He Thought He could Sell Anything

I’ve sold some houses that would make a rat puke. Everybody said they should be tore down. So when I found this junker and got it on contract for $3,000 I was sure I could make a fast 5-10K But Holy Moses, after I find a buyer for $12K and start escrow we find out it has some serious code violations, the city even charged a few grand to plywood the house, and these fines had been accruing for years with tons of penalties.
Then we find out there are also some old liens from family members that were never repaid but the lien holders had died years ago.
The really crazy part is a lady had died in a fire in the back room when she fell asleep while smoking a cigg. One of my cash buyers had failed to nail the plywood securely as he left and a neighbor in a loud screeching voice called me and told me I better get my blankity blank butt over their to nail that plywood on. I told her I lived 2 hrs away. I asked nicely if she cud just put a few nails in it. She screamed that she was disabled. I then asked, how is it bothering you if the plywood is not secure, she screamed the drug addicts will go in there and I’m calling the law. I wonder if she was afraid of the ghosts.
I called my cash buyer and he said he wud go back over and put a few more nails in it.
I called the city and they wer unwilling to negotiate the fines. The Title company had found an insurance company to guarantee the old liens but the sellers had some bad credit. I checked with my RE Attorney to do a quiet title and that was gonna cost too much.
I had expended too much time and energy on this crap hole. Finally I just gave up.

Knowing when to cut your losses is part of the business, Thanks for sharing!

I think most of the people don’t have awareness about rules and regulation and they loss their business as well as caught under any serious legal action.So that’s why you need a experienced person who know about all these legal issues and know how to deal with these issues.

This experience reminded me of the old adage “If it looks too good to be true - it usually is.” With quick money comes the potential for a quick migraine. Even if a property is dirt cheap and a flip buyer is standing ready, an investor should always complete a full due diligence. One poor lemon investment can easily reach out and steal the profit from several past or future deals. I guess this is just part of the game.

I do appreciate you sharing these stories, Randoskie. I find myself actually reading your posts. You’re a good storyteller and everybody can share the experience. Thanks!