Grounds for Leins
I recenty met an investor who was looking for someone to team up with in buying investment property and building a company together. In the 3 months that we worked together we aquired 2 rental properties that were in foreclosure. These properties were purchase "subject to" and put into my name because his credit and income/debt ratio would'nt alow him to get financing. Now, at the beginning of our relationship we had discussed on splitting everything equally including expenses, rental income, cash out, re-sell profits, etc. We also discussed forming an LLC which has not happened yet. Now I will get to my point and question. It turns out that this gentleman has some odd business practices and ways of doing things that I don't approve of. I don't wish to deal with him anymore and am going to cut ties very soon. Although we verbally discussed our future business plans we never had any contracts drawn up or papers signed stating any such plans or agreements. He legally has no ties to these properties so my question is, if I cut ties with him, would he have any solid grouds for place leins on any given properties that I own just for the sake of being ugly. His only involvement with these properties was finding them and negotiating with the home owners in my behalf. I handled the financing and like I said before the deeds and mortgages are in my name. What grounds do people need in order to place a lein on another persons property.
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[ Edited by dandaman on Date 01/18/2003 ][ Edited by dandaman on Date 01/18/2003 ]
dandaman,
Glad to meet you.
Well I probably have said many times partnerships on the whole usually do not work out, the greed factor usually sets in.
Your question really should be asked of an Attorney, I would strongly recommend you see one right away.
But look on the brite side, Subject To investing works great, you know how to do it, only from now on do it alone.
Welcome on board this board, this will work out fine for you, just chalk it up to lesson learned.
John $Cash$ Locke
Thanks John, I have gained some valuable insight on purchasing property subject to and will work alone from now on. I will call my attorney on Monday and I'm sure everything will be ok.
I too was working with someone who I found the properties. No money at all or repair money was put out by this individual.
However, He filed a lien on the property (texas). Although we had no partnership contract and no money was every invested by him.
Now I to am in need of how to get this lien released for a ridiculous amount.
Does any one have any advice?