How Can I better structure a International Partnership? International Investor with $1.5 Millions to invest? scam or not?

17 Replies

I am a beginner Real Estate Investor operating in the State of Pennsylvania. throughout friendship and networking I have developed local as well as International Connections and they requested me to fund me a Personal Loan of $1.5 Millions for a 10% fixed Interest for 5 years with a Balloon Payment at the end of the 5 years, The Funding will be used for my Real Estate Investment Business (Buying & Selling Houses, Buying & Holding Houses ) . He sent me a Promissory Note. i'm planing on creating an LLC and a Operating Agreement spelling out our partnership. I want to find out the Legitimacy of the Funds and the partnership since he's located in Nigeria. Also wanting to know how can i better structure the agreements and paperwork needed. Any advice will be Highly Appreciated.

Run forest, run!  This is probably their sister business to the lottery processing/notification business.  You will be milked for all kinds of processing, documenting, etc fees, as much as they can get out of you.....and the loan will never happen.

@Wayne Brooks   Understood.  In the event that you were in my situation, how would you better structure a deal with an International Funding Partner? 

@Rey Perez  

Let me ask you one very basic question...what did these people do to vet you?  What kind of checking did they do on you?  Did they ask for copy of your business plan?  Did they ask to see your marketing plan?  Did they ask to see a portfolio of the deals you've done?  Did they ask for the names of supplies, contractors, partners, references in general?  Did they ask for the information you would expect to be needed to run a background check?  Have you ever met these people in person?  Do you have a phone number where, when you call, they actually answer the phone and don't just let it go to voice mail and then call you back.

I'm guessing the answer to most of those questions is "no".  (I could be wrong.  That happens about 399 times every day!)  But, I'd probably not lose money if I were to place a bet on it.

If none of those things took place, why would they want to give you $1.5 million dollars?  You're a stranger to them.  Also, Nigeria is a hot bed of development.  Their money will go farther there than here, so why would someone from Nigeria want to invest in the US?  Dubai I understand.  Australia and Canada I understand.  Their money goes farther here.  It's the same reason people from CA want to invest in Texas.  But, Nigeria, really?

Originally posted by @Rey Perez :

I am a beginner Real Estate Investor operating in the State of Pennsylvania. throughout friendship and networking I have developed local as well as International Connections and they requested me to fund me a Personal Loan of $1.5 Millions for a 10% fixed Interest for 5 years with a Balloon Payment at the end of the 5 years, The Funding will be used for my Real Estate Investment Business (Buying & Selling Houses, Buying & Holding Houses ) . He sent me a Promissory Note. i'm planing on creating an LLC and a Operating Agreement spelling out our partnership. I want to find out the Legitimacy of the Funds and the partnership since he's located in Nigeria. Also wanting to know how can i better structure the agreements and paperwork needed. Any advice will be Highly Appreciated.

The catch will be for you to open a bank account in your / your business name. Which obviously requires some money to put in the account. The ''Nigerian lender'' will need to have access to that account to ''deposit'' the funds. Yea and as soon as you send the account info to them they withdraw the funds you've put in and so long. SCAMTASTIC.

Kudos,

Mary 

Originally posted by @Hattie Dizmond :

@REY PEREZ 

Let me ask you one very basic question...what did these people do to vet you?  What kind of checking did they do on you?  Did they ask for copy of your business plan?  Did they ask to see your marketing plan?  Did they ask to see a portfolio of the deals you've done?  Did they ask for the names of supplies, contractors, partners, references in general?  Did they ask for the information you would expect to be needed to run a background check?  Have you ever met these people in person?  Do you have a phone number where, when you call, they actually answer the phone and don't just let it go to voice mail and then call you back.

I'm guessing the answer to most of those questions is "no".  (I could be wrong.  That happens about 399 times every day!)  But, I'd probably not lose money if I were to place a bet on it.

If none of those things took place, why would they want to give you $1.5 million dollars?  You're a stranger to them.  Also, Nigeria is a hot bed of development.  Their money will go farther there than here, so why would someone from Nigeria want to invest in the US?  Dubai I understand.  Australia and Canada I understand.  Their money goes farther here.  It's the same reason people from CA want to invest in Texas.  But, Nigeria, really?

Thanks for the clarification.

The picture is way clearer now, and you are indeed correct the individual did not inquire about my Business Plan nor any References which I could have furnished upon request however they stated they landed on my website through an Investment Property my VA helped me advertised online.

Now, in the event that answer for all of the questions you mentioned above is "Yes".   How would you better structure a deal with a Funding Partner outside of the US?

