Appropriate Legal Form
I am looking to invest/lend money to a friend of mine who is buying a condo and rehabbing and then selling at retail. He is lining up all the financing to secure the condo and just needs help with the rehab costs. I will be lending him $40,000 to be paid in installments during the rehab to cover rehab expenses. Upon sale he will pay me 25% interest on my money as well as 25% of any residual equity/profit in the property. Wont a Promissory Note be able to protect my interests here or should I be looking at something else? Thanks a Bunch!
A sure way to break a friendship is when money or another woman/man gets in the middle. Get your name on the purchase agreement stating the conditions. The Attorney will use the right wording once you both agree. Upon the resale of the condo you will get your $40,000back at a smaller % rate but more from the www.profit.of the sale.How does that sound?
Has your partner told you the anticipated period for the turn over? months? years?