I have a couple of scenarios that have occured over the past few years and am curious if anyone thinks I may have cause for some legal suit.
Now some of these may have exceeded some form of statue of limits but I would still prefer an opinion if nothing else to justify myself.
Notice that all deals involve the same Vice President of a local bank.
2009 located a 3 story home with livible basement. Assessed value $150000 asking price $50000. Contacted my banker for a loan of $75000 to include Asking price of $40000 remodel of $35000. Banker was onboard and excited about the project.
Got laid off Banker backed out of the deal. Home sold for $12000, was rehabed and flipped in 35 days for $145000. Estimated profit $98000
2010 located a 1 story 3 bed home HUD home for $12000 with potential rehab cost of $25000.
Banker was excited about the possible deal. Banker refused to return my phone calls, or talk to me when I called. Deal was drug out for 3.5 weeks as another buyer stepped in and purchased the property for $5000, Rehab and flip in 45 days for $65000. Estimated profit $35000
2011 located a 2 story 3 bed home for $15000 potential rehab of $30000. Banker said this looked like the best idea of a property I had located yet. Bank drug thier feet for 4 weeks. Anothe buyer through the same bank made a purchase for $13500 rehabed and flipped in 50 days for $125000 Estimated profit $80000.
In the last 3 years this banker has screwed me out of a potential $213000 naturally if they had just followed through with the first deal or even the second I would have been in a better position for future deals.
wow 22 views and not one response.
Banks don’t close loans all the time.
If you were laid off you were no longer eligible for the loan.
Regarding the other deals, banks can and do take 4-8 weeks to close a loan.
You should seek out a hard money lender who can get you the funds quickly and make your deal happen.
Also, talk to your banker about having a line of credit you can use for these flips.
Banker later openly admitted that he stalled on the deals. He did not think that I was ready to jump into Real Estate.
I closed all of my accounts with his bank.
Move on. Get over it. No recourse.
If you attempt to sue or even just DWELL and RUMINATE on those lost opportunities you are burning up daylight. You are burning up your good energy with negative energy.
We have all lost deals. We have lost deals because we were too timid. We have lost deals because we didn’t have the money. We have lost deals because the timing wasn’t right. We have lost deals because our own personal finances weren’t right. We have lost deals because our family responsibilities at that time were too overwhelming.
Now the good news is JOHN, YOU ARE TERRIFIC AT FINDING GOOD DEALS. This means that you are gonna do it again. This time be ready for it.
Have your personal life in order. Have your personal debts and credit in order. Have a PLAN on how you are going to be able to purchase --savings, line of credit, hard money, personal assets, partner.
Then get out there and execute the good deal. Please let us know how you are going to do this.
It’s tough, but quit whining and get working. You are a definite winner.
You actually have a really good “free” consultant look at your business readiness.
Find out what about you made him think you were not ready to “jump into” real estate. Once you find out, fix it.
I’m not sure where you were going with this. The bank wouldn’t loan you money and you got made about it and cancelled the accounts there and now want to sue? I was with you until the part about recourse.
I once got mad at the bank I used because they wouldn’t give me a loan to buy my grandfather’s town car from him. It was a 1996 town car with 58,000 miles on it and he offered it to me for $5000 because he was getting a new one (and he was trying to help me out). It was eight years old and they said they wouldn’t loan money to buy a car over six years old. I was still in college and newly married and she had just gotten pregnant. I had banked there for 22 years at that point. I closed my checking and savings account and took my $6000 in deposits elsewhere.
We borrowed money from her brother and made payments for a year until I got a job and paid the rest off in a lump sum. I’m still mad about the fact that I had to borrow money from family, but she was in pharmacy school and needed to drive about an hour every day for her residency for a year - and her car had too many miles to do that with a little baby.
That was seven years ago and things sure do look different now!! Kiddo #5 is on the way and we live in a nice house that we got a great deal on and put 20% down for. We have six rentals with good equity in a few of them and are getting ready to build our dream house next year.