Wa hard money lender/ wants a do not compete signed.
I quit my full time job seven months ago to start a business with a financial partner flipping houses. It's been a slow start getting systems in place starting out but are currently about complete with our third project. As a LLC we need to sign a operating agreement so I can write things off on my taxes. He wants me to sign a do not compete in the agreement saying I won't flip outside the company with other investors.
So here is my problem... my two partners are only wanting to use cash for everything we do which limits us to only three on the books at a time split three ways. I am wanting to start creating a rental portfolio for myself and flip several more a year with a hard money lender to help balance my budget. Is it normal for money lenders to use do not compete clauses in there paperwork???
Any thoughts or advice would be grateful.
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Jay Hinrichs
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Jay Hinrichs
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I think you confused.. I have been lending hard money for close to 35 years ... I have NEVER heard of a lender asking for this type of language.
this type of language would be common between your partners in the LLC> although most have a carve out to allow you to do any business you want.. I know mine all have that language
Non competes are generally used by companies and employees as well.
like I said I think your confusing a few things.
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