rehab partners vs. mortgage payments - Posted by AnnaSalk

import · January 15, 2001, 5:40am

Posted by AnnaSalk on January 16, 2001 at 08:03:27:

I know I was not clear (the hse is in NY, my place of residence, the partner is in Cal., etc. etc.) - still, what you told me gave me enough information to decide what to do. Thank you.

import · January 15, 2001, 5:40am

Posted by AnnaSalk on January 15, 2001 at 06:40:41:

I am a 30% owner on a property in rehab. My partner is in California and I am in NY. So far he provided hard money for construction and I provided work. (After we both agreed to find a contractor who will give us best possible timing.)

I negotiated with a contractor to finish his work on our rehab by the end of January. My partner signed the contract with that contractor and went out of town, became unavailable. Emailed me only part contract and nothing to sign.

In the mid time the contractor made the house look like a war zone. Took sheet rock out and left it all alone.

I finally got the contract in its entirety (had to put up a fight) and there are NO dates as to when the work is to be done, not January, not anything! Do I still have the obligation to pay for mortgage, utilities, etc.? (Actually I am becoming short to make all the payments because he also defaulted on other agreement, a hand shake agreement. There, I know I can do nothing since it was just a hand shake.)

import · January 15, 2001, 9:39am

Re: rehab partners vs. mortgage payments - Posted by Ed Garcia

Posted by Ed Garcia on January 15, 2001 at 10:39:21:

Anna,

There is no question that your partner has made a judgment error in choosing this contractor, as well as the way he wrote up his contract. However that has nothing to do with the lender who lent you two the money. I’m not sure what you mean when you say, “he provided hard money for construction and I provided work”. How could you do that from NY? Who signed on the loan? If the loan is not in your name and you just helped your partner find the deal or showed him how to structure the deal and you want to get out of it, that’s one thing. If you’ve singed on the loan, that’s another.

You also make mention of how he faulted on the other agreement, and then mention that it’s a handshake agreement. Anna, I’m sorry you’re not making yourself very clear. My suggestion is if you are disenchanted with this deal and your partner, and have not signed on the loan, then give your partner your 30% and walk. If you have signed on the loan, then you’d better work this thing out.

Ed Garcia