Updated about 10 years ago on . Most recent reply
Partnership protection
I could use some ideas from more experienced investors in how to protect myself in this deal.
My potential partner is closing on a house, which he'll own free and clear with insured title but needs funds to rehab. I would fund the entire renovation (which is about equal to the value of the house as it sits). We would fix it, sell it and split the profits 50:50. We will, of course, have a written agreement. Since he holds title to the house his interest is protected. To protect myself should I just file a mechanic's lien when the work is finished or file a lis pendens before hand since I don't know the actual amount of the repairs. Or is there a better way to do this. By the way, I will personally pay the contractors and suppliers so I control all rehab funds.