive or paranoid), but if I were told by a representative of mine that they would handle something for me, didn't handle it, and then just blamed it on a bad contractor, I'd be pretty pissed too.
The fact that you can blow off the fact that you didn't follow-through on the mold test you supposedly agreed to makes me wonder if you weren't just as nonchalant about agreements you made with the sump pump and the windows. You may think these things are minor, but it's understandable that a customer wouldn't find them to be minor.
This all goes right to the heart of your role as a turnkey seller -- you need to be TRUSTWORTHY. And your comment above about the mold test doesn't instill much trust from me.
Again, I don't know you (or the OP) and it sounds like others here have had good experiences with your business, so maybe you're just having a bad day. But, my suggestion is that, in the future, when you have to "fire a customer," you do it without the name calling and perhaps an apology for when your contractors may have dropped the ball. If it weren't for your post above, I would have walked away from this thread with a relatively positive opinion of your company (based on others' comments and your other posts); but after this, I'm walking away thinking just the opposite.
My opinion probably doesn't matter to you, but just think of all your potential future customers who may read this thread and walk away with the same impression I have...
I have to say I agree whole heartedly with Jay's sentiment. They say that the customer is always right for a reason. Are they actually? Definitely not always. However, it sure doesn't make a business owner look good to bad mouth customers who have put their time, energy, and money on the line to take a chance on doing business with them.
1 Reply
Laurence Walsh-Hodson
OP
Real Estate Agent · Santa Clarita · Member since 2015 · 57 posts · 11 votes
10y
Originally posted by @Ryan Mullin:

Originally posted by @J Scott:
Originally posted by @Ryan Mullin:
You are entirely to "nit picky" to be investing in real estate. From what I can gather your husband "gets it" and you are nervous and scared.
....
Our contractor failed to send the test in... guess what he's busy doing actual contracting. Welcome to dealing with contractors. Guess what... we lost money too. We lost time. Still losing time as I type this.
I'm not jumping into the he-said/she-said and taking sides here (I don't know any of the parties), but after reading this post, I'll throw in an unsolicited opinion and a piece of business advice...
As a business owner, this is the WRONG way to be dealing with customer issues. Badmouthing a potential customer -- who's biggest mistake is likely just being new, naive and paranoid -- in a public forum is not good business practice. Especially given that many of your customers will be new, naive and paranoid.
As for your second statement above, it sounds like you agreed to get a mold test done and your contractor dropped the ball. Sorry, but this isn't something you just chalk up to, "Welcome to dealing with contractors." You told your customer you would do something; then you didn't do it.
I've purchased hundreds of houses (i.e., I'm not new, naive or paranoid), but if I were told by a representative of mine that they would handle something for me, didn't handle it, and then just blamed it on a bad contractor, I'd be pretty pissed too.
The fact that you can blow off the fact that you didn't follow-through on the mold test you supposedly agreed to makes me wonder if you weren't just as nonchalant about agreements you made with the sump pump and the windows. You may think these things are minor, but it's understandable that a customer wouldn't find them to be minor.
This all goes right to the heart of your role as a turnkey seller -- you need to be TRUSTWORTHY. And your comment above about the mold test doesn't instill much trust from me.
Again, I don't know you (or the OP) and it sounds like others here have had good experiences with your business, so maybe you're just having a bad day. But, my suggestion is that, in the future, when you have to "fire a customer," you do it without the name calling and perhaps an apology for when your contractors may have dropped the ball. If it weren't for your post above, I would have walked away from this thread with a relatively positive opinion of your company (based on others' comments and your other posts); but after this, I'm walking away thinking just the opposite.
My opinion probably doesn't matter to you, but just think of all your potential future customers who may read this thread and walk away with the same impression I have...
Your opinion does matter to me. Ive seen you on BP for years.
And yes.. bad day. well, it was fine until I read a post on BP titled "bad Investments" and its about my company. I'd say 75% of our business comes from referrals from BP users. Not from me posting "hey I have turnkey" its from referrals from clients that are not only satisfied with us but actually impressed by how we handle these investments.
The issue with the mold test... yes, our guy dropped the ball. We were more than happy to take responsibility for that and make it right.. by, waiting until the mold test does come back to close. No problem. We even put in writing that we would take care of mold remediation. Done. Problem solved. Right before we found this post on BP we got an email asking to pay for lending fees associated with waiting extra time to close. Those who have bought from us in the past will tell you that FS Houses is completely reasonable when it comes to things like this. Pay 15 bucks a day to lender until we close.. pshhhh. Fine. No problem. BTW... the mold testing will be done early next week. Our contractor made right and paid for a rush order out of his own pocket. He dropped the ball. He paid for it. Our guy dropped the ball, and we paid for it terms of wating to close. time is money.
Its the combination of twisting our agents words, generally being rude, and then this post on BP... we simply wanted to end the relationship. We both would have made money if this deal went through but it didn't.
Me saying "welcome to dealing with contractors" is both me being frustrated with a newbie buyer and its the truth. Dealing with contractors isn't easy. RE investing isn't easy.
We had every intention on doing everything to make everything right. Those that have bought from us know that we go that extra mile.
Not sure when I was "generally rude", but I agree that public name calling is in poor taste especially since I didn't "out" your company, you did.
2 Reply
Ryan Mullin
Real Estate Broker · Indianapolis, IN · Member since 2009 · 575 posts · 496 votes
10y

