Investment deal that turned sour

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  • Brian EA
    Senior Member
    • Dec 2005
    • 786
    #1

    Investment deal that turned sour

    In 2006 Client took 40 grand from his 401k plan and invested in real estate hoping that he will be able to flip it. The deal fell through and the dealer did not insist on the client to honor the contract. The dealer did not provide any paper work to substantiate the closing of the deal
    Can the client claim any loss?


    brian
    Everybody should pay his income tax with a smile. I tried it, but they wanted cash
    Tags: None
    • ChEAr$
      Senior Member
      • Dec 2005
      • 3872
      #2
      Explain, please?

      Originally posted by Brian EA
      In 2006 Client took 40 grand from his 401k plan and invested in real estate hoping that he will be able to flip it. The deal fell through and the dealer did not insist on the client to honor the contract. The dealer did not provide any paper work to substantiate the closing of the deal
      Can the client claim any loss?

      brian
      If the deal fell through, does he therefore not still own the house?
      ChEAr$,
      Harlan Lunsford, EA n LA

        Comment

        • Brian EA
          Senior Member
          • Dec 2005
          • 786
          #3
          Originally posted by ChEAr$
          If the deal fell through, does he therefore not still own the house?
          No sir,. He owns nothing.
          he is fortunate that the dealer allows him to get out

          brian
          Everybody should pay his income tax with a smile. I tried it, but they wanted cash

            Comment

            • Brian EA
              Senior Member
              • Dec 2005
              • 786
              #4
              Come on Folks, I need some help here.

              I need to tell my clients somthing tomorrow.


              OH LORD--- PLEASE HELP I AM A COUNTRY BOY

              brian
              Everybody should pay his income tax with a smile. I tried it, but they wanted cash

                Comment

                • S T
                  Senior Member
                  • Jun 2005
                  • 5053
                  #5
                  papers

                  Surely there was some form of paperwork. Canceled check,

                  Who did he pay the money to, why did the "deal" fall through?

                  Sounds like a "scam", take the money and run, no title transfer, no contracts, no escrow.

                  Sandy

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