Originally posted by @Mary B. :
Originally posted by @REY PEREZ:

I am a beginner Real Estate Investor operating in the State of Pennsylvania. throughout friendship and networking I have developed local as well as International Connections and they requested me to fund me a Personal Loan of $1.5 Millions for a 10% fixed Interest for 5 years with a Balloon Payment at the end of the 5 years, The Funding will be used for my Real Estate Investment Business (Buying & Selling Houses, Buying & Holding Houses ) . He sent me a Promissory Note. i'm planing on creating an LLC and a Operating Agreement spelling out our partnership. I want to find out the Legitimacy of the Funds and the partnership since he's located in Nigeria. Also wanting to know how can i better structure the agreements and paperwork needed. Any advice will be Highly Appreciated.

The catch will be for you to open a bank account in your / your business name. Which obviously requires some money to put in the account. The ''Nigerian lender'' will need to have access to that account to ''deposit'' the funds. Yea and as soon as you send the account info to them they withdraw the funds you've put in and so long. SCAMTASTIC.

Kudos,

Mary 

I appreciate the information.

That makes a lot of sense as well.

Now, Would there be a better way of structuring a deal where we can all Reduce the risk when dealing with International Partners? ( JV / LLC & Operating Agreement / P.P.M. / etc...)

Originally posted by @Rey Perez :
Originally posted by @Mary B.:
Originally posted by Rey Perez:

I am a beginner Real Estate Investor operating in the State of Pennsylvania. throughout friendship and networking I have developed local as well as International Connections and they requested me to fund me a Personal Loan of $1.5 Millions for a 10% fixed Interest for 5 years with a Balloon Payment at the end of the 5 years, The Funding will be used for my Real Estate Investment Business (Buying & Selling Houses, Buying & Holding Houses ) . He sent me a Promissory Note. i'm planing on creating an LLC and a Operating Agreement spelling out our partnership. I want to find out the Legitimacy of the Funds and the partnership since he's located in Nigeria. Also wanting to know how can i better structure the agreements and paperwork needed. Any advice will be Highly Appreciated.

The catch will be for you to open a bank account in your / your business name. Which obviously requires some money to put in the account. The ''Nigerian lender'' will need to have access to that account to ''deposit'' the funds. Yea and as soon as you send the account info to them they withdraw the funds you've put in and so long. SCAMTASTIC.

Kudos,

Mary 

I appreciate the information.

That makes a lot of sense as well.

Now, Would there be a better way of structuring a deal where we can all Reduce the risk when dealing with International Partners? ( JV / LLC & Operating Agreement / P.P.M. / etc...)

My opinion is for you to learn your own backyard first. Perfect getting deals closed in the housing market where you're located. Then work your way outward within the USA. After a while of gained success in this country, if you still want to go international then go for it but for now as a beginner keep it American. You have much to learn domestically. 

Kudos,

Mary

No beginner starts with an International Investor who they don't personally have a relationship.  Just doesn't happen.  You are barking up the wrong tree.

@Eric Michaels    @Wayne Brooks    @Rey Perez  

Hey guys I got an email from this guy who is the The director of the Prize Award Department at the Nigeria Public Lottery. You wont believe this but its actually true, I WON!! he said I won a million dollars! we chatted over Skype and he said it was confirmed!

but he said due to transfer fees he needed to send a check for $1.5 million and needed me to just foward back the other $500k minus the transfer fees. 

Anyone have any good recommendations on how i go about getting my big pile of cash? oh and how long it typically takes would be helpful.

I figured this is the perfect place to post this question

Thanks! ;)

Rey,

The Nigerian entity is a scam.

The first question I ask when a foreign investor deals comes my way is, are they in a reputable part of the world?  I recently had an investor come to me stating that he had significant assets.  He showed me a foreign account that stated he had 40 billion dollars in a trading account in his personal name.  My question is, if you are worth 40 billion dollars, then how come I never heard of you?  When is Forbes going to list you on their list?  It sounds too good to be true, then it probably is.

Mark

Once

Also wanting to know how can i better structure the agreements and paperwork needed. Any advice will be Highly Appreciated.

Twice

In the event that you were in my situation, how would you better structure a deal with an International Funding Partner?

Thrice

Now, in the event that answer for all of the questions you mentioned above is "Yes". How would you better structure a deal with a Funding Partner outside of the US?

And a fourth time

Now, Would there be a better way of structuring a deal where we can all Reduce the risk when dealing with International Partners? ( JV / LLC & Operating Agreement / P.P.M. / etc...) 

If you truly had a non-US investor willing to provide you with multiple millions of dollars you would hire an attorney and an accountant to set up the proper structures.  You don't, so its a moot point.

@Rey Perez  

FYI: If the investor is in Nigeria, it is lilkely a scam.  There is an extremely large % of the population here that are seeking to scam westerners.

I couldn't make it past the word Nigeria without laughing.  

@Isaac Essex  

I got it.  I laughed!  

On the topic of scams, has anyone read the story of the P-P-P-Powerbook?

If you built up $1.5 million in cash, would you just lend it to some beginner investor that you don't even know??? ummmmmmm no.

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