In this episode of Properties to Profits, I open up about one of the wildest and most unexpected experiences of my real estate career—we got sued by a seller. Yep, you read that right. A seller accused us of breaking into her home and stealing valuable family heirlooms. While the accusation was completely false, the lawsuit dragged on for over 18 months and forced us to defend ourselves in court.
I walk you through exactly what happened, how we handled it, and the changes we’ve made in our business to make sure this never happens again. From managing lockbox access to training sellers on how to use them, this episode is full of real lessons that can protect you from legal and reputational headaches—especially if you’re wholesaling or managing seller relationships.
Episode Timeline
[0:00] Introduction
[0:44] Why we were sued by a seller—and what she accused us of
[1:12] How the case unfolded, from lockbox use to court hearings
[2:06] What we believe really happened—and how it could’ve been prevented
[3:14] Working with detectives, attorneys, and presenting evidence
[3:41] The final judgment—and the relief that came with it
[4:02] Key lesson #1: Always use new, trackable lockbox codes
[4:37] Key lesson #2: Teach sellers exactly how to use a lockbox
[5:23] Going above and beyond—even when it’s not your legal responsibility
[6:01] How one mistake can still lead to bad reviews (even if you’re innocent)
[7:17] Why empathy matters, even when you’re falsely accused
[8:03] Real estate is about service—and avoiding assumptions that cost you
3 Key Takeaways
-
Always use unique lockbox codes and document who receives them, when, and how.
-
Don’t assume sellers know how to use tools like lockboxes—teach them proactively.
-
A single misunderstanding can cost you thousands in legal fees and reputation damage—so build airtight processes.
Links & Resources
Follow me on Instagram: @realestatemike02
Subscribe to the Properties to Profits podcast for more real-world real estate lessons and tactical strategies
Enjoyed the episode?
If this helped you tighten up your seller process or avoid future lawsuits, subscribe, leave a review, and share it with someone in the business. Let’s keep turning properties into profits—together.
Popular Podcasts
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.
Las Culturistas with Matt Rogers and Bowen Yang
Ding dong! Join your culture consultants, Matt Rogers and Bowen Yang, on an unforgettable journey into the beating heart of CULTURE. Alongside sizzling special guests, they GET INTO the hottest pop-culture moments of the day and the formative cultural experiences that turned them into Culturistas. Produced by the Big Money Players Network and iHeartRadio.
Crime Junkie
Does hearing about a true crime case always leave you scouring the internet for the truth behind the story? Dive into your next mystery with Crime Junkie. Every Monday, join your host Ashley Flowers as she unravels all the details of infamous and underreported true crime cases with her best friend Brit Prawat. From cold cases to missing persons and heroes in our community who seek justice, Crime Junkie is your destination for theories and stories you won’t hear anywhere else. Whether you're a seasoned true crime enthusiast or new to the genre, you'll find yourself on the edge of your seat awaiting a new episode every Monday. If you can never get enough true crime... Congratulations, you’ve found your people. Follow to join a community of Crime Junkies! Crime Junkie is presented by audiochuck Media Company.