Cash Investment Advice

[Ed Parker]

On Dec 29, 2016 we had the opportunity to do a cash investment on a property with a broker and her husband. We learned of this investment from a realtor that we were working with. The Realtor and the Broker work together. At the time of the investment, we were told it would be a five-month project at 2% a month. We signed via e-sign, a promissory note.

After we drove past the property several months into the project and were surprised to see through the walls all the way to the back yard, we learned that this property came with multiple violations which they are saying has delayed the project. We have had very few updates, and none without our prompting, on the work in progress. The project now is 14 months and is no closer to completion. I drove by just a few days ago and you can still see through to the back yard. The communication has now stopped completely. I went back to the realtor who helped put the deal together and he said he would call the broker after our call. She still has not contacted us.

We have come to find our that we lent to an LLC which we were told is not a good idea. The brokers husband is the one who signed the note. Only his name and signature are on the note. The broker and I had a phone conversation about 3 weeks ago, where she offered to cash me out. I needed to discuss that with the other members of our LLC and since then have left messages numerous times that have not been returned.

We have only the note. By the terms of the note we were to be paid at the end of six months with the possibility of 3-30 day extensions. No liens have been filed and no other actions have been taken as of now.

I like to get input on what the community thinks my next step(s) should be.