Investor in a Pickle - Posted by Jeff
Posted by Jeff on July 02, 2002 at 08:36:09:
I’ve got a retailing investor I know that currently has a land contract on a property he is trying to clean up and sell. Problem is he went in on this property with a buddy, who recently ran off with the repair escrow money they set up leaving him without the necessary capital to finish the job (not much of a buddy). He also does not have the time to do all the work himself. He is offering me 30% on my capital if I will give him what is required to finish the job (about $6k). The problem is twofold:
From what I understand, his partner is still entitled to half the proceeds of the sale, so after the net is broken down between holding his partner’s return and giving me my money, he will be negative.
I am not even sure if he can sell the property without his partner’s consent (even though the guy dashed with the cash).
Any insight? Anyway for this guy to be able to sell the property and/or possibly obtain full rights to profit on the funds of his criminal partner? Should I avoid any dealings with this situation like the plague?