Posted by jackie on July 18, 2005 at 24:46:35:
Thanks – great minds think a lot, because I can assure you that the red flags have been going off all over the place! I am not the actual investor but am drawing up the paperwork. The investment is required for the repair/renovation of the foreclosed property and yes, it is strictly financial. I find the whole situation sketchy, but I’ve given my many warnings. Any other thoughts are appreciated. Thanks.
loan investment - Posted by jackie
Posted by jackie on July 17, 2005 at 10:54:54:
I am interested in investing with another party who has purchased a flip property. What is the best means of documenting my investment to ensure I get an appropriate return, or protect myself against potential loss? Thanks!!
Re: loan investment - Posted by dealmaker
Posted by dealmaker on July 17, 2005 at 19:58:11:
I think the first thing you need to ask yourself it: Why is this other person “inviting me in”? They’ve already purchased the property so that expense is out of the way. Does it need a lot of rehab/repairs/updates? What is to be your contribution to doing those? Is it strictly financial? Or do you possess some skilled labor that isn’t ordinarily available?
Why they want you in is a HUGE QUESTION, and should be setting off red flags. How close is the place to being placed back on the market? Typically flips are done quickly, less than 90 days, so how long is your money going to be in there?
The ONLY protection is YOUR NAME on the Warranty Deed, IMO. It’s the only way I’d even consider it, AFTER I HAD SATISFIED MYSELF REGARDING WHY THEY’RE OFFERING THIS TO ME.
I hope you’re suspicious by now.
Dealmaker