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About to make a large out-of-state purchase, need advice to ensure funds are safe


Nitrousbird
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I have been shopping for a while for a wakeboard boat. I found a VERY good deal on one, on the Ohio/PA border.

 

E-mailed the guy, and I spoke to him on the phone tonight. He is a foreign guy (sounded Asian), so he was a bit hard to communicate with. Basically, the guy owns a business in Seattle, Washington, and is opening another business there. He has to fly back to sell the boat.

 

He said he flew back a week ago, and the buyer was a no-show. He wants to put the funds in an escrow - mentioning AOL Money and Finance. That was a red flag to me, and there is no way in hell I am doing that.

 

I explained I bank with Chase, and I would have my wife (who works there) see what services they have available. He said he was fine with that, and even mentioned doing it Saturday if available, taking it for a water test, and inspecting the boat. We have the cash - I want to make sure the guy knows we have the funds, are very serious about buying, but am not risking my money either...I'll pass on a great deal before chancing my money.

 

Anyway, has anyone else dealt with this type of situation before? What did you do?

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There are some legit escrow services available. Basically you can go to one of the escrow agencies put the sale price in escrow, they advise him that the funds are there, you give him the escrow check, you advise them that the product is what you want and they clear the escrow check and he gets his money
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I mean I understand he had a no-show but if he wants to sell the boat he kind of has to show it and someone has to meet up with you haha... I would rather (if I was you) just send a 'holding' payment and maybe fax and sign some sort of agreement if your really serious about it. But i dont know I've never been in a situation, I imagine it must be a really good deal and you must be confident its not some idiot trying to scam you if your gonna go this far. Just be safe as you seem to be! GL
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I don't think you guys understand what Joe is saying. The guy is going to fly back to sell the boat, he just doesn't want to fly back and have another no show. He wants the money in escrow or something so that it is basically a done deal as long as both parties agree and if one party backs out for some reason not outlined in the escrow agreement (just a no show) most likely there would be a deposit released
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I do understand it. I would still pass.

 

It meets your requirement of "face to face deal"

 

If you understand it why did you say that? Just wondering

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I don't think you guys understand what Joe is saying. The guy is going to fly back to sell the boat, he just doesn't want to fly back and have another no show. He wants the money in escrow or something so that it is basically a done deal as long as both parties agree and if one party backs out for some reason not outlined in the escrow agreement (just a no show) most likely there would be a deposit released

Yes, this.

 

That said, it would have to be through my bank, as I know my bank isn't going to scam me. Money would not be transfered until notarized title and boat were in my possession. This part is not an option, and I will walk away if those requirements can't be met.

 

I was more curious if anyone has ever done something like this through their bank. I'd like to simply do a fund verification, make an appointment with a branch, etc. but I'm not sure if that will be good enough. Not sure what other services banks offer for this kind of transaction.

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I don't think you guys understand what Joe is saying.

 

I followed along perfectly. :)

 

I have bought and sold out of state many times. Never needed an escrow. Whether or not any money is ever put into escrow, if Joe hates the boat, he won't buy it. It isn't the buyer's problem where the seller is coming from or not. If the seller doesn't want to waste money and time flying, hire a local company to sell it.

 

My guess is the only reason this particular boat is even being considered is because it is an unusually good deal. Which is itself another red flag.

 

Again, pass.

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Yes, this.

 

That said, it would have to be through my bank, as I know my bank isn't going to scam me. Money would not be transfered until notarized title and boat were in my possession. This part is not an option, and I will walk away if those requirements can't be met.

 

I was more curious if anyone has ever done something like this through their bank. I'd like to simply do a fund verification, make an appointment with a branch, etc. but I'm not sure if that will be good enough. Not sure what other services banks offer for this kind of transaction.

 

You can get a certified bank check.

 

Honestly a good escrow isn't a bad idea, because you have to tell the escrow company that you like the boat and are buying it and to release the money. Typically you can have a company like Chicago Title do this, who won't scam you.

