UNSCRUPULOUS INVESTMENT COMPANY ALERT!!!

UNSCRUPULOUS INVESTMENT COMPANY ALERT!!!

Investor · Las Vegas. Jacksonville, Bay Area Ca, Nv, Ca, Fl · Member since 2015 · 511 posts · 220 votes

So, I find a property out in Jacksonville, Florida that I would like to buy and flip. This property is in very bad shape and would need a contractor or a very skilled rehabber to get this thing repaired and resold. The entire floor in the kitchen is rotted away do to the roof being in such bad shape it leaked causing the floor joist and sub-flooring below to totally disappear, this is also common in 2 other areas of the house. I contact the seller and after a few modifications to the purchase agreement we came to a satisfactory structured contract. He signed the contract and emailed over to me around 8am his time ( Jax ) which is only 5am my time ( California ). While checking my email that morning another email came in from this seller stating that he had a better offer and would not honor our agreement. I responded by telling him that this was a very un-professional practice which he replied " wouldn't you do the same".... Well the story get's better read on! After about 2 weeks I noticed that the property was still active so I emailed him for a explanation. His answer was that a car ran into the building and the buyer is on board but can't close until the insurance company investigates or something is finished, some b.s... Karma.. Another 2 or 3 days later he emails me asking me to reconsider purchasing the property. I said I would do it if he is honorable this time and don't sell the property out from under me again. He stated that " you have my word" ...lol. Well we go into contract and both sign the agreement. I had a 10 day due diligence so I packed up the truck and started out to Florida from Ca, a 3 day trip. I needed a break so a road trip was a great getaway. The whole time I was in contact with this seller and he understood I was driving through 8 states to walk the property. I get there and noticed that the pictures did not show that the roof was a total lost including most of the roof framing. So I sent him a email requesting a $1000 discount to help pay for the materials I would need to reframe the roof. He replied " I am out of the country and the lawyer will change the pricing on the contract and reach out to me" , O.K great, I informed the Title Company about the situation. A few days went by with no contact by the lawyer after I inquire with seller it was stated that the lawyer was running behind and he would be contacting me soon. Now I know this was a stall tactic... I get back to Ca, did some investigating and found out that the property was sold via Quit Claim to another buyer and he did this while I was in town doing my walk through. What a sleazy person, knowing I was travelling all that way to close the deal. So much for his "word". What a idiot to open his self up the legal recourse. If you ever come across Marius Investments, LLC stay away. After years in this business, by far this is the most unscrupululous investment company I have come across.

My trip wan't wasted , I was able to check on multiple investment properties across the lower states on my way there and back.

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Investor · Ocala, FL · Member since 2016 · 299 posts · 110 votes
9y

In the future, if a seller in Florida signs a sales contract and sends it to you, then backs out - consider putting a lis pendens on the property.  It will cloud the title for another sale and he should have offered to pay you something to buy you out of your purchase contract.

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  • Investor · Orange Park, FL · Member since 2016 · 30 posts · 7 votes
    9y

    Thanks for the story and the heads up!

  • Real Estate Agent · Orlando, FL · Member since 2008 · 551 posts · 159 votes
    9y

    @Robert Rayford were you buying from a wholesaler or the actual title holder?

  • Investor · Jacksonville, FL · Member since 2015 · 94 posts · 32 votes
    9y

    Very unfortunate, @Robert Rayford. Thanks for sharing. Like John, I am curious. Was this a wholesaler? I have came across a couple shady wholesalers out here. When they tell me to bring my cordless drill to get into a property to do an inspection...no.

  • Investor · Las Vegas. Jacksonville, Bay Area Ca, Nv, Ca, Fl · Member since 2015 · 511 posts · 220 votes
    9y

    @John Kent, He is a paper flipper. He buys Tax Deeds and resales the property to other Investors, mostly newbies. I did the my homework on the property including running a prelim title search so a Quite Title action would have been obtainable. He is really new at this and doesn't understand that this is not the swap meet. The Real Estate Profession is a small and connected world. We have our standards and integrity's. I am a easy going person and would like to think that this happened for a reason and I dodged a bullet. 

