spain Posted December 8, 2006 Share Posted December 8, 2006 Here is one that may be a little different. Currently, Nashville is having an urban construction boom. Specifically, there are a number of condos being built downtown. A buddy of mine invited me to buy one with him, pre-construction, and either flip it when its completed in Q1 2008, or rent it out. Another friend, who is actually a friend of my friend, but someone I know as well, found the place. He put a deposit down on it and then asked my friend Tom and me if we wanted to split it with him. I tell him I am interested so they both come over and pitch it to me. This 2nd dude is a pyschologist, but he dabbles in commericial real estate a little on the side. He comes over and tells me the deal. We will all be in for 1/3 interest. We wont close on the property until April 2008. If we want to back out at any time, we can and we will only lose the earnest money we put up. And it is cheap to get in. We all I agree, and I write this dude a check. He tells me that he will write one big check to the condo sellers. So, we go over to sign the contract and I discover that this guy had told me the earnest money was 3 times higher than it actually was. In other words, instead of it being $30k earnest money, it was only $10k. He had taken a check from me for $10k and another check for $10k from my buddy. I immediately asked him where was the rest of my $$? He acted really wierd and said we would talk later. He never brings it back up, so I call him and tell him that I want a check for the rest of my money. His "story" is that since he found the deal, he gets a finders fee of the interest that he makes off my money until closing. I tell him thats fine, deduct the $350 off my balance and cut me a check. But he doesnt want to do that. He wants to use that extra money in another deal because he is apparently having cash flow problems(I am guessing here). He never mentioned any of this to me before although he says he did. And he tells me I can get out of the deal now. I tell him that I dont want out of the deal, I just want my part of the $$ back. He plays a few pychology games with me that I see right through, and I dont budge. He keeps talking about a couple other deals, irrelevant to this one, and how I am not experienced with this sort of thing. I keep telling him I dont care about any other deals, I just know what he told me and it doesnt sound anything like what he is telling me now. So, he says he will give me my full $10k back this weekend if I want out. My spider senses are tingling like a mofo. Something aint right here at all. But I would still like to buy into the condo. I think I am backing out, as is my buddy, and go find a condo of our own where we dont need a "friend" to use our money on the float for a year and a half. Am I wrong? Quote Link to comment Share on other sites More sharing options...
Chief Dick Posted December 8, 2006 Share Posted December 8, 2006 Here is one that may be a little different. Currently, Nashville is having an urban construction boom. Specifically, there are a number of condos being built downtown. A buddy of mine invited me to buy one with him, pre-construction, and either flip it when its completed in Q1 2008, or rent it out. Another friend, who is actually a friend of my friend, but someone I know as well, found the place. He put a deposit down on it and then asked my friend Tom and me if we wanted to split it with him. I tell him I am interested so they both come over and pitch it to me. This 2nd dude is a pyschologist, but he dabbles in commericial real estate a little on the side. He comes over and tells me the deal. We will all be in for 1/3 interest. We wont close on the property until April 2008. If we want to back out at any time, we can and we will only lose the earnest money we put up. And it is cheap to get in. We all I agree, and I write this dude a check. He tells me that he will write one big check to the condo sellers. So, we go over to sign the contract and I discover that this guy had told me the earnest money was 3 times higher than it actually was. In other words, instead of it being $30k earnest money, it was only $10k. He had taken a check from me for $10k and another check for $10k from my buddy. I immediately asked him where was the rest of my $$? He acted really wierd and said we would talk later. He never brings it back up, so I call him and tell him that I want a check for the rest of my money. His "story" is that since he found the deal, he gets a finders fee of the interest that he makes off my money until closing. I tell him thats fine, deduct the $350 off my balance and cut me a check. But he doesnt want to do that. He wants to use that extra money in another deal because he is apparently having cash flow problems(I am guessing here). He never mentioned any of this to me before although he says he did. And he tells me I can get out of the deal now. I tell him that I dont want out of the deal, I just want my part of the $$ back. He plays a few pychology games with me that I see right through, and I dont budge. He keeps talking about a couple other deals, irrelevant to this one, and how I am not experienced with this sort of thing. I keep telling him I dont care about any other deals, I just know what he told me and it doesnt sound anything like what he is telling me now. So, he says he will give me my full $10k back this weekend if I want out. My spider senses are tingling like a mofo. Something aint right here at all. But I would still like to buy into the condo. I think I am backing out, as is my buddy, and go find a condo of our own where we dont need a "friend" to use our money on the float for a year and a half. Am I wrong? Get your money. NOW. Quote Link to comment Share on other sites More sharing options...
