Too much money from the money lender/investor

[Ralph Noack]

Well, this is awkward.

We just signed up a new investor for our multifamily investment projects to fund the construction side of things. Verbally, the investor agreed to invest $200,000 with us for 2 projects this summer. To be paid out to us in 3 installments as we needed the money to fund the projects. We told them to use their lawyer to draft up the agreement (which may not have been the best thing, but we were thinking that their lawyer would look out for their best interests. In hindsight, we should have at least spelled out what we needed in the document. We certainly shoulder most of the blame for the misunderstanding).

So the financing deal closed today (a week late because their lawyer's office screwed a few things up along the way). It closed after hours (the money was deposited after 6 pm on Friday). And we go to check the account & they deposited the entire $200,000 into our account, all at once. We were supposed to get installments as needed, and it was suggested that it would be $60,000, $70,000 & $70,000 or something similar. And we certainly don't want it all at once because we're paying 12% on the money.

So now its Friday night, lawyer's offices are closed & I'm sitting on a whack of cash that I don't want.

Looking for suggestions from the BP community. What would you do? Perhaps the right question is, What should we do?

(What would you do? is also an interesting question, however, I'm here looking for solid help, not entertainment.)

I'll need to come up with something by Monday. Let's see what BP can come up with.

Thanks

FYI we are located in southern Ontario, Canada

[Stephanie Medellin]

@Ralph Noack  What does the agreement say?  If it says the first installment is only supposed to be a certain amount, notify the investor and his or her lawyer, and arrange to wire back the amount that was sent in error.