All Forum Posts by: Charlie MacPherson

I hope you have a lot of cash available to cover the FTC fines.  Fines for unsolicited calls and texts run from $500 to $1,500 PER CALL and there are a lot of attorneys out there looking for people like you to sue.  They work on contingency, so it costs the plaintiff nothing unless the attorney collects from you.

Take a look at: https://www.fcc.gov/document/f...  The FCC rules are here: https://www.fcc.gov/sites/defa...  and some guidance from the FTC is here: https://www.ftc.gov/tips-advic...

Simple solution - DON'T.

@Cordell Huebsch Most laundromats do pretty well, but many operators don't report all of the cash.  Just check to see if that's the reason they don't look good on paper.  It might be a dog, but then again, it might be a goldmine.

Fun fact: The IRS has recently gone after laundromat owners by getting a subpoena for their water bills from the municipality.  Once they see the amount of water used, they calculate the number of loads run and the resulting income. 

You can guess the result. It all comes out in the wash.  (Sorry)

@Jacob Beg This is one of the hazards of dealing with wholesalers, who in reality are just unlicensed real estate brokers operating illegally.

Wholesalers in almost every case have bamboozled the property owner into thinking that THEY are going to buy the property (they're not).  They are neither capable nor willing and are hoping to find a sucker to pay more than they have the property under contract for.  That's the wholesaler's stock in trade.

Wholesalers are almost exclusively untrustworthy.  Relying on anything they say is hazardous to your financial well being.

Their supposed "huge list" is modern day mythology.  It is, to put it bluntly, a pile of crap.  At best, it's a list of wanna-be "investors" that together couldn't finance an ice cream cone.

Steer clear of these slimy liars and you'll be a lot further ahead in your investing.

@Alon D. This is really variable. When I was licensed in Massachusetts it generally varied by town. In some, the landlord paid both sides with one month's rent, split 50/50 to both agents. Like any MLS listing, the terms had to be plainly disclosed on MLS as either a percentage of a month's rent or a fixed dollar amount.

In other towns the landlord paid 1/2 month to his agent and nothing to the renter's agent.  The renter's agent would collect 1/2 month (or whatever else was agreed upon) from the renter.

When I moved to Maine, I found that rentals aren't listed on MLS and we never even dealt with them.

However, unless you have signed something that says that you owe the renter's agent a commission, you owe that agent nothing.  Check the listing agreement with your agent to see if there's anything in there about commission, but from the sounds of it, you should tell the tenant's agent to collect his commission from the tenant. 

@Account Closed  When I sell a business it's almost always an asset purchase, not a stock purchase.  The main reason for that is latent liability.  That's liability that isn't known at the time of the sale.

For example, you buy the stock of ABC Convenience Store, Inc. (or LLC). A week after you've completed the purchase, you're hit with a lawsuit from someone who claims that they slipped on the ice in your doorway three weeks earlier. You're on the hook for damages.

Had you done an asset purchase, you would refer the plaintiff to the contact for ABC Convenience Store, Inc. 

That's because you didn't buy the company (by buying its stock). Rather, you bought the assets of the company. Real estate, inventory, equipment, goodwill, intellectual property, etc. You are a different legal entity, no matter whether you are operating as a sole proprietor, partner, S-Corp, C-Corp or LLC.

I recently sold an airport operator (FBO).  In that case, a stock purchase made sense because there were several permits from FAA and a very favorable lease with the government entity who leases the land to the FBO.  Doing an asset purchase would cause the buyer to have to re-negotiate the lease, which is a can of worms that is best left unopened.  The stock purchase meant that all of the permits and the lease remained in place.

Another advantage of the asset purchase is that you start a new depreciation schedule for depreciable items.  In a stock purchase you simply inherit the current depreciation schedule.

@Zulu Black  The seller doesn't get to dictate your counsel, especially after the property is under contract.  Nor can the seller "cancel the deal" for any reason other that failure on your part to perform or other contingencies that are listed in the contract.

At this point - assuming that the contract has been fully executed and especially if the EMD has been tendered, the contract is binding. Neither party gets to add or remove terms without mutual agreement.

If it were me, I would share the agent's comments with your counsel and let them take it from there.  For all you know, your attorney might have caught the agent in some bad/illegal /sleazy acts before and the agent still has bad feelings about getting caught, suspended and/or fined.

With a seller like this, be absolutely certain that you hit all of your deadlines and follow the contract to the letter.  She sounds like potential trouble.

Good luck!

@Matt Keller You might want to check with your Broker and with NAR if you're a member. Both will strongly discourage you from going down that path.

Google "TCPA fines" and you'll find out why.  There are articles like this https://topclassactions.com/la... that detail class action lawsuits against Realtors.  This website appears to be by a law firm that is trolling for clients wanting to sue agents.

In order to be in compliance with the TCPA laws, you must first have written permission (opt-in) to call or text and also must not call any number on the Do Not Call list. 

Fines for violations run between $500 and $1,500 PER CALL OR TEXT.

Here's a nice article about a telemarketing company that was fined $225,000,000.00.  Yep - $225 Million dollars.  https://nypost.com/2021/03/18/...

Another helpful article that says Realtors calling FSBOs and expireds should be exempt - but aren't. https://www.realtourlife.com/r...

And another: https://www.oceancitytoday.com...

People have long been irritated by telemarketers and the feds have enacted laws to put a stop to it.  I'll bet you don't like having your phone blown up by telemarketers.  Maybe don't perpetuate the problem.

@Le Jia Don't be surprised if a seller finds a lowball offer insulting.  In fact, be surprised if they don't.

Seller's don't care that you see this as a business deal and that you need to make a profit.  What they care about is selling their property and not getting taken advantage of.

By your own admission, you offered him 65% of the current market value - and you think it needs $60K in renovation without even setting foot inside.

If someone made that offer on my home, I'd tell him to walk west till his hat floats.

@Neel P. A couple of things come to mind - and you need to talk with your attorney as I'm not one.

1. File a Lis Pendens.  That is a public notice that the property is subject to a lawsuit or some other action.  It clouds the title and will stop the sale from proceeding.  I don't know that this is a self-help thing.  You may need your attorney to file it.

2. If your deposit is within the limits of small claims court, file a suit there.  I've had to do it and at least in Massachusetts, it is very much a self-help solution.  You may be able to claim damages from any additional expenses you incurred and you might even have the option of demanding double or treble (triple) damages, depending on your local laws.

3. Have your attorney write that same demand letter to the seller, not his broker.  I don't think the broker is liable for any damages here, unless there's more to the story.

You should also read your contract to see if it has anything to say about the disposition of the EMD in the event of a dispute. There might be language there that will guide you.

Good luck!

@Anthony Green-Parker Top priority should be to get estoppel certificates signed off by the tenants. 

This is written confirmation from them detailing lease terms, monthly rent, security deposits and last month's rent held by the seller.  Amounts held must be turned over to you at closing.