I'm in urgent need of some guidance on the best way to approach this matter before pursuing litigation.
For context, I'm a silent investor who provides the rehab's renovation budget.
I'm working with a local Atlanta investor, someone I've known from corporate since 2011. We entered into our first JV in 2021. Aside from delays in getting the project to completion, the investor paid according to the agreement. I think the investor was struggling with too many properties and insufficient help to finalize the projects, which was understandable.
I entered into the second JV in May 2023 for a simple rehab that should have only taken 3-4 months to finalize. Before we entered into the JV, I outlined my strategy, which was to continue investing at the completion of every project with hopes of a new JV every 3-4 months.
This particular JV was structured to encourage a quick turnaround by increasing the rate of return if not completed and on the market by month 4. Month 4 came around, and every week, I was promised that the project would be completed in two weeks. This went on for months.
Right at the six-month mark, I started to do some digging and discovered that the investor was divorcing, and it was ugly. Based on the details from the clerk of courts, it appeared that the investor was attempting to hide assets and refusing to turn over documents, one of which was copies of all renovation agreements.
I also discovered that in addition to the renovation budget that I provided, the investor took out a loan with a private money lender for 120% of the sales price. Therefore, money for renovations was handled before I provided a healthy budget.
Just to let you know, the property was finally sold. He is now "claiming" that he took a $70K loss but has not provided any documents. He also communicated via call and text that he would make "me whole" but can only send me a portion of what is owed this week. Since Monday, I have been waiting on the initial payment that has yet to come. A wire was sent to my bank, and despite specific wire instructions and a screenshot of the account details, the wrong business name was used, and the wire was returned. Each day since Monday has been a new "banking" excuse.
I am at my wit's end with this. I cannot understand why someone would want to ruin a solid business partnership.
I appreciate any feedback anyone could offer; my goal has always been to approach this sensibly.
