Short sale in lieu of lawsuit

[Brian Schriedel]

A fellow landlord failed to keep property insurance on his LLC and one of his units sprung a leak and destroyed my unit underneath his... the damage is extensive and he mentioned possibly just signing the title of his unit over to me... Is a short sale the best way to go about this kind of transaction? And what other issues should I be looking out for ? My first question for him will be to see that his taxes are paid up to date. Thank you for any insight.

[Ralph R.]

Brian Schriedel I'm not sure if I would term this as a "short sale". I would be more inclined to term it as an "out of court settlement" and I would not do anything until I talked to a lawyer. What if he has a loan against it? If he has 20% equity and you have to pay the loan and repair your unit too he's not making you "whole" again. You would be getting 20% of his unit and repairing 100% of yours. You see my drift here?? RR