Lake In The Hills, IL · Member since 2015 · 1 post · 0 votes
I have a great joint venture partner I plan to buy a property with, using a good private money lender I know. While I trust the joint venture partner, I would like to have them sign an agreement stating they won't solicit the lender for other flips without me being involved in the deal. Is this a common practice and if so does anyone have a sample contract I could view?
Do you have a written partnership agreement? This is best addressed there. A partner 1. must be trusted and 2. has a right to know the financial aspects of the partnership, including who he's in debt to. He should also be able to communicate freely with a lender, but in accordance with your operations agreements.
This is best addressed with your private lender, if there is a reason you feel they shouldn't lend to the partner without you ensuring they are taken care of safely. Be careful and don't trash the partner, he is your partner. You can also bring up the fact that if the private lender puts the money out, you're kinda out of business, OTH, you need to keep the lender's money working! That's how you build loyalty with a private lender. :)