All Forum Posts by: James David Powell

@Ian Parrish

Well, I’ve been patient through this. Very patient. Until recently, I didn’t have substantial precedence—now, I do. Shortly after I spoke with these fellas’ here (All of them helpful. Including, yourself.) I started seeking “advice” and pretty much, everything I’ve been told that would happen, has happened. And now, I’m told that I’m in a very good position.

I will remember the clauses you mentioned for the next time I decide to do this, if ever I want to again. Hahaha. I think what I’ve learned, is everything not to do. Ever. Period. . . .

Anyway, thank you for you’re advise, Ian. Very practical. 👍🏻

@Jay Hinrichs

Steve’s advice seems like it has the best possibility to work. The only thing I can’t figure out is why they won’t give me contract?

@Dennis M.

It would have been a good idea looking back, haha. I went through with the deal because we built a lot of rapport, I felt comfortable with him and he “seemed” most qualified—said person(s) had experience with older homes, general contractor, etc. Though, I did have a bad feeling about the whole thing, especially after they wouldn’t produce a hard copy of the contract. I wanted to renege but knew it was binding.

My first mistake was not knowing enough about how land contracts work. (It could be said, not hiring an attorney. Haha. But, I like to figure things out myself.) My second, letting him sell me on the land contract (more money than other offer once the residual was paid, residual income, satisfied neighbors due to house being renovated, etc) instead of me listening to my intuition, and dealing only with cash offers—even if they were a little less. Lesson learned.

Steve and Jay like to use a lease agreement, with the option to buy. I like this strategy. And if it ever makes sense for me to do in the future, that’s what I will do.

And, maybe you are helping me you just don’t know it yet.

@Chuck Mader

That’s what I keep thinking about. I just need to know what to expect and prepare for. Jay said, “the devil lies in the details”. So true. D***. I’ve never had to deal with this before and want to know what I’m doing before I take any steps further.

@Michael Ealy

Yeah—I made an emotional decision. It’s strictly business from here on out. Every deal I get will be on my terms. I will control the contract, from now on.

I’ve learned a lot going through this process, and am most thankful for platforms like this where people can connect with each other and share their stories and advice.

Thank you for sharing, Micheal. I will persist.

@Jay Hinrichs

@Steve Vaughan

Both of you are an immense help! I appreciate your replies and will make the most of them.

If this helps, they were suppose to have everything ready for closing in a month after signing the contract (and if it wasn't in writing, that's what this person verbally communicated to me), which was when I was going to receive the EMD, followed by the monthly rent. Though, since I don't have a hard copy of the contract it's hard to remember the fine details and can't be specific, or recollect how specific the language of the contract was.

But, as Steve mentioned, the EM was never paid; therefore, isn’t the contract breached?

@Steve Vaughan

That sounds really nice! If I do seller financing again, that will be the ONLY way I do it! Thanks for sharing your advice and story.

—JP

@Jay Hinrichs

I’ll have to do some digging on this. I do hope it won’t take that long, on top of the amount of time it’s already “suppose” to take. Ugh.

Thanks again!

—JP

@Tchaka Owen

Hahaha! Tchaka, true and humorous. Thank you! I’m just trying to get as much input from others who have years more of experience than I do.

And, I'm a REI! I will look back at this post one day laughing at the mess I got myself into. I will not let this stop me.

—JP

@Steve Vaughan

Ahh, I see. Treat them as tenets who haven’t paid rent which gives me the right to evict them under the guise of a verbal contract. Then, wait to see their intention. At which point, the situation will become more clear—they will either pay me, or they won’t.

After that, they will be forced to reveal the land contract in court, or simply leave if they can’t pay me. Am I hearing everything correctly?

—JP

@Jay Hinrichs

That’s what I am hoping for. Thanks, Jay.

@Jay Hinrichs

Haha! So, call the police!?

Jokes aside, we signed a contract. Said person has it and won’t give me a copy—I’ve asked for it numerous times and I’ve tried speaking with them about the situation they’re in. The only thing I haven’t done is, go to the recorders office to see if they notarized the contract. I really don’t want to put them through forfeiture, especially since I got emotionally involved and know their whole family that resides there.

It’s just bothering me now to the point that I’m seeking advice. I keep getting the feeling that I’m going to have to take it back in order to get what I want. Which is what I’m asking.

Thank you very much Jay, for responding. It made light of a stressful situation.

—JP

@Nathan G.

Thank you for your response, Nathan. This is my first deal and I royally f***** up, I know. I went through a lot to get this property wrapped up in the first place—before I even “sold” it. The person(s) who hold the contract build the most rapport with me (I felt most comfortable with them), I thought it would be a good long term investment and good residual income until the remainder was paid. This is all a learning experience for me, though.

One lady, I almost sold the house to was handicapped and wanted to buy it for $60,000. She was in way over her head I felt, so I declined. This other guy offered me $42,000—I wish I would’ve accepted it, instead of being so greedy wanting nothing less than $55,000 for it. The thing is, it’s my first deal. Which, I forgot to mention, the sale price on the land contract is $50,000.

Again, thank you!

—JP