The first project happened much by surprise out of a botched property purchase when the Sellers were unable to complete the sale and deliver “clear title” due to a then unknown and later unresponsive owner while a pending property tax lawsuit filed by the County threatened loss of the property. Working through the process of locating the dissociated owner, discharging the property tax lawsuit, and working through the curative title work to bring the property to good standing was a learning experience to say the least. It was a pet project of sorts since it required two years of work, a private investigator’s help, multiple attorneys and even a new lawsuit to complete. After sharing this experience in the local real estate community, it became apparent that literally thousands of properties shared similar fact patterns.
Many executors and administrators, even attorneys and others interested in the administration of estates, find they lack the time or expertise to handle the most complicated searches. One of the bigger problems is locating disconnected family members or heirs and through our international network of private investigators coupled with inhouse resources we have been able to globally locate with high success rates.
ARP found that it became easier and more efficient to purchase the properties or even partial interest in the properties from the known and friendly owners without title insurance and resolving the problems as an owner thereby relieving the property owners of the burden and effectively taking their place.
Reasons property cannot sell traditionally but are acceptable to ARP include the following:
- Not all owners or heirs of the property agree to sell.
- Not all owners or heirs of the property are identified or able to be located.
- Judgements / liens attached to the owners of the property or the property itself that are more costly than the property itself.
- Orphaned estates where the Probates were not filed, were filed but remain incomplete, or even fraud committed by the Executor, Administrator or Trustee.
- Land locked property.
- Improperly executed property tax auctions of property.
The companies calling became clear after completing several transactions that were uninsurable by title companies and the calls began rolling in… “after my divorce settlement my husband and I owned our old rent house fifty fifty and he won’t let me sell it”, “Our grandparents passed away forty years ago and we have no idea what went wrong but a cousin is living in the house and I was told I own part of it but am unable to get help from any attorneys”, “My brother and I inherited a ranch and he is not paying his share of the property taxes. Now I just got served by the sheriff in a tax lawsuit and I want out of this bad situation”, “My sister is the Executrix of my Mom’s will and she won’t show it to me, but the house needs repairs and the City wants to demolish it”, “My home is in foreclosure and the bank is refusing to provide the pay off statement to me” … (insert a few more different examples here.
Eventually it became apparent to the Founding Partners of ARP that no other companies they could find in the State of Texas were willing to offer its type of relief to a broader market because financing is not generally available to support a business of this nature and it must rely solely on the financing of the Partners due to the high risk the company assumes when purchasing assets or “shares” of property in this way.
Strong knowledge of the Texas codified laws is required to resolve most of these cases and ARP has spent countless hours in the Texas courts side by side with it’s attorneys learning exactly how to succeed at this specialized type of transaction and real estate litigation. Additionally, Title companies operate by a set of guidelines that direct their underwriting of title insurance and that generally excludes transactions of this nature. Finally, the typical real estate operator / purchaser is unable to facilitate the types of transactions ARP is able to because they are unable to completely understand them.
Most property owners of problem real estate become exhausted dealing with dysfunctional siblings, long lost relatives they have never met, legal exercises that requires time, patience and money, overreaching neighbors, ex-spouses with a grudge. You get the idea. As unpleasant as these examples are, and yes they are, we learned that we are actually good at bringing resolution to these matters. And what is even weirder, we kind of like it. As matter of fact, something straightforward doesn’t really do it for us anymore, no kidding. If owners of an asset don’t have something absolutely unbelievable or unsolvable after multiple attempts at resolution, then we want in, we will take the call and listen to the story. This is who we have become, the Asset Resolution Partners.
We are proud to say most of clients are the fed up advisors who can’t solve, either economically or academically, their customer’s problem. 75% of our clients are attorneys, relators, wholesalers, title companies, banks, or financial advisors. The other 25% of our clients are those asset owners who come to us directly, by word of mouth, those families that are fed up themselves.
ARP believes that it is able to accommodate property transactions that others are not because it maintains institutional knowledge of the very small area where the small scope Texas laws, attorneys, judges, title companies, and most typical real estate operations actually all overlap in a very minute place. That small space is where ARP operates.