Updated over 7 years ago on . Most recent reply
Working for Shares and lending credit
Hello,
I've recently come across an opportunity to get into a group here in my local market. The luck i've had with getting serious investors behind me to fund my own deals has so far been slim to none and I figured it would be a good learning experience to get in with someone that does it full time that can teach me the ropes. This company owns around 120 doors and growing in the North Minneapolis market, the deal he presented me to start is an hourly wage that applies towards shares in the company for my labor fixing properties with the goal of moving towards the investment side. While I won't be taking this on full time and not receiving a steady paycheck from it isn't an issue, I'm wondering if anyone has done this, or if I can get some ideas on the upside/pitfalls of doing something like this. Are there any clauses I should have in a contract for payouts/etc? The second part of the deal is lending my credit to obtain 30-year notes on new acquisitions and then quit claim deeding the property to the company. For doing this, I'd get a variable percentage of the origination loan amount. Obviously, as most people, my credit is important to me but I'm wondering if doing a quit claim deed would protect my interests or if there are any extra steps I should take? Any help would be greatly appreciated as I'd like to protect my interests for the future.
Victor
Most Popular Reply
@Victor Lebegue F**CK NO! This is fraud! They are asking you to commit fraud. You need to run not walk away. You can't even work with a company that asks you to do this "The second part of the deal is lending my credit to obtain 30-year notes on new acquisitions and then quit claim deeding the property to the company. For doing this, I'd get a variable percentage of the origination loan amount."
People went to jail for this 10 years ago. If you get involved in this you will be blackballed at the best and if its big you can be investigated, and arrested by the FBI. This is a Federal crime and it is a Felony.
- Tim Swierczek
