Posted by Tom on June 26, 2001 at 24:24:08:
In Real Estate, it almost always pays to get the property making money first, then collect the bills and go after the culpret.
In deep shiii stuff - Posted by Detroitblue
Posted by Detroitblue on June 25, 2001 at 21:06:39:
I am a new investor and I have got caught up in a really tuff jam. I was part of an investment group working with a local guy that was/ running the Ron Legrand style of realestate purchasing. I was hoping to learn first hand from him how to do everthing for myself. In the mean time I was purchasing properties through the group. He would run the numbers and do the inspections and basically put his stamp on the properties as being a good deal and then I would come with my good credit and purchase it and then they would even find me a renter and off I go.
Well this last deal went really bad from the start. We had to take the old tenants to court to get them to move and the whole nine. In the mean time I found out after the deals was done that there is a major plumbing problem. Roots have grown up and broken the pipes. Now I have just gotton a call from the neighbor saying he wants to sue us for his plumbing problems. I have only owned the property less then sixty days.
Oh and as far as the investment guy goes his name is on nothing and we have since parted ways
Is there any thing that I can do. Can I sue. Can I get my deal reversed or anything like that?
Re: In deep stuffing - Posted by Bill Gatten
Posted by Bill Gatten on June 25, 2001 at 22:17:45:
This kills me. We hear this all the time. “Use my brains and your credit and together we’ll set the world on fire.”
The truly valuable part of your investment with this gum ball was the lesson…not much help, I know, but you’ll never “partner” again with anyone who has nothing to lose I’ll bet (…just a guess).
If you are the owner of the property, I’m sure you have recourse against the seller if the plumbing problem was not disclosed at the time of transfer. I’d find out from the angry neighbor how long the problem has existed, and if it predates the sale (which I’m betting it does), I’d go after Mr. Seller with a hot poker.
Next, if you have the stamina, and if it?s really worth it to your in terms of time and effort, you can probably go after Mr. Investment Counselor with another hot poker. You must have some paperwork: documents, ads, agreement something that would implicate him.
To be honest though, if it were me I’d probably just fix everything and sue the seller in small claims court (assuming it’s under $5K) and avoid the stress that chasing another lawsuit always brings.
Bill Gatten
Re: In deep stuffing - Posted by Mark (SDCA)
Posted by Mark (SDCA) on June 26, 2001 at 11:16:32:
Agree with going after the seller, especially if it was an owner occupied property. Then he really should have known.
Depending on how it was set up, you may not have as good luck with the Investment Counselor. My experience is that these deals are usually set up as a combo real estate brokerage/property management company. Where is their liability here? They are showing you properties which you may wish to purchase after due dilligence. If they are smart at all, the buyer will have signed the typical release form advising him to get a professional inspection etc, etc.
Cheers,
Mark
Re: In deep stuffing - Posted by Detroitblue
Posted by Detroitblue on June 25, 2001 at 23:28:22:
Wow I am starting to feel better already. Thanks Bill you are a life saver. And my wife thanks you too.
I have a couple follow up questions. Is time of the essence? should I collect my documentation in the form of estimates and then take quick action or should I wait till I have the repairs done. And should I approach the seller first for a resolution or just see him in court?
It seems more prudent to strike while the iron is hot since I only purchased the property in late April.
Re: In deep stew - Posted by Bill Gatten
Posted by Bill Gatten on June 26, 2001 at 17:19:30:
Go after the seller right away. But contact him first and tell him of your problem. He’ll probably want to settle out of court. Then go after your partner if you have to…however, do note that your recovery will like be limited to your actual loss…which may be zero after the plumbing problem is fixed. Getting punitive damags when there has been no loss is more than likely not going to happen.
Bill Gatten
Don’t wait too long… - Posted by Ben (NJ)
Posted by Ben (NJ) on June 26, 2001 at 07:08:16:
due to statutes of limitations. If you miss a certain deadline you may lose your right to sue. Check into it with a local attorney.