Posted on: 11th May, 2010 08:52 am
During the latter stages of 2008, I contacted my father about real estate opportunities. In late January he informed me that he had the perfect real estate investment property for my situation. He only needed an investor with 18000 dollars and the property had a qualified buyer and would close in "three days".
I asked him how much of a profit I would receive if I were to invest in this property. He is an investor of 30 years and based on his assumption, I would receive a profit of 10-12 thousand dollars. Based on this risk, I agreed to enter this opportunity. I warned my father (subject) on several occasions that this would be finance by a credit card and there is interest associated with credit card loans. He assured me there is nothing to worry about and the transactions was safe and all was needed was an investor. Once the three day period had passed, my father indicated to me that there was a discrepancy with the bank and the closing was at the end of April. He informed me that the appraiser had valued the property at 80000 dollars and closing was assured at the end of April. It is now May 3 2010, 15 months later and I have not received my money. I am thousand of dollars in credit card debt and my credit is at risk. I am seeking compensation of the initial principal and all interests associated with transaction. I would like to know what my options are and whether this has the elements of real estate fraud. Here are a few points.
He neglected to inform me of a third party (Ken Williams)involvement and he was the actual person who had a buyer
He neglected to tell me he never met the buyer
There was no exit strategy and renting was never considered
Also, he neglected to tell that he and this third party were the names on the deed of the investment property
In actuality there was never a buyer and the third party only was interested in renting the property and collecting a source of income.
The third party rented the property to other people who ransacked the property and removed all the plumbing.
The third party has disappeared and there has been no contact for 10 months.
After 13 months he placed a "For Sale sign" on the property
He was recently placed on probation for real estate fraud in October of 2009, after this transaction was initiated
I asked him how much of a profit I would receive if I were to invest in this property. He is an investor of 30 years and based on his assumption, I would receive a profit of 10-12 thousand dollars. Based on this risk, I agreed to enter this opportunity. I warned my father (subject) on several occasions that this would be finance by a credit card and there is interest associated with credit card loans. He assured me there is nothing to worry about and the transactions was safe and all was needed was an investor. Once the three day period had passed, my father indicated to me that there was a discrepancy with the bank and the closing was at the end of April. He informed me that the appraiser had valued the property at 80000 dollars and closing was assured at the end of April. It is now May 3 2010, 15 months later and I have not received my money. I am thousand of dollars in credit card debt and my credit is at risk. I am seeking compensation of the initial principal and all interests associated with transaction. I would like to know what my options are and whether this has the elements of real estate fraud. Here are a few points.
He neglected to inform me of a third party (Ken Williams)involvement and he was the actual person who had a buyer
He neglected to tell me he never met the buyer
There was no exit strategy and renting was never considered
Also, he neglected to tell that he and this third party were the names on the deed of the investment property
In actuality there was never a buyer and the third party only was interested in renting the property and collecting a source of income.
The third party rented the property to other people who ransacked the property and removed all the plumbing.
The third party has disappeared and there has been no contact for 10 months.
After 13 months he placed a "For Sale sign" on the property
He was recently placed on probation for real estate fraud in October of 2009, after this transaction was initiated
Hi dclewis,
I can understand that you are facing a tough situation. This real estate transaction has left you with a huge credit card debt. In my opinion, this situation may be considered as a real estate fraud. However, it would be a better option if you could contact a real estate attorney and he would be able to help you in this matter. He will help you in knowing whether or not the whole situation can be considered as a fraud.
Thanks
I can understand that you are facing a tough situation. This real estate transaction has left you with a huge credit card debt. In my opinion, this situation may be considered as a real estate fraud. However, it would be a better option if you could contact a real estate attorney and he would be able to help you in this matter. He will help you in knowing whether or not the whole situation can be considered as a fraud.
Thanks