Posted by MV on February 01, 2007 at 14:32:26:
You could also contact the police and claim fraud/theft depending on the details and they would find him.
Bad partner - looking for options - Posted by Tom K
Posted by Tom K on January 25, 2007 at 01:22:51:
I’m looking for options given an ill-advised investment I made on a rehab property. In short, I entered an agreement with someone where he would coordinate all rehab work and sale of property and I would finance. We had/have a signed agreement but not notarized nor created by an attorney to my knowledge.
Money was provided and work progressed (receiving frequent updates and pictures) and suddenly, all communication has died. Without getting into details, I suspect my “partner” has run out of or misallocated funds (we’re already well over budget) and is hoping I disappear since I’m 2000 miles away and not likely to make the trip to track him down. Oh yeah, title is in his name as far as I know (was supposed to quitclaim 60% to me but I don’t think that ever happened).
Anyway, looking for advice on how to proceed from here. I think choice #1 would be for him to sign over the property to me and let me just take it from there independently (he paid next to nothing for it). If he’s unwilling to do that, do I have a legal leg to stand on and go after him for my money back? In short, the agreement says that I will provide $xx for rehab (which I’ve exceeded by now) and he will do his best to manage rehab and resale. I obviously don’t feel that he is upholding his end and if he won’t resolve with me directly, I’m trying to gauge if taking him to court is going to be worth it for me.
Any advice appreciated. Thanks.
Re: Bad partner - looking for options - Posted by DJ-nyc
Posted by DJ-nyc on January 25, 2007 at 11:24:50:
Tom,
When you took out the mortgage, Was YOUR name on the deed?
Matter of fact, Did you take out a mortgage or was it Cash?
Do you have his name, number or any information about him?
Do you have the information on the property? You can look online and check the public records to see if he sold it from under you. (sounds like he did)
If I were you, I would be on the phone with an attorney YESTERDAY and get one local to the property you supposedly bought.
Like Dealmaker said, sounds like you paid for his rehab and he may have cashed it out on you.
Expensive lesson indeed. I only partner if it is necessary, if not I do my own thing. I also have to “run it by” some more experienced Friends/Mentor to make sure I ain’t buying fool’s gold.
Sorry to see this post, but everything is either a lesson or a blessing.
DJ-nyc
Re: Bad partner - looking for options - Posted by dealmaker
Posted by dealmaker on January 25, 2007 at 08:43:06:
Ouch; not to make you feel worse but this post should be required reading for every new regristrant to this site!
I’m not sure how much $ you put into this deal, but my suspicion is that it is GONE and the odds of getting it back are slim. From reading your post a few times I don’t see that you actually OWN anything.
You agreed to finance HIS rehab; was this via a lien or DOT/Note on HIS ppty?
You say you signed an “agreement” with him; is it a Partnership agreement? Do you even have a copy of this agreement?
I’m not sure you have any “legal” leg to stand on from what your post relates. Unless the amount of money you have in this deal is more than the cost of a couple of airplane tickets and a few hours of an attorney’s time, I think you’ve had an expensive lesson.
What kind of due diligence did you perform before goign into this deal?
dealmaker
Re: Bad partner - looking for options - Posted by Tom K
Posted by Tom K on January 25, 2007 at 17:32:54:
Don’t worry about making me feel worse - I knew it was a risk when I entered and I also knew I was sloppy when entering the agreement and was willing to accept the potential consequences (which I may have to do now). To answer your question, I have no lien or nothing - just a written “agreement” signed by both of us - not a formal partnership, just a piece of paper spelling out the agreement terms and signed by both of us. I knowingly took the risk based on the fact that this guy seemed to have some RE background over the past few years. Obviously not proper due diligence nor precautions but at this point, I’m not crying over spilt milk but seeing what my options are. The amount invested is definitely worth a plane ticket and legal action but I’m trying to gauge if I have a leg to stand on. At a minimum, I’ll consult an attorney to get an opinion based on all the facts as a starting point and decide where to go from there.
for options - Posted by Nike
Posted by Nike on January 25, 2007 at 20:59:31:
Since when is a written agreement nothing? If the agreement suggests an intent to enter into a partnership then it’s a partnership. Your money in is your contribution. Provide more information and we can help you sort this out. How much did you invest? What was the purchase price? Rehab cost? ARV? Where are you? Where’s the property? When did you sign the agreement? Date of the purchase? Good luck.