I have to say I agree whole heartedly with Jay's sentiment. They say that the customer is always right for a reason. Are they actually? Definitely not always. However, it sure doesn't make a business owner look good to bad mouth customers who have put their time, energy, and money on the line to take a chance on doing business with them.
Definitely didn't mean to bad mouth anyone. I get pretty passionate about my company.
0 Reply
Ryan Mullin
Real Estate Broker · Indianapolis, IN · Member since 2009 · 575 posts · 496 votes
10y

Not sure when I was "generally rude", but I agree that public name calling is in poor taste especially since I didn't "out" your company, you did.
Didn't mean to call you any names. And don't worry my company has not been "outted" as we didn't do anything wrong.
0 Reply
Manolo D.
Contractor · Los Angeles, CA · Member since 2015 · 4k+ posts · 1k+ votes
10y
Wow, amazing story, there was no mention of names and a violent reaction was triggered. Lol.
0 Reply
Ryan Mullin
Real Estate Broker · Indianapolis, IN · Member since 2009 · 575 posts · 496 votes
10y
Originally posted by @Manolo D.:

Wow, amazing story, there was no mention of names and a violent reaction was triggered. Lol.
Yep. when I first responded I said why. People private message each other. and they deserve to know the truth. I don't think my reaction was "violent".. more like... a bit frustrated. LOL.
0 Reply
Account Closed
Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes
10y
Originally posted by @J Scott:

