Question to those in real estate

[WingZ]

Ugh I cannot figure a way to get this project moving and I wondered if anyone was ever in a similar position and what they did.

I inherited shares and hard mortgage notes from my dad on some real estate in Fort Pierce Florida. They sold some of the land but kept the prime piece back to develop later. Trouble is they knew the attorney they were dealing with was no good ( much like the first one which they fired , but that's another story ) and let him keep pushing off final development so he could keep charging the group.

The group is a bunch of Doctors my dads age or older. These guys can no longer seem to agree how to move forward. I thought everything was fine as I didn't know the lawyer was lying until I started checking in monthly for progress and noticed I was getting the run around. I hired an attorney and went back and forth until they agreed to let me on the board of directors .

Long story short is once on the board myself and another guy who "inherited" this mess as well from his dad were able to get the group to fire the attorney. Now that he's gone part of the group still wants to work with him and have stalled meetings due to this. Three problems come from that

1. The other attorney he's brought to the table representing these new investors has record and has been to jail for fraudulently cashing checks and other good stuff.

2. I don't think this SOB ( recently fired attorney ) should get a commission as he's the reason why the group didn't move forward.

3. Now no one wants to put any more money in to finish the project.

Trouble is I've never been in real estate and have no idea where to find investors to take this over and get this done or just buy us out and finish on their own.

For those that would say sue them and be done that's a no go as some the guys in the project don't deserve that and they're pretty tapped now anyways ...agh!

 

[docjohn]

Sounds like a complicated mess.The biggest problem seems to be no leader or visionary that the board members will all listen to.I'm sure Steveny could help answer some of your questions about the RE. PM him.

 

[NsXMas]

Where is steveny lately? Don't think I've seen him post too much...

 

[Dtrigg]

Where is steveny lately? Don't think I've seen him post too much...

He has been busy remodeling his house.

 

[NsXMas]

He has been busy remodeling his house.

I see. He must miss us. :biggrin:

 

[WingZ]

Sounds like a complicated mess.The biggest problem seems to be no leader or visionary that the board members will all listen to.I'm sure Steveny could help answer some of your questions about the RE. PM him.

It really is. The other guy that came to the board with me actually does commercial development for a living and was willing to set everything right and et things going. Unfortunately the attorney that was fired still has the ear of part of the group and kept them agreeing to let him takeover to get the project going again.

As mentioned partially the old attorney says he has a another group to come in but nothing ever manifests ( i.e real offers or bids ). Another problem is the group is old and these guys seemingly want to just sell.

SNY did come to mind and I hope he replies , but I didn't want to pm him or anyone individually so as not to look like I'm fishing for buyers or free advice. Although in reality I guess I am I just don't want to pressure any individuals.

My true hope with this post is to maybe through word of mouth find someone who knows someone who's looks for special projects like this to turn around. Fingers crossed.

 

[Ponyboy]

The amount of time and money that will be needed to move the project into a proper development (tentative tract map - any improvements - to final tract map plus engineering and construction fees, legal fees, etc) will likely be too much to justify remaining in the investment. I'd let the other partners know that you'd like to sell your share of the investment to them and just get out of the headache altogether.

Don't try to get rich from the sale, just try to find the price point where it's too good for the rest of the investors to refuse but still fair to you.

 

[WingZ]

Thanks Pony that was what I originally tried to do , but at this point everyone would prefer to be bought out and no one has the cash to do it.

Last attorney along with the first stretched this project out over 20yrs. Now these guys are tired and confused. We have the road map of what needs to be done but these guys can't/won't agree on it or to put out more money. Just a mess

 

[Ponyboy]

You're very welcome.

If it's not possible to sell your share or the property outright, you may want to look into real estate arbitration to get the development going. This will make the group come to some consensus and is legally binding. I'd also contact some of the developers close by to see if they'd like to take over the project.

The big thing though, even if real estate arbitration works, is to get out of this project asap. You're dealing with a seedy lawyer that can drag and extend any progress for years...literally years.

 

[WingZ]

We did this last year. The director of the group had us all meet at an attorneys . This attorney had done his homework and saw through the old attorneys BS. He gave us the road map of everything needed to complete the project and our timeline.

The board member who actually does commercial real estate for a living agreed to takeover all other tasks that didn't have to have an attorney so we could cut costs. I thought everything was set but when I checked in once a month just for progress updates they were exactly where we left off. Then came word that part of the group wanted to keep working with the fired attorney because he said he had an offer from the same group he brought to us before he was fired. I was in disbelief that those idiots would even consider still trying to work with the idiot who had them paying his bills for years w/o doing sh*t

So now the board member who was going to help us for free wants a contract and deposit to be paid because he felt they wasted his time ..just a mess! Plus the others won't meet w/o the old FIRED attorney present.

 

[Ponyboy]

Can you talk to the lawyer's "group" and stipulate that you'll only entertain their offer if they work through another agent? Considering your last post, I'd hire a well respected local counsel to be your group's lead and have any prospective buyer or developer work through them as your sole representative. Maybe be creative on your lawyer's compensation agreement so that you don't have any initial out of pocket expenses.

Hiring a lawyer may be the more expensive method but it looks like it may be worth it given the circumstances.

 

[WingZ]

Only problem is due to that lawyers past criminal record for fraud the part of the group I'm aligned with doesn't really want to work him. Besides his counter offer seems to be just talk as we've never been given anything in writing nor a verbal.

Last time I had a lawyer it got nothing accomplished but a big bill I had to swallow. That same attorney referred me to counsel that would only be paid if I won but again I'd have to sue the whole group even the good guys who want to move forward but are being held up by the malcontents.

I wish I could trade out but who would want to be stuck with this group ..lol

Thanks man your replies at least let me know I was going about things the right way. I guess my only alternative is to find someone to buy the project outright , but so many lost their shirt and are running scared I don't know where to look. LOL Who would ever have thought beach front island property in Florida would give anyone this big of a headache:biggrin:

 

[Stephen@NCAutoUSA]

I didn't know there were such corrupted lawyers...

Stephen

 

[WingZ]

I didn't know there were such corrupted lawyers...

Stephen

Stephen

I have to say honestly their are few people that I really dislike , but this guy gets me so made I could spit! I was pushing the group to get him disbarred so he would stop interfering ,but they for some strange reason have the "nephew" complex with this dirtbag?? He's cost them millions literally with this and other projects.

I'm trying to find anyway I can to make sure he doesn't get another dime especially not a sales commission.

 

[WingZ]

Well I posted an ad in the classifieds but can't imagine I'll get any bites but maybe some leads. Thanks for all that contributed here.

 

[NSXLuvr]

What blows my mind is that the group of investors went along with the project delays for 20 years!!! WTH! That can't be true. Its amazing how stupid doctors can be with money!

 

[WingZ]

What blows my mind is that the group of investors went along with the project delays for 20 years!!! WTH! That can't be true. Its amazing how stupid doctors can be with money!

Well it's actually been more than 20yrs. The lawyer that started the project kept sending bills and saying whatever about delays and they bought it. Now they have to sell at a lost. The lawyers lived good off this for a loooong time:frown: