Financial Agreement With Investor
I am in a situation where a co worker of mine wants to invest money with me in a pre-construction. He is looking for some form of agreement that shows that he has given me the money for investment and will get back his money when the property is filpped with his profit minus 20% my fee. Has any one done a similar thing. Please share your agreements or thoughts.
Is the co-worker going to be an owner on title or not? If he is not going to be on title, I would think you could crank out a very simple agreement that states what you have in your post. What you need to include is a clear description of what he gets paid and what you get paid from the proceeds of this venture. You might also include who makes the decision on contractual changes and choices with the builder that covers such items as what kind of carpeting, etc. (Maybe both of you need to agree) This should be a simple agreement since you are not doing any of the construction.
where is the pre construction?? Just curious if anyone else can get in?
In Miami Florida. Getting in on some condos under VIP status.
In FL, you may withdraw your offer in writing prior to the contract being fully executed. Fully executed means that all parties have signed and copies have been distributed to everyone involved.
You may fax them a letter that simply states that you are withdrawing your offer to purchase the has at ______ with a sales contract first dated ________.
You say that you "pur down" $5000. who did you make the check out to? you are suppose to make it out to a closing agent - NOT the seller.
Brenda
Always leave yourself some sort of contingency, be it property inspection, financing or something else.