Just to explain briefly, just sold a house in June that was flipped with a joint venture partner. His main responsibility in the project was financial while mine was project management and more hands on. Long story short, he got a hard money loan and had mentioned using what capital he had set aside personally for any budget overages as we had purchased the house prior to seeing what the inside was like. Come to find out after the house had sold that he had taken it multiple lines of credit leaving thousands owed in interest and late fees. On top of that, he had not discussed with me the price to tell our agent what to list the house for as well as didn’t not discuss lowering the cost of the house by roughly 50k just to get it done ASAP. We are still trying to hammer out details as I had originally came up with a profit and now he is saying we are in fact in the whole. I’m still working on going through paperwork with a fine toothed come but am at a loss of what to do given the situation has gotten kind of messy.
Well, the results of a poorly organized agreement and poor communication between partners. Do you even have a written agreement? If all the other loans, interest, fees, etc were for the flip itself, then they are “legit”. How can 2 partners never even discuss the listing/sale price?
We do have an agreement and in that agreement it states that all major decisions are to be discussed and “voted” on by both parties. The prices both times were listed by the agent per my partner without my knowledge. As for the interest and late fees, the only documentation I have from him shows those late fees and interest only. No indication any of those loans or lines of credit were used for our property bills/remodel. Just that the loans exist and there is latefees interest owed
Perhaps consider having a chat with a lawyer as to what legal recourse you have?
@Stephanie B. Do you know these numbers?
Purchase price plus closing costs
Selling price minus selling costs?
Take the 4th number, subtract the other 3, that is your profit (or loss).
All of the other stuff is just fluff.
If you didnt know what was happening, that's the price of education