Posted by ABC Leasing Services on June 27, 2004 at 22:28:37:
Sounds like you have a couple of options.
#1- Wait it out until the property is rehab and sold.
#2- Sue the builder in court.
I am not a lawyer and any opinions I give here are not to be considered legal advise in any way, just an opinion.
Newbie Taken for 10 Grand Please help! - Posted by Harsper
Posted by Harsper on June 24, 2004 at 11:22:31:
I recently partnered with a real estate investor in Chicago to rehab a property for 5,000 that was to be a thirty day flip.
In March we drew up a notarized letter of direction stating that in exchange for the 5 thousand I invested, the owner directs $15,000 to be paid out in April. Needless to say the 30 days elapsed and there was no closing, no payout.
The investor excuse was that he ran into permit issues and could not start project as intended- othr excuses later followed. Subsequently, Verbal agreements were made to receive some payout on other properties he was closing on. Needless to say this has not happen either. We are now in June and we are not getting anywhere - only excuse after excuse…
Sadly on my part my wife and I has entered two deals with this character - so we are out of 10 grand.
I feel the invested property will eventually get rehabbed but my concern is that this shady investor has made arrangements like this with several other people and not sure how I can ensure my payout as I now have bad blood with this guy…
I have a copy of the 2 notarzied letter of directions and cashed checks. I’m looking for guidance on how I can protect my pay-out interest when the properties close.
And other legal remedies I can pursue.
Any and all input appreciated