Some Tax Deeds Investors Are Plain Conmen
I was talking to someone recently that told me of this guy/company that had made an offer on a vacant lot they had with severly delinquent taxes. The county was going to sell the lot, this guy made them and offer via a letter, they signed his contract and returned it and later only got around I think $750.00 from the guy on a property worth $30,000 after the guy had offered them $20,000 I did not see how that was possible as they had a contract.
Well, I recently bought a property that had some taxes and although it was paid off at the closing the property was still on the list of properties to be sold. Well, I got an offer from that guy/company. After I read his letter I read the contract and a light went off - same jerk. How did I know? Well in his letter he offered me $20,000 and would send me $750 deposit. Then later in the letter he goes on to say that if I am wanting to sell to sign and return the contract. Well on the contract there is no price and nowhere to put one. As I read some minute and I mean minute as it itty bitty need a magnifying glass print I realized his trick. His letter offers $20,000 but the contract says you are basically selling for the earnest money. It does not spell that out but that is how it goes. In the main body of the contract it says he is offering $750 earnest money. Then the minute print says that if everything passes the due diligence then the sale will be completed FOR the earned money amount.
That means you would end up selling the property for what he offers to you as the deposit. What a jerk. So to those folks who are not cautious like I am they end up reading the letter and do not realize that the contract goes contrary to the letter.
I checked and that guy buys about 5-10 properties weekly from the upcoming sale list because he offers a fairly good price.
People like that give tax deed investors a bad name.
I plan to do some research as I am sure he is breaking some law and I will report him if he is.
If he is routinely defrauding property owners by mail, the FBI may be interested. At the very least, contact the local state attorney or federal district attorney if you determine this is a pattern. We all screw up from time to time and end up with letters and contracts that don't match, but it sounds like you've uncovered a pattern of fraud.
Yeah. I forwarded it to the County attorney over there and some other folks so hopefully they remedy the situation.
I am still amazed though I guess I should not be.