Updated about 7 years ago on .
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Should I file a notice of interest aka memorandum of interest?
I invested over $90k in two rehab projects with a partner. I'm acting as the silent cash investor but with my rehab experience I've put in my two cents and called some of my contacts to work on the house. The first house sold and I didn't get my share of the profits because my partner said she didn't make enough from the sale. I just got my principal back with an IOU for the profits. We just completed the second rehab and it's currently on the market. The contract between us says that I have no claims to the property and that I'm a silent investor. With that being said, I want to make sure I get paid all what I'm owed at closing as promised. Am I able to file a notice of interest on the property? I really have no recourse other than to file a lawsuit for non payment. Any suggestions?
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In my non-attorney way of thinking, if you participated in the construction/design and had your crew doing some work, it might be a stretch, but I'd consider a mechanic's lien.
Is the 'IOU' they gave you in the proper form of a promissory note? Was it notarized? If so, you can record the note, OR a memorandum of the note; but don't think that will really do much good either.
Get thee to an attorney. Remember, mortgages, notes and contracts are the tools of the 'silent partner' trade. Learn how to use them.
From your post, it sounds like you will be fortunate to get all your principal back. Profit? Perhaps the profit will come in the form of education about what not to do when lending money.