Two women in Memphis, Tennessee, have come forward with allegations against a local real estate investor, Xavian McNeal, claiming he accepted thousands of dollars for property transactions that were never finalized. The accusations coincide with an active criminal case against McNeal for theft of property involving a separate but similar claim.
Key Takeaways
- Two Memphis women independently accuse investor Xavian McNeal of taking their money for real estate deals that did not materialize.
- One woman alleges she paid $1,800 for a down payment, while another claims she invested $38,000 for property acquisitions.
- McNeal is currently facing a separate, active criminal charge for theft of property related to one of the investment allegations.
- The Better Business Bureau advises homebuyers to conduct thorough due diligence and only work with verified, licensed professionals.
Allegations from Two Separate Individuals
Separate allegations have emerged against Memphis real estate investor Xavian McNeal, with two women claiming their property purchase plans turned into significant financial losses. Both individuals report sending McNeal money for real estate ventures that they say he failed to complete.
A Dream for a Veterans' Home Dashed
Idella West, a nurse currently studying for her master's degree, intended to purchase a property to establish a residential care facility for veterans. She stated that her motivation was a desire to help people in her community. West was introduced to McNeal through mutual acquaintances.
According to West, she transferred $1,800 to McNeal using CashApp. These payments were designated for a down payment and associated fees for a property located on Jackson Avenue. However, more than eight months after sending the funds, she says she has not received the property or a refund.
"He took my money for his own personal gain," West stated. "He did nothing he said he was going to do. And it's like, how can you do that to someone?"
A $38,000 Investment in Question
A second woman, who requested to remain anonymous for privacy, shared a similar experience. She claims to have invested a much larger sum, $38,000, with McNeal. The purpose of the investment was for McNeal to acquire two properties on her behalf with the goal of generating a profit.
The accuser alleges that McNeal never executed the property purchases as promised. According to her statement, he later sent her a single payment of $1,000 via CashApp, which she considered a partial refund. The remaining $37,000 is still unaccounted for, according to her claim.
"I was just angry," the anonymous accuser said. "I mean, I'm a single mom, I'm a female, I'm a health care provider, and I just—really, I was really shocked. I couldn't believe it."
Investor Faces Active Criminal Charge
Beyond the civil allegations, public records confirm that Xavian McNeal is facing an active criminal case for theft of property. The charge stems from the claims made by the woman who invested $38,000.
Case Details
An official affidavit filed in the criminal case outlines the accuser's claim that she invested $38,000 with McNeal for the purchase of two properties, a transaction she alleges he never completed.
When contacted for a comment on the allegations and the ongoing legal case, McNeal declined to provide details. In a text message response, he wrote, "We're in court with an attorney. I can't speak on any of that." This response indicates he is aware of the legal proceedings but is not speaking publicly on the matter at this time.
Expert Advice for Homebuyers and Investors
In light of these allegations, consumer protection organizations are reminding the public about the importance of caution in real estate transactions. The Better Business Bureau (BBB) of the Mid-South emphasized the need for individuals to perform thorough research before committing funds to any property deal.
The Importance of Due Diligence
Due diligence in real estate refers to the process of research, investigation, and verification that a buyer or investor undertakes before finalizing a transaction. This can include verifying licenses, checking property titles, and reviewing all contracts with a legal professional to mitigate risk.
Daniel Irwin, a spokesperson for the BBB, provided specific recommendations for anyone looking to buy or invest in property. He stressed the importance of verifying the credentials of everyone involved in a potential deal.
"Always work with a licensed professional and verify the licensing and the credentialing independently," Irwin advised.
The BBB offers a checklist for prospective buyers to protect themselves from potential fraud:
- Meet in Person: Whenever possible, arrange face-to-face meetings with all parties involved in the transaction.
- Ask Detailed Questions: Do not hesitate to ask specific questions about the property, the process, and the timeline. Request clear, written answers.
- Beware of High-Pressure Tactics: Be cautious of anyone who pressures you to make a quick decision or send money immediately without proper documentation.
- Verify Everything: Independently confirm the identity of the seller or investor, the legal status of the property, and the credentials of any real estate agents or brokers.
These preventative steps can help protect consumers from financial loss and ensure that real estate transactions are conducted securely and transparently.
