Hello I need help...A couple of months ago I met someone who offered me a "partnership" in flipping homes and I had invested $5000.00 into purchasing a property. The money invested from mine and my wife's accounts were deposited into an "escrow account" that was made by my "partner". We thought since we were doing all money transactions through our bank, Bank of America, our money would be completely safe and protected. Since then there had numerous conversations and paperwork signed for a property that was supposedly purchased. My "partner" said that the property would take no more than 45 days to "turn around" and put back on the market for re-sale. One month later, he tells me that the buyers did not sign off and were not picking up the call. My partner said that it was okay, that he would pay all the fees that was incurred from the purchase, and he would get rid of the property for "no money loss" on mine and my wife's end. We didn't think anything weird since he kept in contact with us and had even come over to our residence a few time to talk business and fill out paperwork. All of a sudden, a month after talks, I noticed he was not picking up his phone nor was he answering my emails. Now we are in a dilemma, in need of money, and have no idea how to go about this scandal.
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Finance, Investments Real Estate Investment Scam
- Thread Starter nadimhuss
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I'm really sorry to hear about your loss. It is a complex situation and we don't have all the essential details.
I'm not sure what your bank, Bank of America, has to do with the transaction. The legal definition of escrow - or in general - just means that a third party will hold the money until both parties agree something should be done with it. If that was Bank of America, then they probably held the money until you told them to use the proceeds so a parcel of real property could be purchased. Their relationship with you ends there.
Now the real problem - the paperwork. Do you even have title to the property? Are you listed on the deed? If you are not, then you have no security for your money at all. I am guessing that you might have some agreement with this "person" who convinced you to invest? I don't know what relationship you have with this person and whether you're even sure of this individual's true identity and whether the agreement was with a corporate entity that was signed by this person. That would make the problem even more complex as to who is legally responsible, at least at the first stage.
But you want to know what to do. It's very difficult without knowing more. First you have to look at the agreement you signed to see if it provides you with any remedies. If you didn't have an attorney review it and this investor provided you with paperwork, chances are you won't have them. Next you want to check who the agreement is with and whether there is a clause that you will have money back. I am guessing there are no guarantees at all since I only see something about a 45 day turnaround to put the property back on the market, not the sale and return of your money with a profit. I'm not sure whether you are legally able to get your money back at this point or your agreement says you're going to have to wait.
Of little consolation, $5,000 is very little money when you talk about real estate and is essentially a small claims case, where you may ultimately need to go if you want "economical" legal self-help. Considering the real estate scams that have been going on, you should be fortunate that your losses are limited to 4 digits. Unless we can see the agreement (we don't need the parties, just the agreement), nobody here can absolutely help you determine your rights in this matter.
I'm not sure what your bank, Bank of America, has to do with the transaction. The legal definition of escrow - or in general - just means that a third party will hold the money until both parties agree something should be done with it. If that was Bank of America, then they probably held the money until you told them to use the proceeds so a parcel of real property could be purchased. Their relationship with you ends there.
Now the real problem - the paperwork. Do you even have title to the property? Are you listed on the deed? If you are not, then you have no security for your money at all. I am guessing that you might have some agreement with this "person" who convinced you to invest? I don't know what relationship you have with this person and whether you're even sure of this individual's true identity and whether the agreement was with a corporate entity that was signed by this person. That would make the problem even more complex as to who is legally responsible, at least at the first stage.
But you want to know what to do. It's very difficult without knowing more. First you have to look at the agreement you signed to see if it provides you with any remedies. If you didn't have an attorney review it and this investor provided you with paperwork, chances are you won't have them. Next you want to check who the agreement is with and whether there is a clause that you will have money back. I am guessing there are no guarantees at all since I only see something about a 45 day turnaround to put the property back on the market, not the sale and return of your money with a profit. I'm not sure whether you are legally able to get your money back at this point or your agreement says you're going to have to wait.
Of little consolation, $5,000 is very little money when you talk about real estate and is essentially a small claims case, where you may ultimately need to go if you want "economical" legal self-help. Considering the real estate scams that have been going on, you should be fortunate that your losses are limited to 4 digits. Unless we can see the agreement (we don't need the parties, just the agreement), nobody here can absolutely help you determine your rights in this matter.
disagreeable
Well-Known Member
Though I am sure it represents a significant sum to you, at least you only lost $5000. These flipping games can backfire and destroy the credit of those simply trying to make an honest dollar. Report the issue to your states Atty. General. Though it is unlikely you will recoup the money, a history of this on the persons part could result in charges.
I forgot to include the state attorney general even though I thought the same - an excellent suggestion. But before that happens, I'd first review my rights and remedies and see where this might go. It's possible that there are a number of others asking "where's my damn money" and this individual needs the time to have the property resold and the money distributed. Hopefully this isn't a case of fraud, just a case of very poor management of expectations and too much salesmanship.
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