Investing with a friend

[Jan Styrczula]

My buddy just approached me with an offer to invest with him in buying foreclosures, he is a GC and he has done house flipping before, he wants me to invest 30K-50K of my own money and use it to get a 6 month rehab loan from a hard money lender at a little over 11% interest, after the House was finished we would split 50/50, he would also add me to his LLC that we would use for that future buy, the reason I’m thinking about investing Is bc I own my own business which will bring 200K this year in gross profits, the down side of my business is that I work 12 hour a day 5 days a week, and I feel that I’m slowly burning out. What do I need to do to prepare before I invest with him?

[Antoine Martel]

@Jan Styrczula Make sure that everything is laid out in terms of roles and responsibilities. You do not want this to ruin your friendship. So you should both stay in your own lane. Since you’re using hard money. Make sure you know who will be signing on that loan as the person who does will be personally responsible.