Need advice on deal - Posted by Jeff

import · April 21, 2005, 3:42pm

Posted by Jeff on April 21, 2005 at 19:25:07:

Dave & everyone that replied.

I thank you all for the responses, and I have to say I do agree that I should walk, he is WAY to shady. The reason I did not disclose all info is in case he reads this website, so I was intentionally vague. I’m walking for sure! Thanks again.

-Jeff

import · April 21, 2005, 3:42pm

Need advice on deal - Posted by Jeff

Posted by Jeff on April 21, 2005 at 15:42:12:

Hello Everyone,

I posted this in the law forum, but I wanted to get as many opinions/suggestions as possible on this.

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 if I decide to partner up in the deal. The deal makes sense on paper and the reasoning he needs a partner also makes 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!

Jeff

import · April 21, 2005, 10:09pm

Re: Need advice on deal - Posted by IB (NJ)

Posted by IB (NJ) on April 21, 2005 at 22:09:16:

I agree with the others. Recently decided not to deal with a private investor who wanted me to fly he and his wife from TX to NJ to look at a deal I wanted him to (partially) finance. I was down except the guy didn’t want to give me his lawyer’s info so my lawyer could talk to him/her and feel him out. Claimed that he was the one who should be concerned about ME and not the other way around. Funny thing was that I provided a schedule of my deals plus references that included 2 attorneys and a bank official.

I never deal with anyone who is unwilling to disclose his/her references. It’s a sure sign of a fraudulent individual IMO.

import · April 21, 2005, 7:15pm

Re: Need advice on deal - Posted by phil fernandez

Posted by phil fernandez on April 21, 2005 at 19:15:46:

As my friend Dave said, you need to be in control. Sounds like you have the money so you should be making the rules, not the potential partner that needs your money to complete the deal.

When someone doesn’t want to disclose, then I figure he has something to hide. I’d walk from this one.

import · April 21, 2005, 6:38pm

Advice? - Posted by DaveD (WI)

Posted by DaveD (WI) on April 21, 2005 at 18:38:54:

You haven’t given us a lot to work with, but if your involvement has anything to do with you writing a big check, you are getting screwed! Any reputable developer would be totally upfront with their past wins. The proprietary protection is CALLED A NON-DISCLOSURE AGREEMENT! Walk, and get involved in deals where you have some control!

import · April 21, 2005, 6:06pm

Listen to your gut! - Posted by Natalie-VA

Posted by Natalie-VA on April 21, 2005 at 18:06:11:

nt

import · April 21, 2005, 5:53pm

Walk Away - Posted by Elizabeth (NJ)

Posted by Elizabeth (NJ) on April 21, 2005 at 17:53:56:

Jeff,

This “partner” is bad news. Why would you even consider for a moment entering into a partnership with him? Trust your instincts and walk away.