Wholesaling Co owned property

Member since 2020 · 20 posts · 0 votes

I have been approached by someone who wants to sell their interest in a property. They own 1/4 interest. I would like to purchase and promptly put the property up for sale since I would have equitable interest. Is there any issues anyone sees?

0 Reply

35 views

Most Popular Reply

Tom GimerBusiness Member

DMV · Member since 2017 · 3k+ posts · 3k+ votes

This is the best thing I’ve read during the crisis. So thank you.

This tale includes government corruption, several conflicts of interest, defrauding the elderly, and an NDA that doesn’t seem to fit logically in any place in the fact pattern.

I can’t wait to read the next chapter. Hopefully it spells out the deal between buyer, attorney and 25% owner!

Gimer Law516 Reviews

Website View Page

4 Reply

See this reply in the discussion

38 Replies

Jump to latestLatest

Sort by

Bill F.
Investor · Boston, MA · Member since 2015 · 1k+ posts · 3k+ votes
6y
@Account Closed

Matt Petrick.

You clearly have made up your mind on what to do. Most everyone on this thread has told you it is a bad idea, but you don't want advice, you wanted confirmation. You did what you wanted so you'll argue with everyone to protect the illusion that you are "right".

More power to you Matt Petrick. I hope you don't end up screwing over some elderly people so you can collude with your government contacts to enrich yourself, but what will be will be. I also hope you are lying to all of us and don't actually run a brokerage, but it wouldn't surprise me to be honest.

May your days be filled with people just like you, Matt Petrick.
1 Reply
Account Closed
OP
Member since 2020 · 20 posts · 0 votes
6y
@Bill F.

Thanks for the words. I purchased two separate tracts for just over $750K. I put them up for sale to the government for just over $11 million together. I am going to offer the other owners $2 million, I doubt they even know that the agency is considering their land as I have heard they are really worried about a partition suit.   I already received interest from the government for one of the tracts for $6 million and they are just waiting for me to gain the full title. They are going to advertise to the media that they are taking so long to do a thorough job.

From reading, sounds like as long as I gain full title then there are no issues, and anyone's thoughts on fraud are put to the side as I would have full ownership. My lawyer partner for the agency said that he doubts anyone would use an open records request to uncover the dealings, even then, a lot would fall under the lawyer work doctrine and can't be seen.
0 Reply
Wayne Brooks
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
6y
@Account Closed It is amazing that you are “President of a real estate brokerage” but yet you thought if you got a 1/4 interest in a property you could then offer the complete property for sale. BTW, unless you have some funny laws in your state....you are either licensed or you’re not....no one is “exempt” from state licensing laws.
1 Reply
Account Closed
OP
Member since 2020 · 20 posts · 0 votes
6y

@Wayne Brooks I am exempt because I am an owner of the property.
0 Reply
Wayne Brooks
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
6y
Well yes, everyone is exempt if they are the actual owner of the property.
0 Reply
Lydia R.
Investor · Austin TX · Member since 2016 · 1k+ posts · 2k+ votes
6y
@Matt Petrick If they only own 25% of the property then they can only sell you 25% of the property. You need to contact the other parties who own the other 75% if you want to be able to sell this property.
0 Reply
Lydia R.
Investor · Austin TX · Member since 2016 · 1k+ posts · 2k+ votes
6y
@Tom Gimer Sometimes you have to just let a person fall off a cliff. Clearly the OP has a blatant disregard for the law and that tends to lead to jail time. Some people look great in orange!
1 Reply
Account Closed
OP
Member since 2020 · 20 posts · 0 votes
6y
@Lydia T.
I am not sure why I would be going to jail. I am not acting as a licensee as I am using a separate LLc. I am acting as an owner and principal in the transaction. Nothing fraudulent is happening as I am only proposing the sale of the property, not listing it for sale on an MLS. The other tenants can do the same thing as me, so it is all fine.
0 Reply
Account Closed
OP
Member since 2020 · 20 posts · 0 votes
6y
@Lydia T. @Tom Gimer
This is forum post is where I got my idea to do what I am doing. Everyone on here said that everything is cool and no issues.
https://www.biggerpockets.com/forums/21/topics/783795-real-estate-fraud-and-deceit?page=1
0 Reply
Tom GimerBusiness Member
DMV · Member since 2017 · 3k+ posts · 3k+ votes
6y
@Account Closed Not accurate. My comment: "Whoever sold the 12.5% to the wolves screwed the family."

And any time you see Account Closed in a thread... shady.

Sure, it's possible this transaction may turn out to be profitable for you... but it will be because information was shielded from the other owners, not due to some skill you brought to the table or value you added.
Gimer Law516 Reviews
Website View Page
0 Reply
J.j. McGuigan
Real Estate Investor · Wichita, KS · Member since 2014 · 60 posts · 23 votes
6y
I have't been on bigger pockets in months and this is the first thread I've read since. Holy hell !!! I know I'm a newbie at this but there's all kinds of entertaining mess going on here and for the sake of the elderly owners of the property I hope they don't exist and this is just a troll lol
0 Reply
Account Closed
OP
Member since 2020 · 20 posts · 0 votes
6y
Today, per state law, I was declared a responsible offeror by the agency and can now enter into negotiations to sell the property. Now I just need to start working on the other tenants while the agency comes in to do core drilling.
0 Reply
Arthur Schwartz
Investor · Baltimore, MD · Member since 2019 · 163 posts · 46 votes
4y
I am interested in how this situation played out. What happened? My take on whether a person can buy a partial interest is yes. Legally, the owner of even a 1% interest can later file for a partition by sale or partition in kind. The first option requires the other owners to either buy out the plaintiff or the property is normally put up for auction. The second option is simply a physical subdivision and often used for raw land. In addition, either partition normally allows each owner to present their income and expenses on the property; the division of proceeds; or the division of land; is fair. (this is not legal advice)
0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.