Jaime Perkins/Better Indy Real Estate Better Indy Real Estate Fraud and misrepresentation of a real estate purchase, and utter incompetent property management. Indianapolis, Indiana

The Purchase

I am from California, and I am a beginner real estate investor.  I was introduced to BIR in mid-2008 for the purpose for searching suitable investment properties. 

Shortly after the Thanks Giving of 2008, Jaime Perkins from Better Indy Real Estate informed me of a triplex located at 902-904 Shelby, Indianan, IN that he stated was a good investment property.  He stated the three units are 2 bedroom, 1 bedroom, and a studio. He stated he looked over the property, and determined the property overall is in good and rentable shape with no renovation needed.  He also stated BIR can provide property management service, and have all three units rented out in 30 days, including section 8 tenants, and it would generate $1500 - $2000/month in rental revenue.  At that time, there was one tenant on the property.  Based on his advice, I decided to purchase the property for $50,000 cash.  The deal closed on on 12/4/2008.

 Within one week after the close, the only tenant on the property moved out. 

Four months went by after the purchase, BIR had not been able to find a single tenant. 

In March, I have asked two different property managers, and a very experienced local real estate investor to assess the property.  All three agreed the property is not rentable without renovation costing anywhere from $15000 to $30000.  The local investor said there is no two bedroom unit, it has 2 one bedroom and a 1 studio apartment.

In April, I have asked BIR to sell the property, and they produced a purchase agreement dated 4/15/2009.  Jaime stated the buyer was very qualified. Two and half months later, the deal fell through, I was told the buyer could not qualify for financing.

On July 29, they produced another purchase agreement, stating the buyer already is preapproved.  I pointed out the PA stated the buyer is a licensed Indiana real estate agent, yet I could not verify it with the state Real Estate commission, I was told by BIR I was being difficult. The PA indicated closing date of 8/20, when I followed up on 8/20, I was told they are waiting on the bank. I have not received any update until 8/31, Jaime informed me the new closing date is 9/20/2009 because the bank is holding it up. 

Property Management
For 6 months, BIR could not find a single tenant.  When I asked Jaime the original 30 day estimate, he gave various excuses, the holidays, the weather, etc.  I was told a tenant moved into one of the units on 5/1, and plumbing issues occurred within a week of the move in which required over $1000 to fix, including a new water heater.  Up until that point, I had hoped the property was still rentable, but given what had transpired, I realized I was deceived and defrauded.

The tenant started missing payment with 06/09.  I requested BIR to evict the tenant, initially I was told he would be out by the end of June, yet when I was following up, I was told the person doing the eviction has unexpectedly taken a week off, and no one in the office knew the status of the eviction.  When BIR sent someone to check on the tenant, the tenant was still there, and stated the property had another leak.  BIR (Terrance) said they would send someone to fix the second leak.  Meanwhile, the original person (Holly Skinner) doing the eviction came back and said there was an error in filing the eviction, and she would correct it.  I inquired about the leak, and received on response.  I received a water bill totaling $600 for that month for a studio apartment. I kept pressing for updates on eviction and the leak fix, the other partner Carlin Serie sent a very condescending email saying it is against the law for BIR to evict the tenant because he is on some sort of government veteran assistance program (I have checked wither several other property managers, none of them thinks it holds any water).  I asked documents to support the fact, and never received it.  I contacted the water company on 7/22/to shut off the water, and was sent a final bill which showed an additional $200 water bill incurred in one week, which shows the leak has not been fixed.

So far, as far as I know, a none-paying tenant is still at the property, there is a leak that needs fixing, and repeated attempts to get resolution have been ignored.

I have informed BIR that I am terminating the property management agreement on 7/27, and my new property management company tried to contact them repeately.  BIR has not returned the multiple attempt to contact them, or my email.  There is a $150 deposit that I need to get back from BIR.

Summary
Meanwhile, I am out of $50,000 plus monthly holding costs, stuck with a property can not be rented or sold, which BIR and Jaime Perkins in particular stated is in good condition and rented out.  Through out the whole ordeal, getting any update or communication from them has been spotty at best, I would not hear from them for weeks at a time. 

My salary has been cut by 15% since the beginning of the year.  I have told Jaime that the $50,000 is the last bit of money available to my family, and also our last hope to acquire an income producing property to make up some of the income loss.  Now, not only is that hope gone, it has also become an additional financial drain.  It has created not only financial stress, but also stress on my marriage.  Do not do business with these people, they promise a lot, and deliver nothing, and good luck getting hold of them!