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Scam. My brother in law was selling his wakeboard boat in florida thru ebay and was gettting scammed from foreign buyers wanting him to pay in advance for shipping/docking his boat for a shipper to pick it up. They try to make everything more confusing on purpose. I dont know all the details but it was all a scam. This was for a 60,000 boat. Boat scams are hot right now.
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I followed along perfectly. :)

 

I have bought and sold out of state many times. Never needed an escrow. Whether or not any money is ever put into escrow, if Joe hates the boat, he won't buy it. It isn't the buyer's problem where the seller is coming from or not. If the seller doesn't want to waste money and time flying, hire a local company to sell it.

 

My guess is the only reason this particular boat is even being considered is because it is an unusually good deal. Which is itself another red flag.

 

Again, pass.

 

This

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I'm not sure this is a good idea Joe, I don't know if I would feel comfortable dealing with someone out of state on a "good" deal to save a few bucks. Who are you going to get to check it out? A water test is nice but you still need to have it gone over so you're not surprised with repairs and unable to enjoy it.

 

I think I'd walk unless you are positive this is what you want and really a good deal and not just a cover up of a mess.

 

Like everyone else said there are a lot of scams going on right now.

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Scam. My brother in law was selling his wakeboard boat in florida thru ebay and was gettting scammed from foreign buyers wanting him to pay in advance for shipping/docking his boat for a shipper to pick it up. They try to make everything more confusing on purpose. I dont know all the details but it was all a scam. This was for a 60,000 boat. Boat scams are hot right now.

 

Glad I saw your post, Joe. I just had a buddy in Naples go through the same issue a month ago on a jet boat...foreign "real estate developer" getting out of the country needing to sell the boat for cheap. The seller insisted on PayPal or a wire when my friend was ready, cash- or check-in-hand to pick it up. Turned out to be a scammer...CAVEAT EMPTOR, homie.

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Escrow isn't appropriate for this sort of thing. What is appropriate if you have already inspected the merchandise is for the seller to require a non-refundable deposit equalling the cost of his travel so he doesn't lose on the deal if you don't show. I would use Paypal to send the deposit to him so it is all tracked. An alternate but slower method would be a money order or cashier's check depending on the dollar amount. Your wife will get either for free since she is an employee.

 

For all the conspiracy theorists here...if this transaction is above $10k the buyer and seller will both be thoroughly reviewed by any and all fincancial institutions used in the transaction. The biggest red flag would be if the deposit or any other method of splitting up the payment would break it into all sub-10k chunks. That tells you immediately that the seller is trying to avoid scrutiny.

 

Please, please don't even give him a deposit without a title inspection. Ohio is one of the worst states to live in for fixing title problems. I've even had a title attorney recommend I move out of state to fix an issue before. Seriously.

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Please, please don't even give him a deposit without a title inspection. Ohio is one of the worst states to live in for fixing title problems. I've even had a title attorney recommend I move out of state to fix an issue before. Seriously.

 

That had to be an interesting conversation with the wife...

 

"Honey, we gotta move to kentucky. I need to fix the title for my car."

 

WAT?!?!

 

http://farm6.static.flickr.com/5024/5758647858_2d619978a0.jpg

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Looks like the bank doesn't do any escrow services and I don't want start paying fees for this anyway. I sent a message to the seller this morning, letting him know I have a proof of funds document signed from the bank I can send him. I also said I would schedule an appointment at a branch he could also verify. At this point if he isn't cool with this I will have to pass.

 

I also will only do the financial transaction at the branch. Have the check drafted on site (more for his peace of mine than mine, as I wouldn't accept a check unless I saw a legit bank draft it), and have the title notarized at the branch as well.

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Where is this Boat located? I have a few friends that live in that area and I might be able to get one of them to go look at it for you before you go there...If he can't arrange it to be viewed than it is for sure a scam!!!!!! He has to have someone by the boat to be watching it. You just do not go away with no one to watch over your stuff....PM Me if you want my help.
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