Investor stuck with HOUSE, what to do NOW??

I recently came across this investor who bought a house on 4/12/2005. He was suppose to get money back for buying the house from the seller. The next mourning when they went ot pick up the checks from the attorney’s office, the seller had two security guards with her and walked off with the money.

Now the buyer (the investor) is stuck with a house that needs about 7,000 to 10,000 in work. He does not know what to do with the house now.

He was suppose to get 45,000 for buying the house (retail) and then using that money to fix the house and sub2 the house to a group of investors that specialize in sub2 deals. Now that group of investors will not work with him because he was suppose to give them 10% of the purchase (15,000) cash after he bought the house BUT the seller walked off with the ALL the money.

He is willing to pay me if I can give him some “knowledgable” advice on this matter.


Was the cash back deal in writing? If not, it will be very hard to enforce anything.

If it was in writing, threaten court action, and sue her!

But since she walked away from the deal with the money, I’m sure it wasn’t in writing, otherwise the check would have been made out to the buyer.

Good Luck!


What do you think the buyer should do now?

I was told that he could owner finance or lease/option the house to a handyman or contractor. Let them do the repairs and either live in it or “sub” lease the house to a tenant/buyer and have them put down a deposit larger than what they put into for the repairs.

What would you suggest Kirk??

And again thanks for responding.

Depending on the seller. who walked off with $45k of the buyer’s money… The buyer doesn’t have a leg to stand on if it wasn’t in writing somewhere…

The buyer must go ahead with the intended plans, at a loss, and chalk to whole thing up to experience, if they can’t get the money back from the seller.

Cons work both ways… Get it in writing!

Good Luck!