All Forum Posts by: Moses Brach

Hi there, my business partner and I own a real estate investment company in Charleston SC called KingWood Capital. There may be an opportunity for you to work with us and learn. You can PM me for further details  

You can also follow us on Instagram at @kingwoodcapital

@Oleg Shalumov Hi Oleg, can you please DM me? We may be able to help each other out.

@Chuks Erinne - The fee was paid on the same day the contract was signed. From what I understand, the seller bought this home from another party through seller financing a while back and never executed any documents that proved that the sale actually happened, at least not as far as county and city records are concerned. From what I‘ve heard, the seller is actually a standup guy, but the whIolesaler Is a liar and a theif. He actually kept on asking me to wire him another $9K before we close the deal because otherwise, he will sell It to someone else.

Originally posted by @Jay Hinrichs:

Originally posted by @Moses Brach:

@Jay Hinrichs  I actually did already pay the $5K. I am at least going to try to recover it, but I will limit the amount of effort as I do have other things going on.

I would go to the police department in that city were he is at.. that's just grand theft. 

 I am seriously considering it.

Originally posted by @Joe Splitrock:

@Moses Brach one of two things happened:

1. He knew the seller didn't have rights to sell the property.

2. He found out through the process trying to close the seller had no rights to the property.

In either situation, the contract is invalidated by the fact you can't assign a contract to purchase something if the owner is not involved. The difference is if he was aware, then it is fraud and he can be criminally prosecuted.

I would file a criminal complaint, so it can be investigated. If he tried to pursue you in court for the money, having proactively gone after him criminally would only help your case. It will also distract him from civil proceedings, because his time and money will be spent on criminal defense.

Don't get hung up too much on what the contract says. Contracts are regularly invalidated by the court when they contain illegal provisions. I always love it when a wholesaler or even landlord says, but my contact says.. That assumes the contract is legal and enforceable.

 Joe, what you are saying makes a lot of sense. I have given him until the 12th to return the money. If I don't get it by then I will at least threaten him with criminal charges, and if he doesn't want to avoid that, I will actually pursue it.

@Braden C. The agreement simply says "nonrefundable" with no other conditions. I have reached out to him to give him a chance to return the money, but if he does not, I will take the appropriate action, at least to protect others.

@Charlie MacPherson - Thank you Charlie. I will look into that. I am pretty sure that the contract in his possession was invalid as the supposed seller to did not hold title to the property.

@Kyle J. Thank you for the tip, too bad that I learned the hard way, but I will echo what @Carl Fischer said: Real life experiences, to me, qualifies as schooling and its financial losses as tuition.

@Jay Hinrichs  I actually did already pay the $5K. I am at least going to try to recover it, but I will limit the amount of effort as I do have other things going on.

I need advice on my recent trouble I’m having with a wholesaler. As I am new to REI, I moved quickly on what seemed to be a good deal in Ladson, SC, that was being marketed by a wholesaler who, over the phone, seemed like a great guy. It turns out that he’s anything but that. As it turns out, the seller of the home never actually held a title to this home, which basically means that this wholesaler has no house to sell. It seems like he was aware of it, but of course did not disclose any of that, because why be honest, right? On the assignment contract that I signed, which I sadly did not fully understand that ramifications of, I committed to a $5K non-refundable assignment fee. My first thought was that I can just kiss it good bye, but then I started thinking about the fact the he had nothing to sell, and it’s potentially just fraud. I’m wondering if I would just loose way more money assuming fees, my time, etc, if I have to start going through the judicial process. Any advice from the community would be highly appreciated!!