Posted by Barry (FL) on April 06, 2006 at 24:35:06:
JT said, “I part with my money very hastily”
ROTFLMAO!!! 
How do I protect myself? - Posted by Brian_wa
Posted by Brian_wa on April 04, 2006 at 13:04:20:
I partnered up with someone to buy the house. He put it under his name and we signed a partnership agreement. While I’m fixing it up, is there anything I can do to protect myself just in case he decided to sell it from under me?
Brian
Why did partner put it in his name…? - Posted by JT-IN
Posted by JT-IN on April 04, 2006 at 18:22:25:
There are usually reasons for such action… such as it is HIS money… and YOUR sweat equity, for fix-up…?
So you have a partnership agreement… how is it that the two of you have become partners…? Did you each contribute funds equally, or is there another arrangement…?
The reason why and how you became partners will likely outline why the property is in your partners name… Elaborate on the details, and there may be other suggestions of how to protect yourself, depending on the relationship…
Re: How do I protect myself? - Posted by Ken-Orland
Posted by Ken-Orland on April 04, 2006 at 17:15:59:
You can file an Affidavit of Interest at the Courthouse. Be sure to include the legal description of the property so that the Affadavit is properly referenced. The Affidavit will cause a Title Company to contact you when your partner goes to sell the property and the new buyer is obtaining title insurance.
I do agree though, next time make sure your name is on the Deed.
Re: How do I protect myself?-put your name on deed - Posted by rdlazo
Posted by rdlazo on April 04, 2006 at 15:02:47:
Let him sign a deed to the fact that both of you own
the property what ever % of ownership you agreed.
Next time if you are a part owner of a
property that is what should show on deed or ownership, it can only be
sold or mortgage with your signature on it.
Your name not being there is very risky,
partner can sell or mortgage it wothout your consent .
Rudy
Re: How do I protect myself? - Posted by Kristine-CA
Posted by Kristine-CA on April 04, 2006 at 13:13:33:
What house? Is this same house as the probate deal below?
Re: Why did partner put it in his name…? - Posted by Brian_wa
Posted by Brian_wa on April 04, 2006 at 18:54:08:
He and I have known one another for about 4 years. He’s a great guy (fireman) and a fantastic investor who buys many houses each year. He found this deal and wanted to partner up with me. The agreement is that he’d buy the house and I’d put out the money and resource to manage the rehab process. Once the house is finished, we’d sell it and split the proceed. Right now he has sole ownership.
I trust him but then I also got screwed by another so-called good friend about 2 years ago so I’m a little afraid.
Brian
Re: How do I protect myself? - Posted by Brian_wa
Posted by Brian_wa on April 04, 2006 at 13:18:33:
Different house. I’m actually working on 6 different deals that I have already secured. The probate one and this one other short sale are the only 2 that are still hanging out there.
Explain more please… - Posted by JT-IN
Posted by JT-IN on April 04, 2006 at 19:04:55:
“The agreement is that he’d buy the house and I’d put out the money and resource to manage the rehab process.”
“He’d buy the house” means exactly what…? He found the house, and paid NONE of the purchase price…? Or he paid part/all of the purchase price…?
“I’d put out the money and resource to manage the rehab process” means exactly what…? You paid for the house, or you are paying for the rehab expenses…? Not clear on the details here…
Your business is your business, but in order to offer reasonable advice I need to know the exact details of who is doing what here… It is still too fuzzy for me to follow… yet. Please explain… At the end of the day, or project, how much $$$ do you expect that you we EACH have invested into this project…? (Not counting any labor as hard dollars).
Re: Explain more please… - Posted by Brian_wa
Posted by Brian_wa on April 04, 2006 at 19:38:57:
Sorry for not being as clear…
This guy found the deal. He bought it and put it under his name. He got a private loan to finance the deal.
He and I then decided to partner up as he has too many other deals to take care of. I would put out about 40k to rehab the house. Once it’s finished, he and I will sell it and split the profit 50/50. I’d get back all my expenses of course.
We each expect to make about 40k to 45k off this house.
Brian
Ok, makes sense now… - Posted by JT-IN
Posted by JT-IN on April 04, 2006 at 19:51:08:
Brian:
Since the property is now in your partners name, that is how I would suggest leaving things. However, my suggestion is that prior to you investing much $$$ into this monster, you should have your partner sign a Performance Mortgage, which you should then have recorded… This way at the time of the sale, you will then have to sign off, as well as provide a payoff or satisfaction, and proceeds could be deducted directly from the HUD-1 at the closing of the sale…
Good luck and it sounds like a god deal, as long as the profit numbers you quote come anywhere close… Hope it all works out for you.
JT-IN
Re: Ok, makes sense now… - Posted by Joe
Posted by Joe on April 05, 2006 at 11:39:21:
Well, the deed is already in the other guy’s name, so you can’t get out of that situation. But once he decided that Brian_WA should do the rehab, why couldn’t he transfer the deed to Investor_Friend and Brian_WA as a Joint Venture?
Sure, can do… - Posted by JT-IN
Posted by JT-IN on April 05, 2006 at 17:01:11:
But that costs money to do so… Transfer Tax, recording fees, and other fees. My suggestion of the Perf Mtg is simpler, for one… and here is the other side of it…
Right now, Brain has NO money invested into the deal. So if I were the otehr investor who was asked to sign a deed, naming both parties, I wouldn’t be all that hot on doing so… Once he gets some money invested into the deal, via rehab costs, then I would expect to sign the Perf Mtg… (or Deed, but Perf mtg is better if I am the other investor, due to the circumstances of partial sweat equity)… I part with my money very hastily… and control over the money the same way… hence the advice… looking at it from both parties perspective.
JT