Hard No

Every month, I encounter dozens of true stories about property owners trapped in seemingly impossible situations.

Here's one about a common — but little known — trap that “cash buyer” investors can lay for property owners:

• When Marcus rejected an investor's reduced offer, he thought he was making the right call

• What he didn't know: that same investor would then quietly record a document that would block all future sales

• With tax collectors closing in and no buyers willing to touch the property, Marcus was running out of options

Here's how a simple document recording turned into a months-long nightmare for one property owner.

Note: While this story is based on real events, some details have been changed to protect the privacy of the individuals involved.

Share Your story! Have you encountered similar unscrupulous tactics from investors? We want to hear your story.

A Simple Stand

"The buyer was offering him way less than he agreed — a complete bait and switch," Ronnie explained. "We weren't going to let Marcus get taken advantage of like that."

Marcus, who relies on his longtime friend Ronnie to talk for him due to hearing loss, had signed what seemed like a straightforward contract with the first buyer.

But when they tried to slash the price by over $30,000 at the last minute, Marcus made what anyone would consider the obvious choice: he refused to sign a new contract.

The property was worth every penny of the original price, and Marcus thought he could line up other interested buyers. Walking away from a dishonest investor should have been the end of the story.

Instead, it was just the beginning of Marcus's troubles.

The Silent Trap

After Marcus walked away, the original buyer made an underhanded move that would prove devastating.

Without saying a word to Marcus or anyone else, they recorded a legal document on title for the property — a memorandum of interest.

"We had two solid buyers ready to go," Ronnie said. "But as soon as their title companies spotted this document, they vanished. Wouldn't even return our calls."

Most property owners have never heard of a memorandum of interest.

That's exactly why some investors use them.

This one-page recording can effectively block all future sales of a property — even after the original contract expires — holding the owner's property hostage.

"When the second buyer backed out, I knew something was really wrong," Marcus shared through Ronnie. "But we had no clue what this investor had done behind our backs. We were completely blindsided."

The Trap Springs Shut

Just when Marcus thought things couldn't get worse, a notice arrived that made his hands shake: he was being sued for delinquent property taxes.

The timing couldn't have been worse.

Marcus needed to sell quickly to avoid losing everything in the tax lawsuit, but every potential buyer disappeared as soon as they spotted the memorandum of interest.

The original investor knew they had Marcus cornered — they would only release the lien if he accepted their cutthroat price.

"I felt sick to my stomach," Marcus shared through Ronnie. "Everything I owned was at risk, and this investor was using it as leverage to force my hand."

Breaking Through

That's when Marcus connected with our team. While most investors run from complicated title issues, we've developed expertise in resolving exactly these types of situations.

Our first step was challenging the memorandum of interest.

It's a powerful but often misused tool, and we know how to push back against investors who abuse it.

"These predatory tactics work because most people don't know they're coming," I explained to Marcus. "But once you understand how to fight back, you can turn the tables on dishonest investors."

Marcus ultimately sold his property to a reputable buyer, paid off his taxes, and kept the remaining equity he deserved.

His story shows that, with the help of a company like Piedmont ARP, property owners can protect their interests and secure a fair deal.