Who can I trust?

Not sure if anyone can help me.  I became the money partner in a property purchase in the U.S.  The deal was that I would buy the property plus provide the funds for the rehab.  The property was already pre-sold  I was to receive 17% in 3 months time.  I have a lien over the property and a promissory note from the this guy.  Of course, when the 3 months was up, no money.  I was told that the sale had fallen through but the property was rented and I would receive the rent until it was sold.  Despite receiving a "deposit slip" I received nothing and then the emails stopped with no contact since. 
So if there is anyone on here with a similar story or any americans, what would be the next step and how hard is it from Australia to foreclose if that is what is required?

As a licensed Mortgage Banker in the US… I can tell you in 2 minutes what you have if you care to scan and e mail me your documents.

Mortgage investing in the US is as big a bizzness as buying the asset… Same caveots apply though, no thy people who your doing bizz with,,, check the collateral, check neighborhoods etc.

If we were looking at a fraud scenerio here this is how it would play out.

Nice Spruiker comes to you with what is a really great theme to Ozzies some very very high interest rate that gets you excited… why invest in something for 8 to 10  heck I can get 17% no problem.

This person talks a great rehab and flip game  ( remember I have done well  over 2000 of these loans in the US the exact transaction you did) and i have been fooled more than once as well so don't feel alone.

I do not know the dollar amount your talking about.

but if it was a modest investment 20 to 50k or so.

I suspect the property was probably bought for wholesale,,, and that the Spruiker in this case never did any work… probably pocket half or more of the cash you front originating this Lein over the property and has just gone walkabout never to be heard of again…

Your collateral maybe in one of the not so nice areas of the US in need of a lot of help and or be so far gone as not worth putting any money into trying to foreclose and take the property over…

so thats worse case scenerio.

Best, is you just have a little communication problem… this reputable wholesaler flipper that you lent money to, will be getting to you really soon,, the house did not sell for some reason its fully rehabbed and rented and it will just be days before the rents are put into our account. ( which unless you have an assignement of rents clause in your Deed of trust or Mortgage) he is not obligated to do this.. He is just being the good borrower and offering it.

So probably somewhere in the middle I imagine is the story.

Like I said if you scan and e mail me the Note and Deed of Trust or Mortgage that was recorded over the property I can tell you in 2 minutes what you have and what your next steps would be… Also include the address so I can see where in the US this loan was made and if its in a good enough area that would warrent you spending any money chasing.

If the loan was in a Deed of Trust state its very simple straight forward foreclosure,, Like GA takes 60 days and 1500 buckaroos and you have the property back… New York it can take 3 years and thousands… florida same.

If you can get to the borrower there is also a document called Deed in Lui of Foreclosure if you can get him to sign it and record it your done as well property is back in your name debt is extinguished.  Try not to use a quit claim deed that can cloud the title going forward.

I will leave my e mail below if you wish me to assit you in the basics

[email protected]

Kyler,

give this OZ investor a 411 on the property if you will please.  Klyer is our resident expert on KC, there was another property manager that frequented this site from KC but have not see him post in a long while.

llovehouses,

Kyler can give you a report on your collateral.  If you want to scan and e mail me your doc's I can give you advice on what you have… IE do you have legit documents,,, etc. In addition I will talk to a few of my contacts there in KC and report back

When we see this criminal behavior we are usually looking at  transactions that have little or no supporting documentation, Other than the typical ( I bought a house and never got rent and what do I do)

Be happy to help and give you a quick read on what you have.

[email protected]

quick zillow search  ( and again Zillow is all over the map and this one is not different)

this property sold for 15k..   ones next to it sold for 67k… others for 8k…

so bombed out in need of total rehab value probably 8 to 15k.

after rehab 40 to 50k..

so question is what were you told and how much did you lend on this one.

JLH

A friend of mine, Daimian Patterson, is a trusted property coach. You can simply google him and you’ll
Easily find plenty of research on him and his free e-book. He recently took a trip to USA and bought a number of properties himself over there. He’d be a great contact to give personal experience on what to do, what not to do and where to look.

I believe his focus has moved away from buying in USA possibly largely due to the weakening dollar.

One word if caution regarding USA – its a very big country and very different conditions to Australia. Research is very important. There are many areas that are very cheap but also largely abandoned. Be careful. Visiting and scouting around is highly advised.

TZ

Not sure if your being facisous or not.

However,,, I for one have gone out of my way to help your Countrymen and others try to figure out what they do or do not own. All for nary of a thankyou…

and in this case as stated above this was a loan to a US person or company for a rehab flip… This is what I do and have done for most of my carrer…and have offered to help. to date all we have is the person or company that Lovehouses lent to and an address and a link to a Biggerpockets blog…. Biggerpockets is like the Forum here in the US bunch of people posting.

when and If Lovehouses cares to share his original documents I will be happy to tell him what he has at no charge… Or he can hire an attorney in the state the property is in and send the original documents and pay for a foreclosure… this if indeed he has a valid mortgage held over the property…It major issue here is whether he has been totally defrauded by this individual.

The house if it has not been rehabbed is probably only worth 5 to 8k max… and if thats the case, I am not sure if he is in a mortgage state or deed of trust state… DT is really simple to foreclosure, Mortgages its a court case… So how much money are you going to throw at a deal that your return is only going to be 5 to 8k if your lucky…Me I would just write it off and say goodbye I got screwed..

Now if the property has been rehabbed and their is a tenant in their its only value is what another marketing company could sell it for and or wholesale as there is no retail sales in these type of renter areas by and large… So maybe he just keeps it as a rental and Maybe Kyler or another KC Vendor points him in the direction of a PM…

So I will leave it there… No up side for me, just trying to help if I can.

JLH

My bad,,

did not mean that of the whole bigger pockets community,, I wrote that at 3 am.

My point being that there are so many wanna bee turn keys guys in the US and they get an audiance there the poor public has a hard time sifting through those that are legit and those that are not ready for prime time and want to experiment with your money is really my piont.)))

Lovehouses sent me what he had on his transaction I reviewed the documents and  I replied to him personally.. and hope it all works out for the best…

JLH

https://twitter.com/GreaterKCHomes/statuses/210451287274307584

Looks like he is still busy at it. 

TZ

that is what we liked to do bring entertainment value to the site and just think I only say half of what I would like to say:)

Kyler,

Och