Originally posted by @Ryan Mullin:
You are entirely to "nit picky" to be investing in real estate. From what I can gather your husband "gets it" and you are nervous and scared.
....
Our contractor failed to send the test in... guess what he's busy doing actual contracting. Welcome to dealing with contractors. Guess what... we lost money too. We lost time. Still losing time as I type this.
I'm not jumping into the he-said/she-said and taking sides here (I don't know any of the parties), but after reading this post, I'll throw in an unsolicited opinion and a piece of business advice...
As a business owner, this is the WRONG way to be dealing with customer issues. Badmouthing a potential customer -- who's biggest mistake is likely just being new, naive and paranoid -- in a public forum is not good business practice. Especially given that many of your customers will be new, naive and paranoid.
As for your second statement above, it sounds like you agreed to get a mold test done and your contractor dropped the ball. Sorry, but this isn't something you just chalk up to, "Welcome to dealing with contractors." You told your customer you would do something; then you didn't do it.
I've purchased hundreds of houses (i.e., I'm not new, naive or paranoid), but if I were told by a representative of mine that they would handle something for me, didn't handle it, and then just blamed it on a bad contractor, I'd be pretty pissed too.
The fact that you can blow off the fact that you didn't follow-through on the mold test you supposedly agreed to makes me wonder if you weren't just as nonchalant about agreements you made with the sump pump and the windows. You may think these things are minor, but it's understandable that a customer wouldn't find them to be minor.
This all goes right to the heart of your role as a turnkey seller -- you need to be TRUSTWORTHY. And your comment above about the mold test doesn't instill much trust from me.
Again, I don't know you (or the OP) and it sounds like others here have had good experiences with your business, so maybe you're just having a bad day. But, my suggestion is that, in the future, when you have to "fire a customer," you do it without the name calling and perhaps an apology for when your contractors may have dropped the ball. If it weren't for your post above, I would have walked away from this thread with a relatively positive opinion of your company (based on others' comments and your other posts); but after this, I'm walking away thinking just the opposite.
My opinion probably doesn't matter to you, but just think of all your potential future customers who may read this thread and walk away with the same impression I have...
Ok folks. Mr. Rational is in the house! Everyone step away from the message boards and emails and get back to meaningful work. You know, the parts of your business/investments where you do what you said you would do, and with a good attitude.
0 Reply
Manolo D.
Contractor · Los Angeles, CA · Member since 2015 · 4k+ posts · 1k+ votes
10y
Ryan Mullin It is always part of the business, I don't think they are that extensive as far as PMs go, especially because there was no names mentioned. Sometimes you get bad clients, sometimes you are the bad provider, both take a look at it a different way. There is always two sides of the coin if things start to get sour. My government clients are always like that, the architects can't get the right stuff on paper all the time, the end user has a different imagination, and we always have to explain how we do it before we do it, especially if they are tenant improvement projects. Now that you have exposed yourself being the subject of the thread, might have exposed your company on a bad rep even if you have defended your side. People always see the bad situation and will not mind anything good. Just man's nature of thinking.
0 Reply
David Faulkner
Investor · Orange County, CA · Member since 2015 · 2k+ posts · 3k+ votes
10y
Not going to comment on this particular deal or the provider, but I have to say that I agree with @Meghan Reed ... if you are an inexperienced investor, you are stepping over dollars locally in CA to try to pick up dimes out of state in Indy. This is not an CA vs Indy thing, it is a hands on local vs passive out of state thing. If you are an inexperienced investor that wants passive cashflow with a Real Estate investment, by a diversified basket of REITs and be done with it ... otherwise, invest local and hands on until you learn the ins and outs, then parlay that experience out of state if you want. You won't likely get high cash flow day 1 from CA, but boy the capital gains and rent growth sure are nice ... and if you do it right then those gains are NOT based on speculation that the market will shoot up like a rocket forever. This is my perspective, having invested successfully both locally in SoCal and out of state (Phoenix, not Indy) over the last 12 years.
1 Reply
Kenneth Wong
Bronx, NY · Member since 2014 · 41 posts · 17 votes
10y
Hopefully, at this point, you have "talked" the hubby out of this deal.
As I own several out of state properties, but within 90 miles, I can tell you first hand, if there are potential problems, the long distance aspect may and will create headaches for you both.
Luckily, I have been fortunate to have great tenants in the closest properties, but there have been numerous "issues," some natural, and some due to tenants, that can cause financial problems.
As you are in California, you had better have access to some good resources in Indy, or you will be paying top dollar for good work, or even more money for subpar work, with follow up re-work!
I am confidente you can find some properties with similar potential- on paper and real cash flow.
Best wishes for the holidays.
1 Reply
Steven S bond
Professional · Astoria, NY · Member since 2015 · 30 posts · 4 votes
10y
Hi:
Living close to NYC. I have heard every single scam flam flam double talk down right lie and confidence game. I hope you have dare i say a qualified real estate attorney.
In every real estate transaction there are legal mandates that allow you to pull out of the deal at a certain point if the consideration has not been met by the seller.
The games gone you know it you see the smoke- get out---- this type of company is the worst and as prior parties chimed in wait till its rent time. It will get worse get out.
Steve
1 Reply
Account Closed
Registered Nurse (ICU) · San Jose, CA · Member since 2014 · 496 posts · 332 votes
10y
Laurence Walsh-Hodson My advice to you is to stop replying to this thread before you burn some more bridges. Its unfortunate that you and John are going to lose this deal. FS Houses has a waiting list for deals just like yours. You should have considered yourself lucky just to get the opportunity to work with them. I get the feeling that cash flow investing in these neighborhoods is not for you. Perhaps you should go into the A and B+ type areas where your expectations will be met. Of course you will have minimal to no cash flow but you won't have to worry about old windows and possible mold. Ryan Mullin send me the info on the duplex...I'll buy it! :) Keep up the good work! @EVERYONE I have been working with FS Houses for over a year now and they are the best in the buisness. Knowing what I know now I realize how lucky I was to find them. They continue to mentor me through my investing endeavors, and provide me with great properties. I can't wait to get more from them. Sounds like a great opportunity on a duplex just opened up. I would call them and jump on it!
5 Reply
Michael Hickerson
Professional · Westlake Village, CA · Member since 2013 · 8 posts · 4 votes
10y
Investing is fraught with hidden traps, and is hard enough in the same city, let alone in a state where the culture is way different. I recommend to my clients to buy local, and if that's too pricey look in areas within a six hour drive max. From Montrose, that still puts you in the Phoenix and Vegas markets, although Ventura County has opportunities as well ( shameless promotion) There are plenty of markets where you don't have to worry about snow or flooding. Sun belt is the way to go IMHO.
2 Reply
Douglas W. Rink
Residential Real Estate Broker · Newton, NC · Member since 2015 · 13 posts · 17 votes
10y
No- Walk away give up your earnest money if you have to. RE investing is a local business and touch and feel. I get bad vibes from your email and I think you know the answer to your own question. I did this for a long time, you could lose more than money. My advice: Never invest more than 20-miles from your front door. Get out of his deal...
-dr
0 Reply

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