​I NEED ADVICE or my first rehab

[Hugo Parra]

I NEED ADVICE. 

I met a real estate flipper two years ago and have had decent contact with him since then and just about 2 months ago he asked if I wanted to invest some money into a home that he would go halfs with me on the profit of the flip. He knows a hard money lender and has all the experience. I am putting up $35,000 dollars to flip this home. He told me I would be on the title of the home and would sign a contract agreement with me. Today he called me and told me that he would make a very detailed contract with me but would not put me on the title because the home has to close in less than a week or it will go into foreclosure, and redoing the tittle to add me is a long process. I am nervous about just doing a contract and not being on the title, what do you guys advice me to do?

[Howard Lawton]

I can only speak for myself.....I am a newbie real estate investor but have a legal background.  I just wouldn't do it...plain and simple.  If I'm not on the title I'm not interested...AT ALL.  

You could always take a first mortgage but would you really want to go through the foreclosure process? Who would get the proceeds from a sale without a mortgage?....good luck chasing down your money.    I think it would be a big mess especially with the business relationship you have with this person.

By the way....without control of the money or asset that "detailed contract" could become basically worthless without some collateral behind it.  Ask yourself....any chance a bank would do this......absolutely not.  

Also remember....suing someone who needs your $35K means it's unlikely he has any money and attorneys are very expensive.....just a guess....ask him for his credit report....you'll probably never hear from him again.....I could be wrong. 

My 2 cents