Posted by Mike W - LV on April 26, 2005 at 19:41:39:
Jeff,
If the partner does not want to disclose his/her history, thats a red flag.
Who is putting up the money? Who is negotiating the deal? Make sure each partner knows his/her responsibilities.
You can secure shares of the deal with a note/mortgage that is recorded in the public records. That way, no one ‘forgets’.
If they are borrowing money, I would get a credit check with their permission. Spell it out up front. Get their permission in writing. If they have not paid their debts to others, its likely they won’t pay you either.
I have a few questions regarding a possible land deal with a possible partner I have not met yet. I will be setting up a meeting to feel things out.
First this is a deal to buy land in a developing area. We would hold the land for a period of time (6 months or less) and sell. This was brought to me and others in my REIA and I am wondering how do I protect myself and assets if I decide to partner up in the deal. The deals make sense on paper and the reasoning he needs a partner also make sense.
Questions
Do I get a credit/background check on this “partner”?
How do I make sure this is legit when “partner” does not want to disclose info (documents from past deals) to protect his contacts and keep competition from developing?
Should I ask around about this “partner” in my REIA?
Anything else I should be looking at/watching out for?
When speaking to this partner he said all transactions go through the legal means of trusts, escrows, contracts etc…
I appreciate any help on this, as I’m a bit hesitant to bite. Thanks!