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  #1  
Old 05-02-2006, 09:59 PM
joiness19
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Default Need Advice ASAP

I have been doing this for almost a year and a half now. I started out really well and bought about 6 properties in my first year. I had so many headaches rehabbing 3 of the houses with the contractor I was using so I started wholesaling until the houses were finished. My partner and I put 5 properties under contract in January and had 5 buyers who were working with 1 broker that came highly recommended. The broker told us that she knew of a hard money lender for all of the buyers. Needless to say she didn't know her brokers program after having pulled all buyers credit and having them to order appraisals we came to find out that in order to go through the lender (investwell) they had to have an established LLC in the state of Ohio (all the properties were in Ohio) which they didn't. The whole ordeal lasted for almost a month and then everything fell through. One particular seller was in foreclosure and when everything fell apart she had a couple days left. Since one of the buyers had ordered an appraisal I was able to get a copy of it and use it to get a private loan to buy the house and bail the lady out of foreclosure. We bought it for 18,000 the subject to appraisal is $79,000. We were recommended a contractor by another investor to do the rehab for $9,500. Well, this contractor did the first portion of the job - sent us pictures of the work done, I had someone go out to make sure the first portion was completed, and then we sent him the second draw. Since then he refuses to answer our calls, he took the house off of lock box, still has the key, and has gone over the amount of time allotted to finish the house. We sent him $8,000 so far. What can we do? We owe $18,000 to the lender plus interest. We had a buyer for the property after it was done being rehabbed but we can't sell it to them now because the contractor has skipped out. I live in CA and this in Ohio. What in the world can we do? I do have another rental property I can sell off to give the lender their money but so far we haven't
been able to sell it. Is there any advice on this situation? Anyone gone through this before?
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  #2  
Old 05-21-2006, 07:09 PM
chrisblanks
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Question question

Quote:
Originally Posted by joiness19
I have been doing this for almost a year and a half now. I started out really well and bought about 6 properties in my first year. I had so many headaches rehabbing 3 of the houses with the contractor I was using so I started wholesaling until the houses were finished. My partner and I put 5 properties under contract in January and had 5 buyers who were working with 1 broker that came highly recommended. The broker told us that she knew of a hard money lender for all of the buyers. Needless to say she didn't know her brokers program after having pulled all buyers credit and having them to order appraisals we came to find out that in order to go through the lender (investwell) they had to have an established LLC in the state of Ohio (all the properties were in Ohio) which they didn't. The whole ordeal lasted for almost a month and then everything fell through. One particular seller was in foreclosure and when everything fell apart she had a couple days left. Since one of the buyers had ordered an appraisal I was able to get a copy of it and use it to get a private loan to buy the house and bail the lady out of foreclosure. We bought it for 18,000 the subject to appraisal is $79,000. We were recommended a contractor by another investor to do the rehab for $9,500. Well, this contractor did the first portion of the job - sent us pictures of the work done, I had someone go out to make sure the first portion was completed, and then we sent him the second draw. Since then he refuses to answer our calls, he took the house off of lock box, still has the key, and has gone over the amount of time allotted to finish the house. We sent him $8,000 so far. What can we do? We owe $18,000 to the lender plus interest. We had a buyer for the property after it was done being rehabbed but we can't sell it to them now because the contractor has skipped out. I live in CA and this in Ohio. What in the world can we do? I do have another rental property I can sell off to give the lender their money but so far we haven't
been able to sell it. Is there any advice on this situation? Anyone gone through this before?

Hello if your still looking to sell your property off I may be able to help you get it sold through my company. We have a property sell product that may help you. Visit our site for more information.
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  #3  
Old 09-04-2006, 04:40 AM
r8rpwr
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Is there any update on this situation? Have you been able to sell this property, or another one to cover your payments?
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  #4  
Old 09-18-2006, 04:35 PM
Ole_chilli
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well you can start court proceeding s .. but looks like you learned a hard lesson never become and out of state land lord .. murphy will take over everytime ..especially when people know that youaren't goin gto travel from california to ohio
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  #5  
Old 09-19-2006, 08:52 AM
barbiedoll1973_tn
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Quote:
Originally Posted by Ole_chilli
well you can start court proceeding s .. but looks like you learned a hard lesson never become and out of state land lord .. murphy will take over everytime ..especially when people know that youaren't goin gto travel from california to ohio




I hope that things gets better.
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  #6  
Old 09-19-2006, 11:17 AM
Ole_chilli
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Quote:
Originally Posted by barbiedoll1973_tn
I hope that things gets better.


barbie quoted teh wrong person
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  #7  
Old 09-19-2006, 11:38 AM
barbiedoll1973_tn
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Quote:
Originally Posted by Ole_chilli
barbie quoted teh wrong person



O your right I did see I told you that I really need some help you see I need it in lots of areas.
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  #8  
Old 09-19-2006, 04:01 PM
Ole_chilli
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Quote:
Originally Posted by barbiedoll1973_tn
O your right I did see I told you that I really need some help you see I need it in lots of areas.


don't be ashamed I need help with my spelling Keep that to yourself
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  #9  
Old 09-20-2006, 06:28 PM
breedsbuilding
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I live in ohio and am a real estate agent as well as do some contract work in the dayton area. If you are in my area I would be glad to look at your situation and see if there is any way i can help.
you can go to natebreeding.com for my contact info
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  #10  
Old 03-07-2007, 02:23 PM
zella
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Is there an Update with this and I don't see why you could not go after the contractor who has not complete the job
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