Posted by JHyre in Ohio on November 02, 2001 at 06:16:46:
Findlay, though I still go through Cleveland to visit parents in Youngstown. Research court records for lawsuits and judgments and possible criminal activity, get references, search property filings for purchases under his name or any entities that he discloses as owned. And “ask around” at investors meetings…the grapevine is most useful if it has wind of him.
John Hyre
Credit only general partners Good or Bad ??? - Posted by John Sigmund
Posted by John Sigmund on October 29, 2001 at 21:02:07:
I have an oppurtuinity to work with an experienced real estate investor as a credit only partner .He is also a morgage broker. He makes a deal on properties from bank Reos . My credit is used to purchase the property . My name is on the title and the bill comes to me . The properties are bought 0 down . Ex: buy 60k appraise 80k sell 100k . Money is put in escrow for the repairs and the reserves (6 months )I get a check each month from the reserves for the morgage payment from a joint account. He sets up the repairs and has buyers ready and waiting so things should go fast .He gets 50% profit I get 40 % and an asssoiciate gets 10 % ( he does some of the office work ) I am considered a credit only general partner .It is a general partnership . I understand why he needs me . Is this a type of investing that is done ? Is it good or bad ? Is there any articles on this ? I dont see or hear of people doing this . He has a fairly comprehesive legal document describing how the partnership works which i will have my lawyer read first before signing . Is a general partnership like this good or bad ? I have not been able to accomplish this on my own because of time . I will also be learning as we go . Your guidance on this is greatly appreciated .
John
Re: Credit only general partners Good or Bad ??? - Posted by JHyre in Ohio
Posted by JHyre in Ohio on October 31, 2001 at 06:26:30:
An attorney should review the document, especially for surprises. Also, you need to thoroughly research this guy’s history, especially of partnerships. Becoming a partner with someone you do not know must be very carefully done, because it’s much like a marriage…long-term, expensive and nasty if things do not go well. The kind of deal you describe is frequently done, though I personally would want 50% of the profit for my investment.
John Hyre
Re: Credit only general partners Good or Bad ??? - Posted by John Sigmund
Posted by John Sigmund on November 01, 2001 at 19:47:16:
John
Thanks for your time . Where in Ohio are you located ? Im outside Cleveland in Bedford Ohio . What types of things should i research or be looking for With this possible partner ? Is there anything i can check to make sure he’s legit or should i focus more on the contract and make sure that it has everything in it to protect me from risk . I do have an appointment with my attorney . Thanks again John Sigmund