Fund An Investor's Deal
A fellow investor presented a short-term investment opportunity to me. She asked that I provide 100K to help with the acquisition of a fully occupied 4-plex for a period of 3-6 months. Consequently, I'll receive 1.5% per month. She is also putting up 20K of her own money. Total acquisition cost is $400K. Bank requires 30% down.
My question: If I'm not paid, what recourse do I have? Considering the bank will be financing the deal, I will have a junior lien position in this deal, correct? Therefore, I couldn't commence any foreclosure procedure could I? Looking for some input on this. I would like to do it, but I just want to know what recourse do I have being in a subordinate position. Thanks in advance.