Re: for options - Posted by Tom K
Posted by Tom K on January 26, 2007 at 11:55:15:
Thanks for the encouragement. Here’s where we are:
- House is in Michigan, a beat down uninhabited multi-family that he supposedly paid $5k for and that was considered his “investment” as written in the agreement. As I check county records on the web, his name is not listed as owner so I’m not sure if he really owns it or not. I will be contacting the county to see if the records on the web are up to date for the property.
- I was financing the rehab and am in for $32k. I am in California. Per the agreement, he was supposed to Quitclaim to me a 60% interest but I never received any copy of the Quitclaim (which I suspect never occurred). After completion, supposedly the property would have an ARV of $70k-$80k which we were splitting 60/40 after taking out our respective investment.
- Agreement was signed in mid-October and work with updated pictures progressed through mid-December when contact became very infrequent. I last spoke with him 2 weeks ago but his voicemail is now full, no response to emails, and I think he’s running/hiding from not only myself but also some other deals gone bad.
- I have no idea how much of the rehab got completed but per pictures that were emailed, I know a fair amount did occur. My current suspicion without engaging anyone locally yet is that he’s in way over his head with this and other activities and he has abandoned the project without completing it. I doubt he has sold it but rather just not completed it. As a sidebar, I found other people who have worked with him and had bad experiences in his ability to deliver as promised so I suspect where we stand is a half-rehabbed property and he has no money and is trying to steer clear of multiple people by now.
- While I don’t have his address, I’m certain he can be tracked down. His cell phone may be filled up and he’s not answering but I did get an answer on his home phone last night so I’m sure it wouldn’t be a stretch to get his address.
Hopefully that gives you a bit more info. Thanks for any attempt to help and any attorney in the proper area (either CA or MI, not sure where) that might want to discuss working with me on this, I would be happy to hear from you.
Re: for options - Posted by Sailor
Posted by Sailor on January 29, 2007 at 21:53:02:
To locate his address try the reverse phone tab on
www.whitepages.com, & round up other victims so you can bend
the ear of the DA w/jurisdiction. Is there enough dirt to interest a
news station or newspaper? How about a local consumer media
“Trouble Shooter?”
BTW, if fraud over state lines was involved, I’d tell the guy this
falls under the jurisdiction of the FBI, & that if mail was used, the
postal inspectors can do a # on him, too.
Now you get to do the homework that you missed on the 1st go-
round. If you don’t owe it to yourself, you do to protect future
victims. Even if you don’t want your $$$ back, go get it anyway, &
donate recovered funds to charity.
Tye (who knows even the pros get taken, but that they go after it
when it happens)
Re: for options - Posted by DJ-nyc
Posted by DJ-nyc on January 27, 2007 at 19:15:44:
Tom K,
Take the agreement, get an Michagan attorney and file a lis pendes and cloud the title for your 32K. You may be able to do all of this without a plane trip. If you tie up the property you don’t have to find him, he will find you.
Good luck,
DJ-nyc
for options - Posted by Nike
Posted by Nike on January 27, 2007 at 11:38:03:
Call a MI title company and get a title report. You’d want to hire a MI attorney as MI has jurisdiction over the matter and that’s where you’d file (if necessary). Michigan’s a big state–where in Michigan? Where did you send the payments to if you don’t have his address? You need to get the deed as agreed to in the contract or file suit along with a lis pendens to at least prevent the owner from selling or refinancing without your knowledge. Agreement was signed in mid-October? C’mon–you’re acting like you have more cash than brains–you need to act now.