  • Real Estate Investor · Miami, FL · Member since 2013 · 474 posts · 214 votes
    9y

    Sorry to hear that story Robert. No wonder we weren't able to meet up...let me know next time you are in town. I am still very interested in working together. 

  • Investor · Las Vegas. Jacksonville, Bay Area Ca, Nv, Ca, Fl · Member since 2015 · 511 posts · 220 votes
    9y

    Hey @Maxwell Lee, I will back out that way in the next couple weeks. I am putting together some spec build projects. We could meet up then.

  • Real Estate Investor · Miami, FL · Member since 2013 · 474 posts · 214 votes
    9y

    Great! Looking forward to it. 

  • Real Estate Agent · Orlando, FL · Member since 2008 · 551 posts · 159 votes
    9y
    Originally posted by @Robert Rayford:

    @John Kent, He is a paper flipper. He buys Tax Deeds and resales the property to other Investors, mostly newbies. I did the my homework on the property including running a prelim title search so a Quite Title action would have been obtainable. He is really new at this and doesn't understand that this is not the swap meet. The Real Estate Profession is a small and connected world. We have our standards and integrity's. I am a easy going person and would like to think that this happened for a reason and I dodged a bullet. 

    Happy to hear that you were able to dodge the bullet. There is a group going around teaching tax deed flipping here in FL. I brought some materials from one of their students for a rental cleanup and was screwed on the deal. While I attribute the situation to a lack of professionalism rather than an act of malice, this type of behavior seems to be endemic in the wholesaler sector of the business.

    All my best to you on your future endeavours. 

  • Investor · Ocala, FL · Member since 2016 · 299 posts · 110 votes
    9y

    In the future, if a seller in Florida signs a sales contract and sends it to you, then backs out - consider putting a lis pendens on the property.  It will cloud the title for another sale and he should have offered to pay you something to buy you out of your purchase contract.

  • Real Estate Agent · Orlando, FL · Member since 2008 · 551 posts · 159 votes
    9y

    @Marelyn Valdes a lis pendis is a notice of a legal action against a person, estate, or business. How exactly does that cloud a property title?

  • Investor · Las Vegas. Jacksonville, Bay Area Ca, Nv, Ca, Fl · Member since 2015 · 511 posts · 220 votes
    9y

    @John Kent , @Marelyn Valdes . A lis pendens will put a buyer on warning that a lawsuit is possible or suit pending against the Title. If must be filed and recorded with the County. The only problem with this is by the time I found out about the "behind the back" sale it was already recorded. A lis pendens would then only impact the new owner on the resale. I put this guy on warning and let him know that his actions and company's name would be shared with other's. I caulked this up as a learning experience and moved on.   

  • Shawn AckermanPro Member
    Real Estate Entrepreneur · Mid West, East Coast · Member since 2015 · 3k+ posts · 1k+ votes
    9y

    @Robert Rayford Thanks for the story.

  • Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
    9y

    YOu can file a notice/affidavit/memorandum with the courts, stating that you have a contract on x property and that the closing is set for such and such a date. Add your phone #. Record that (make sure that you write on it to cross-reference to x address, as they'd otherwise only put it under your name) after you sign a contract. That clouds the title. 

    You can't file a lis pendens, because that states that a lawsuit is pending. If you have signed a contract to purchase, that does not mean that you're planning to sue the seller. A false lis pendens can seriously mess up the seller, who wouldn't be able to sell any properties as long as that hasn't been resolved and that would leave you open for a lawsuit.

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

    @Michaela G.  there can be major repercussions messing with folks title.

    and if your going to sue for performance which is what you basically are wanting to do once you have a valid contract. then you must also on the day of closing put 100% of the cash into escrow and leave it there as you go through the court system.. this is where the wholesalers fall down usually.. they don't have 100% of the purchase price liquid and can't leave it in escrow for a year or two.. so when the close date comes and goes and no cash is in escrow the purchase contract is no void and the cloud on title sunsets..

  • Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
    9y

    @Jay Hinrichs , I did file for performance, twice. There was no requirement for me to keep the purchase amount in escrow. This was in Georgia, so, likely varies between states. 

    I ended up getting both of those properties - both sellers had some better offers and stopped communicating with me.

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

    @Michaela G.  I suspect your correct varies by state the one I did I had to put all the cash into escrow day of closing  100k plus.. but there was 300k in profit in that one deal.. so it was worth it for us .. demo ing the house this week.. 3 700k new builds starting in the summer.  2.1 million deal..

    would I do this for low end homes no way.. too many to buy and not worth my time.

  • Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
    9y

    @Jay Hinrichs . I did have to set up a closing and have the funds ready and when she didn't show, that was utilized in court.

  • Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
    9y

    @Jay Hinrichs , sounds like some nice deals. I assume in Charleston, since you mentioned a few times that you're working there.

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

    @Michaela G.  that's my point you have to have the money.. most wholesalers don't have any money or enough money to actually pay cash for the homes.. so their little trick of recording the contract is Moot .. seller simply waits out the close date when they don't close the contract is Void.. title companies will write around it... But if your like me and I take it your self  a bona fide buyer then you do have the right to do this.

    I only did it because I paid the ladies back taxs to the toon of 40k.. and then she went dark.. and of course I had a nice equity play there... but had I just had refundable EM up I would have just moved on.

  • Investor · Jacksonville, FL · Member since 2015 · 504 posts · 217 votes
    9y

    I encountered Marius LLC posting a bunch of local county Lands available properties that are still available for purchase over the counter at the tax collectors office. He markets them on a squeeze page as his own. There was a commercial property purchased legitimately from Lands Available and posted on Ioopnet . The realtor is part of Marius and he had his brother or a relative advertising the property on Facebook and other phony MLS sights for 20 k more than they are making the owner aware of. I saw this then navigated to the squeeze page and discovered many Lands Available properties they have zero right to market. I emailed him and told him these are still available otc. Now he is emailing threats to me.

  • Investor · Ocala, FL · Member since 2016 · 299 posts · 110 votes
    9y

    @Carolyn Morales , have you reported it to the local Board of Realtors?  I would make screenshots and send them to the BOR.

  • Investor · Jacksonville, FL · Member since 2015 · 504 posts · 217 votes
    9y

    Marelyn Valdes I looked into it but they want hand written or typed.. not email and they want print outs with proof. By now he has blocked me from his pages. But I bet I can find more If I keep looking.

  • Investor · Las Vegas. Jacksonville, Bay Area Ca, Nv, Ca, Fl · Member since 2015 · 511 posts · 220 votes
    9y

    @Marelyn Valdes , @Carolyn Morales, @John Kent@Maxwell Lee , This guy is totally out of line. I think someone may have to give notice to the Tax Assessors Office....:) 

  • Investor · Las Vegas. Jacksonville, Bay Area Ca, Nv, Ca, Fl · Member since 2015 · 511 posts · 220 votes
    9y

    @Marelyn Valdes , @Carolyn Morales,  This guy is totally out of line. I think someone may have to give notice to the Tax Assessors Office, that he is marking their holdings.

  • Investor · Jacksonville, FL · Member since 2015 · 504 posts · 217 votes
    9y
    Originally posted by @Tony Figurelli:

    Very unfortunate, @Robert Rayford. Thanks for sharing. Like John, I am curious. Was this a wholesaler? I have came across a couple shady wholesalers out here. When they tell me to bring my cordless drill to get into a property to do an inspection...no.

     Oh My we must have encountered the same reimeetup daily email people selling properties. " YOU will need a drill motor to get in". Well that doesn't work when there are 40 different types of screw heads and nails in the doors bolted shut. Hmm did we go try.to look at the same house? Was that Albany st 32220?

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