Rental Property Investor · Kent, WA · Member since 2014 · 83 posts · 27 votes
While partnering on deals, I had the young man sign a Non-Circumvention, Non-Disclosure and Confidentiality agreement. We agreed we would work together in June on my deals that come in and he would help me out for 50/50. He is in another office and sent a contract to a potential seller with his name only on the contract. Should I be concerned that my name is not on the contract?
How did you find out about what he did? Hopefully it was an oversight, but even if your agreement (contract) saves you this time, I would be careful of the possibility that he could continue this type of behavior going forward. You found out about this time.... but could he have done this before as well?
How did you meet this man? Is he somebody reputable? I would be wary of someone who engages in business activities, especially a contract, without including my name when we have a partnership in place.
The way I met this investor is, I noticed he had several ads for homes and could tell he is someone who is getting results. We met and I interviewed him and he interviewed me. We actually know a lot of the same people in business. Actually, everything is working out fine.
Before this, I had talked to someone who was trying to take advantage of my newbie status. Frustrating! So, my trust level is in protective mode.
So, in this case I think it's a plate full of newbie reactions.
Have you followed up with him since your post to get his reaction? Hopefully you're non-circumvention contract would protect you if need be. But is there anything that says he can't do some deals with you and some on his own with say his own separate company?
Talk to your partner and ask him to explain you what's going on. I agree with Mark, maybe his doing deals of his own besides your partnership deals. Maybe you have to clarify that with your partner, are all deals done within your partnership or can you both do individuals deals of your own as well? If he's violating your partnership agreement then I wouldn't continue doing deals with him.