How do you qualify a potential note investor for a JV partnership
Hello all.
This is my first post here. I have done my 'due diligence' in researching the note business. Knowing myself, I have determined I'd like to purchase a performing note in the state of FL as a JV. I like having the mentorship and enjoy learning from an investor. I have already met some wonderful investors that I trust, but I am trying to go into this investment with my eyes wide open.
With that said, what documents/background checks/legal agreements does a JV need to review to ensure a quality partnership with an investor? It feels odd to give someone (or an LLC) 15k+ without feeling very vulnerable. What questions would you ask your potential investor? Here are some thoughts I've cultivated so far. I'd love to hear your thoughts as well.
1. Can I see your books?
2. Can you send me a sample monthly report you provide your investors.
3. Who's responsible for contacting the borrower if they don't pay and the note becomes non-performing
4. Do you provide 'worst case scenario' information (ie foreclosure costs and timelines for the state of residence?)
Basically, how do I ensure I'm not getting bamboozled. TIA.