wildcat2334 Posted December 8, 2006 Share Posted December 8, 2006 Yea F that- Get out now and go 1/2 with the guy you know and trust on another condo. Fishy from the get go is not good. Sounds like there are alot being built- find another one. Quote Link to comment Share on other sites More sharing options...
spain Posted December 8, 2006 Author Share Posted December 8, 2006 Get your money. NOW. Me and my friend Tom are going to dinner to discuss this thing TONIGHT. One caveat: This dude actually lost his pyschologist license for some reason. Something to do with the fact that you have to "apprentice" under a licensed pyshologist for a certain amount of time before you can be licensed and he didnt do that. Now, he is still "coaching" patients which sounds exactly like being a pyschologist to me. Quote Link to comment Share on other sites More sharing options...
cliaz Posted December 8, 2006 Share Posted December 8, 2006 Yea Spain I'd get it back ASAP. I never invest money with friends. If a friend is willing to go into an investment with you and then pulls this stuff that means he is sneaky, shadey and will screw you over in a heart beat. He is prolly roping the two of you in and using your money to make him more without telling you (but he get busted). Get your money back and instead send it to me for the cruise. Quote Link to comment Share on other sites More sharing options...
Youre Going Down Posted December 8, 2006 Share Posted December 8, 2006 Get out and do it with only your buddy(you know what I mean). Quote Link to comment Share on other sites More sharing options...
Chief Dick Posted December 8, 2006 Share Posted December 8, 2006 Get out and do it with only your buddy(you know what I mean). spain knows what you mean. But he needs advice about his money. Quote Link to comment Share on other sites More sharing options...
Skippy Posted December 8, 2006 Share Posted December 8, 2006 Always go with your spider senses. If it is the way you took the time to write it up there, something is not right. Quote Link to comment Share on other sites More sharing options...
yo mama Posted December 8, 2006 Share Posted December 8, 2006 I'd venture you say the friend of a friend isn't looking to rip you off, per se. He's probably just leveraging off your money into another deal, which is still f'd up. Did you have a written agreement between the three of you? I'd just put it to him this way: either give my $6666.66 back, or give me my $10,000 back. Either way, you're picking it up this weekend or you're going to call the cops. Your other friend ought to do the same. Then you two contact the condo seller by yourselves and cut this third clown out. Quote Link to comment Share on other sites More sharing options...
darin3 Posted December 8, 2006 Share Posted December 8, 2006 Not really a property investment question, IMO. Get your money back ASAP. Quote Link to comment Share on other sites More sharing options...
geeteebee Posted December 9, 2006 Share Posted December 9, 2006 Get your money out and give it to Muck to invest into a high end timeshare deal. Quote Link to comment Share on other sites More sharing options...
spain Posted December 9, 2006 Author Share Posted December 9, 2006 I'd venture you say the friend of a friend isn't looking to rip you off, per se. He's probably just leveraging off your money into another deal, which is still f'd up. Did you have a written agreement between the three of you? I'd just put it to him this way: either give my $6666.66 back, or give me my $10,000 back. Either way, you're picking it up this weekend or you're going to call the cops. Your other friend ought to do the same. Then you two contact the condo seller by yourselves and cut this third clown out. Exactly. He wants to use our money to put into another deal until we close on this one in 18 months. He never, ever, mentioned any of that to me before. And a few other things he has told me are not ringing true now. So, to be honest, I dont want to be involved at all with this dude. I am going to ask for all of my money back and see if my friend, Tom, wants to go get one by ourselves. We dont need this turd to close a dam real estate deal. Quote Link to comment Share on other sites More sharing options...
