Having a dispute with a partner can you help?

1 Reply

I have a partner who owns land that is worth 2 million,  He has 1 million loan on it.

He is asking me to partner with him on the land to develop.  In order to partner with him he wants me to contribute 1 million to pay off the loan to be a true 50/50 partner on the land so we can develop it.

I don't have 1,000,000 in cash lying around so I offered to leverage one of my income producing properties as a lien to the bank which is worth about 1 million.

The goal is to roll over his 1 million dollar loan into a 5 million loan which we would share 50/50. 4 million of that would be used to develop the land.

He needs my income and assets to qualify for a bigger loan, and I feel like my 1 million of income producing assets would suffice in the form of leverage.

The disagreement is that he feels I am not bringing any money to the table in this scenario to make it a true 50/50 partnership.  Is he right or am I right?

  

Sounds like a partnership you should avoid. It sounds like he needs a partner but doesn't want one.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here