Protection on Investments

[Jane Park]

Hi. I am still very new.  I have no deals but I have been in contact with a contractor/developer in our area. Through him I have been presented an opportunity to invest into a multifamily development.  Permits are approved and ready to be issued after payment of fees. Lender is underwriting the deal.  We are told it is a 12-18 month investment with a 30% return for 12 months and 45% return if it extends to 18 months.  What do I need in a contract to protect myself if I move forward and what else should I know or be wary of? I am putting in a call to him tonight to get more info. What else should I ask him?  He has sent us the brochure of the property but this is all I know thus far.  Any advice would be appreciated! And also if anyone has a recommendation for a real estate attorney in the Denver Metro Area that would also be amazing!

[Bill B.]

Why did they choose you? Why didn’t they offer “only” 20%, that would be very generous. Please only invest money you can afford to lose. If there’s a lender involved you aren’t going to be in first position. There’s at least one new thread going around by a plaster that’s going to lose all their money as the builder spent the money and never started and the land is going back to the seller.