Azazello1313 Posted December 9, 2006 Share Posted December 9, 2006 I'd venture you say the friend of a friend isn't looking to rip you off, per se. He's probably just leveraging off your money into another deal, which is still f'd up. Did you have a written agreement between the three of you? I'd just put it to him this way: either give my $6666.66 back, or give me my $10,000 back. Either way, you're picking it up this weekend or you're going to call the cops. Your other friend ought to do the same. Then you two contact the condo seller by yourselves and cut this third clown out. yeah, what he said. except he may not be "leveraging another deal", he maybe bet a little too much on the colts to cover last week and he's trying to get guido off his back. well there are hundreds of different scenarios but if he's pulling this chit with your money one way or another he's probably in some sort of tight spot. i hope you get your $$ back. Quote Link to comment Share on other sites More sharing options...
wiegie Posted December 9, 2006 Share Posted December 9, 2006 let me put into language you can understand: not getting your money back now would be dumber than buying whole-life life insurance Quote Link to comment Share on other sites More sharing options...
yo mama Posted December 9, 2006 Share Posted December 9, 2006 (edited) Exactly. He wants to use our money to put into another deal until we close on this one in 18 months. He never, ever, mentioned any of that to me before. And a few other things he has told me are not ringing true now. So, to be honest, I dont want to be involved at all with this dude. I am going to ask for all of my money back and see if my friend, Tom, wants to go get one by ourselves. We dont need this turd to close a dam real estate deal. My only concern at this point is that this turd may have tied your money up into a separate deal that he can't get it out of quickly (or simply spent it, as Az alluded to). I know he said he'd give you your $10k back if you wanted it. But you're better off acting sooner than later. I'd get off line and get in touch with the guy right now, if it were me. (Sack full of door knobs, optional). Edited December 9, 2006 by yo mama Quote Link to comment Share on other sites More sharing options...
Chief Dick Posted December 9, 2006 Share Posted December 9, 2006 let me put into language you can understand: not getting your money back now would be dumber than buying whole-life life insurance Quote Link to comment Share on other sites More sharing options...
Big John Posted December 9, 2006 Share Posted December 9, 2006 Sounds like a snow job going on. get your money brack ASAP. Quote Link to comment Share on other sites More sharing options...
muck Posted December 9, 2006 Share Posted December 9, 2006 In case it's not obvious, you should get your money back. BTW, what does your wife say? What does your other buddy say that got you in this deal to begin with? Quote Link to comment Share on other sites More sharing options...
Controller Posted December 9, 2006 Share Posted December 9, 2006 Reading between the lines, it sounds to me like he is bluffing about giving you back all of your money this weekend. I suspect if you elect to go this route, he will do his best to talk you out of it. If you persist, you will probably find out that he is not able to give you your money back. Getting the actual truth from him about why you can't have your money back is going to be very difficult. I hope I'm wrong, and you get your $$ back right away. But I would bet otherwise. The idea of going in with your other friend without the conniver sounds a whole lot better. Quote Link to comment Share on other sites More sharing options...
NSab Posted December 9, 2006 Share Posted December 9, 2006 Your friend is a shady character, he isn't being honest with you guys. Get out of the deal, you can't partner up with a scammer. Quote Link to comment Share on other sites More sharing options...
untateve Posted December 9, 2006 Share Posted December 9, 2006 for the record...I have my license. Quote Link to comment Share on other sites More sharing options...
Chief Dick Posted December 9, 2006 Share Posted December 9, 2006 for the record...I have my license. Your Egg license? Quote Link to comment Share on other sites More sharing options...
yo mama Posted December 9, 2006 Share Posted December 9, 2006 Your Egg license? No, he's just pedigreed. Quote Link to comment Share on other sites More sharing options...
Chief Dick Posted December 9, 2006 Share Posted December 9, 2006 No, he's just pedigreen. Fixed. Quote Link to comment Share on other sites More sharing options...
Azazello1313 Posted December 9, 2006 Share Posted December 9, 2006 hey spain, your "friend" doesn't happen to be chelsea clinton's boyfriend's dad, does he? Quote Link to comment Share on other sites More sharing options...
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