A Never Ending Saga of BS

[Elizabeth S.]

Hey all,

I need to vent this story. I feel so burned by REI right now I just can't wait for this fiasco to be over with. This is what's going on:

April 2017

I was living with my ex-boyfriend in Queens, NY and looking for a new place. Rent sucks, I have a lot of savings... so why not buy? I came across an awesome-looking fixer upper in a very solid neighborhood right off the train and near a bunch of shopping, etc.  It is a 500 square foot studio in a co-op selling for $145k. I went and looked at it and it needed a complete renovation. Rents in the building were going for $1.5-$1.7k so I knew it was a good deal even if I sank in $20k to fix it. The monthly charges were a low $380. I only needed to live there for a year and then I could rent the place out (board rules). 

May 2017

I make an offer for $135k cash and it's accepted. I move to a tiny, tiny studio way out by LaGuardia airport that was super cheap. I figured I would only need this crash pad for a couple months while I close and renovate. 

June 2017

Contract is signed which required a $13.5k contract deposit (10% of total value). 

July 2017

I'm sent the application packet which is extremely lengthy in requirements and background info, etc. 

August 2017

I submit my application with several checks amounting to maybe $1k. 

September - October 2017

No word or much of an update. I'm starting to notice my lawyer and seller's lawyer are not very motivated to sell. I'm getting a little annoyed because I hate where I live (too far from city) and want to get this renovation started asap so I can move in and begin my year until I can rent it out. 

November 2017

Interview with board! This is exciting because this is the final step until a closing date can be scheduled. They are very nice and the building is relaxed and I'm happy. 

December 2017

No word or update on why my closing has not been scheduled. My lawyer is blaming the seller's lawyer. 

January 2018

Because it's an estate sale, my lawyer explains that the seller's lawyer needs to get a judge's approval to sell the unit. The judge sends an appraiser, the seller's lawyer files an order, etc. 

February 2018

A hearing is scheduled with the judge and the seller's lawyer and the guardian, etc. The judge approves the sale but won't sign the Order until the seller's lawyer gets a bond. My lawyer says getting a bond will take a day or two. I hear nothing. I decide this isn't worth it. These guys are just ****ing with me and I need to move on with my life. I tell my lawyer I no longer want the apartment. 

March 2018

My lawyer says that I'm under contract to buy the place and can't just change my mind. He filed a motion which sets the closing date at March 15. My lawyer says I need to show up with all the checks prepared as if I am going to close. He says it is unlikely the seller will show up. He will document our appearance and then can file with the judge that we want our $13.5k check back and the deal is dead. If the seller DOES show up, then I will be obligated to buy the apartment. I'm not really happy about this at all. I honestly am just over the whole thing and want to move to Brooklyn. If the seller does NOT show up, my lawyer said he may not just send back the check. So then he said I will have to sue the seller in order to get my check back. I'm not happy about this either. I have no desire to enter a lawsuit. 

Isn't this fun???? 

[Alexander Felice]

You're going to need a LOT more tenacity in these kinds of instances if you want to be successful in RE.

absolutely 10 months is enough to frustrate anyone, but you can't give up halfway through, there is no career in bailing on deal acquisition. I hope you can get out of the agreement if that's what you want, but don't think the next deal will be easier. You said this was an estate sale, well creative deals take creativity.

Certainly we all need to vent sometimes ;) I don't mean to negate your struggles, but I hate to see people frustrated with what is a fairly common event in real estate.

If it's a good deal, see it through. Remember, the next deal might be even more difficult than this one ;)