Getting cut out of a flip deal.

Getting cut out of a flip deal.

Member since 2022 · 19 posts · 2 votes

About 3 months ago I came across some one in a tough situation. Long story short they were about to lose their home and I made a deal with them to buy it but it needed to be taken out of bankruptcy and gone thru probate. It was a complicated deal. I could have figured it out on my own but I had a childhood friend who worked in real estate and the deal I had made with the guy was insane. The house need 100-150k worth of rehab but I closed him at 215k once finished the house will be worth between 700-800k. Anyways, with there being so many moving parts and deadlines I didn’t want to take it on by myself and it was such a good sized deal I told my friend if he could navigate the courts I’d partner with him. Well his boss was impressed with my real estate and finance skills so I ended up working for their company well it turned out their company was wholesaling houses they didn’t really flip many homes. Anyways, my position got “paused”  and now I am being ignored about what the status of our flip is. Which gives me the impression they are going to try and screw me out of the deal. But this deal had nothing to do with their business. I closed the deal and have messages about the work I’ve done to get this deal done and to keep it together. I didn’t think someone that was like a little brother to me would try to screw me out of a no brainer huge deal but it’s starting to look that way. Do I have an legal recourse? Because I was told when my position was paused that we were still partners and nothing on the flip deal was changing. But I am being cut out of the loop. I do not want to come at this aggressively but before I make another attempt to contact him I’d like to find out a little more about any kind of leverage I have. He is the executor on the account and his real estate license is up on this and I have messages from him that would jeopardize his license but I don’t want to go that route if I don’t have to. His new business model is basically based on him helping people flip houses and he’ll help maximize their profits so if this got out that he screwed me out of the deal if made and brought to him it’s Ruin his credibility.

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  • Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
    2y

    This sounds like a real dumpster fire. I assume no written agreement? What does "paused" mean?

  • Member since 2022 · 19 posts · 2 votes
    2y
    haha right? I was fine with them “pausing” my position. Which was just their chicken way of letting me go. When I found out the actually company was just wholesaling I wasn’t very interested. Originally, I thought we bought off market to flip but they were all over the place. I am good at building a relationship with someone and getting them to open up about their situation and then I’m really good at coming up with creative solutions. I was let go because I only averaged 9 calls a day and we were supposed to make 30-40. But a few days prior I asked how many I had made that day  and it was 60 so mathematically I’ve I hadn’t made a call the rest of the week that claim was impossible but I was fine with that. I just made sure to clarify we weren’t “pausing” the deal I brought in because it had nothing to do with the company they hired me to. But I was promised no this had nothing to do with that and we’re still partners on the deal. It appears they restructured to actually do more flips my buddy has a decent social media presence and is boasting about his last two flips and the profits are about half of this one and required 1 million in capital. So idk if they let me go because they have been doing real estate full time for 10 years and the 1 deal I brought in was easily the largest ROI. And the other two I’ve done on my own were home runs. My first home cost me 10,000 out of pocket and now I have 600k in equity. My other deal I did sub to and novated the property so I had no holding cost and I made money on the renovations and selling the 3% mortgage along with the house when rates were 7.5% I think my buddy felt threatened because he was like a little brother to me but I don’t want to ruin our relationship and handle this between us but I want to know if I have a legal leg to stand on or if it’s going to come to dude if you screw me. I’m going to post the video of the true story of what happened and the only value you brought to the deal was stealing it. I may not have enough to win a court case but I have emails of him needing certain documents like the BK balance and loan number which I found before it was too late and saved the deal because I knew it was public record 

    Quote from @Marcus Auerbach:

    This sounds like a real dumpster fire. I assume no written agreement? What does "paused" mean?


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