Home Buying in Jacksonville>Question Details

Wesptrsn, Home Buyer in Lewisville, TX

I just bought a house in Jacksonville as an investor property that was grossly misrepresented by the seller. Any recourse in Florida?

Asked by Wesptrsn, Lewisville, TX Sat Mar 9, 2013

He advertised the house a triplex, in reality house is a duplex with a closed off area that leaches power off one of the other units. Claimed "actual rents" were on the low side $600 per unit on the 1 bedrooms including the closed off thing that wasn't really a unit at all. Claimed $750 actual rent for the 2 bedroom upstairs when it's actually around $400 according to the guy who rents 6 other house on the street. Sent a rehab estimate of 13k to me after receiving an estimate of 23k from the rehabber. The rehabber said once he got the original estimate the "realtor" told him no, just do the bare minimum to get it rented, this was what he sent me. This is my first purchase in florida, is that how all investor realtors operate down here? I heard it was great down here, but I'm less than impressed. No, I didn't do my due diligence, WC Equity group claims to be experts in investor properties in Florida with tons of testimonials etc. Why would a realtor do this to an investor? I buy lots!

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I think a better question is, "Why would an investor buy a property without an appraisal, home inspection, or copies of all leases and lease applications?" I've sold over $3,000,000 in Investment property and never did I work with a Buyer who didn't inspect the properties and request copies of all leases after acceptance of the contract. These items are all part of basic due diligence for any buyer purchasing an investment property. I suggest you look in the mirror to find out what went wrong on this deal.
1 vote Thank Flag Link Sat Mar 9, 2013
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I agree with Ann Ryan below.

Come on now, how does such an experienced buyer get shafted to this extent?

Were you trying to save $800.00? (350.00 in home inspection and 450.00 on an appraisal)

Did you not want to buy a rental property warranty for $550?

There has to be more to this story as I'd say I'd trust about 95% of these FL realtors. Not that I care for that many of them, but from dealing with them all over the state, the ones who are still in the business are at least pretty honest and operate with ingregrity.

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1 vote Thank Flag Link Sat Mar 9, 2013
Wow, I once heard it said, "if you buy a diamond ring for 10 cents, you get a diamond worth a dime." That being said, you have answered your own question. A good homes inspector is worth every penny they are paid. They go under the home if it is above grade, they check all the nooks, crannies, crevices possible. They know what to look for with regard to damage and repairs done. If you bought cash, then an appraisal would not have been required, but your Realtor would have provided you with comparables. But I do not see the mention of Buyer representation. Realtors, appraisers, home inspectors all have to be licensed by the state of Florida and must continue their education to keep their license. I work with several investors in the NE part. They buy cash, they have not ever not walked a property, had it inspected, checked the county for liens, permits or lack there of. I can't imagine making a large purchase without doing research and due diligence. Don't 'throw the baby out with the bath water" just because a poor decision was made. Florida is filled with professionals with high integrity and are willing to help Buyers and Sellers meet there real estate needs.
0 votes Thank Flag Link Sat Mar 9, 2013
It sounds as if there are many gray areas in your complaint list, areas open to interpretation. That will make the job of getting recourse harder, to say the least. But only an attorney can tell you for sure. My bet is that he will tell you to chalk it up to a learning experience and let it be.
0 votes Thank Flag Link Sat Mar 9, 2013
Hi,

Sorry to hear about your experience. You have possible recourse in two areas. One is the Florida Department of Business Regulation as REALTORs are licensed in the state. Lodge a complaint if you can substantiate your claim at the same time contacting the agent's broker. The second is to hire a Florida real estate attorney to see what legal actions you may have against the seller and/or the agency representing the seller.

As for your "why" question. This is a hard one as I certainly wouldn't want to bite the hand that feeds me. In today's social media world, something like this could go viral and there goes the business.

All the best
Charlie
Charlie Chorman - REALTOR
Accredited Buyer Representative
Coldwell Banker Vanguard Realty
904-571-1358
yourrealtor@att.net
0 votes Thank Flag Link Sat Mar 9, 2013
Your recourse is to do your due diligence before you buy again. Yes, there is plenty of money to be made in rentals here in Florida, but I think sticking to condos/townhomes makes more sense for the individual, long-distance investor.
0 votes Thank Flag Link Sat Mar 9, 2013
Wow, judging from the responses hear, I'm guessing a Florida realtor working with an investor can say or do anything they want. I work with realtors all over the country, never had this happen before, sounds like you got your realtors back here in Florida. Good for you, funny not one comment on the realtors part in the deal of all responses. It's my money it's all on me in Florida, got it, you can have it.
Flag Sat Mar 9, 2013
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