About 4 weeks ago an agent brought me a full price offer on one of my personal older apartment complexes. I have it listed in the MLS and he brought me an almost full offer.

This agent told me his client was buying 4 million dollars worth of rental property here in Dyersburg,Tn. On the contract the other agent put that the attorney would be holding the earnest money($6000). I agreed to this but had a bad feeling about this deal.(red flag)

I had a customer that called about these units and I told him I would show them to him but just got a high offer on them. He and I looked at the property and I told him I had a bad feeling about this deal because of many factors. This was a couple days after receiving the offer and the attorney(friend of mine) had not received the earnest money.(red flag)

I checked with the "potential" selling agent and he said he met with the buyer and his banker and even looked at his financial statement. The attorney who was going to be used by the buyer(friend of mine and the selling agent) decided to call the bank where this loan officer was working(as per business card) but that bank said they did not have anyone by that name in that bank.(red flag)

Well, now 7 days has passed and still no earnest money(red flag). It is at this point that I knew this deal never got off the ground. I talked to other agent yesterday at church and he said he called FBI into the picture and found out that this guy was trying to scam his family into going into this deal but he planned to take the money and run. He is now in jail(very high bond)awaiting his court date.

In the mean time, I have informed my other potential buyer that my hunch was correct and the other deal was bogus. Hopefully he will come through and buy this 10 unit complex.

If it looks like a duck, smells like a duck, and walks like a duck then it is a duck! My hunch was correct and it kept getting confirmed along the way.