Private lending in land development

[Kamlesh Kukreja]

I did a investment lending to a company for land development project. They offered a 20 % interest premium and 5 % profit sharing (i know too good to be true and there is something wrong). I didn't realize it but they did pay for 2 years (40 % capital returned). They are now not paying interest and the capital. What are my options at this time- specifically Can i place a lien on the land without a court order? there are 2 liens already on the property - bank and a private lender.

What are other recourses

1. Work with them - have tried for the past 9 months. no move yet

2. Legal action- no attorney is willing to take this on? any suggestions would be appreciated.

Thanks

[Brandon Croucier]

Honestly, if you lent someone money with a handshake and no liens. You are SOL, take it as a learning experience.

[Kamlesh Kukreja]

We have a contract but no collateral. Active till the end of this year. 

[Kamlesh Kukreja]

I do understand that I screwed up and am taking it as a learning experience. The learning can keep going as to what can be done in such a situation in future. Thanks

[Brandon Croucier]

Quote from @Kamlesh Kukreja:

We have a contract but no collateral. Active till the end of this year. 

 Well if you have a contract they are not living up to, then you need to serve them. There has to be a lawyer willing to do it; call every lawyer you can, I bet you can find one!
Best of luck!

[Stuart Udis]

I am afraid since this appears to be unsecured there wouldn't be an avenue to place a lien on the property. Do you at least have membership interest or was this an entirely unsecured loan? You can pursue a judgement against the property owner for non performance under the loan agreement terms which would come up on a title report when they go to sell or refinance the property since a judgment search would be completed against the seller but that takes time and money. Have you offered acceptance of your initial capital bank in return for a release and waived rights to the accrued interest? That may be the most practical resolution but if they stopped paying interest they may be struggling with liquidity.