All Forum Posts by: Jay L.

@Bob Okenwa agreed. My main concern is timing, as per my reply just before this one.

@Jay Hinrichs I’ll look into that. All this happened less than 2 days ago and everything subsequent to the contract was said over the phone. We’ve got no real evidence he wants to back out so what if we move on to the next buyer (who is still waiting) and then the original guy magically turns around and says WE are in breach? Will “The agent called and told us to forget it” hold up?

In other news, the “PRO” icon by your avatar just reminded me I let my pro membership lapse. Gotta add that to todays’ “To Do” list. Lol

So here it is: My partner and I put a property up for sale (SFH flip). A buyer's agent submitted a written cash offer. No contingencies, no inspection, etc. Complete "as is" purchase. We countered and it was accepted. They provided proof of funds and sent us back the contract, signed and all. Written into the contract was that the money would be paid no later than 48 hours after the signed date.

Written into his offer was that we had to accept by 5pm. We met that deadline and gave them until 9am to accept our counter, and they met that deadline. Thus, the property was listed as “Pending.”

However, a few hours after submitting the contract, the agent contacts our agent to say the buyer was not going to go through with the deal. He claims that he and his client had a “falling out” and therefore they weren’t going to go forward with closing. He also went on with some story about the guy wanting to buy the house for someone and possibly them falling out or whatever; I couldn’t care less about that.

We have several slightly higher offers (though they are conventional and FHA offers) but now we're locked in a contract with this guy, and the last thing his agent reached out to us to say was basically his client definitely won't be showing up to the closing. Now he (the buyer's agent) is not communicating at all.

Mind you, he made a lowball offer, then a best and highest. Once we accepted the higher offer (again, all in writing), he tried to change his mind to a little under that, his agent saying he felt he was overpaying. Before we even had a chance to dispute anything, the agent came back and said he’d go through with the deal....only to now say he’s not paying after sending in a signed contract.

This is certainly a first for me. What do you do if you’ve got a signed contract, no one’s showing up to close, and ignoring all correspondence? Our realtor is suggesting we “move on to the next buyer” but 1) We’re technically under contract now and 2) Clearly cash beats waiting out the conventional offer, which the buyer says she intends to close within 30 days if she can. Is the cost of pursuing this legally even worth it?

Thanks in advance.

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Originally posted by @George Blower:

@Jay L.

Please message me

@George Blower I noticed you're in Southfield. Are there any REI-friendly attorneys and/or CPAs you can recommend? I'm really in need of some professionals to guide me in the areas of finances/LLC structure/asset protection etc.

I live in GA but invest in MI. Last trip I ended up in a Southfield (somewhere I had never previously heard of) hotel so that location name practically lit up on my screen when I saw your comment.

Just came to say that my partner and I are getting a kick out of reading @James Wise's replies.  

@Kenyetta Overton I’m with the guy who said it starts with education. You began by saying you’ve studied a bunch and checked out a bunch of programs, yet you haven’t at least come across any literature related to investing with little or no money (not that all these books are created equal) and you didn’t know what house hacking was? It just sounds like to me that you haven’t been putting your money and attention in the right places when it comes to educating yourself. Someone else already mentioned Brandon Turner’s guide; so that’s a good start. To me, the sign of good information is that it’ll leave you wanting to know more about specific things you’ve read. If you learn 10 things then you’ll end up wanting to maybe look into 4 of those even deeper, which will open you up to more education...and down the rabbit hole of infl you go. Don’t bother with any book, program, website or person that claims to be a one-stop shop with all the answers. Oh and guard your credit with your life! If you’re starting with little to no cash then having good credit will go a long way in getting certain types of financing. I started out with barely $5000 and all it took was a conversation with a lender to tell me where I needed to be in order to get the funding I needed, and I worked towards that. Don’t make getting over the first hurdle seem tougher than it really is! That’s the biggest way people psyche themselves out before they ever start. Best wishes to you!

@Wayne Brooks @Richard Sherman it all makes sense now. I appreciate you both!

@Richard Sherman she emailed me back not too long ago and I’m quoting her reply: “Good morning. On the Bill of Sale form the $1.00 is a default amount, however, the items on the Bill of Sale are included in the sales price of the home. It is stating that they are not being sold separately from the sale of the home.”

@Richard Sherman That sounds about right. I don’t know what they’re trying to make it appear as, because the right amount is on the settlement statement. I’ll be calling the title company Monday morning to get to the bottom of it all.