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lillyalise214 · Nov 4, 2007, 03:13 PM

Is it a good idea for me to invest in a couple rental properties with a secret partner? He has the down payment for the properties, but does not want to be listed on any of the documents. Will this turn out to be a good thing or should I complete the investments myself?

ScottGem · Nov 4, 2007, 03:15 PM

As long as you have a written agreement between you, there is nothing wrong with him using you as a front man. Unless there is some intent to defraud on his part.

jillianleab · Nov 4, 2007, 03:42 PM

I suppose it depends on why he doesn't want to be listed on the documents. Is this a person you know and trust? Does he not wanted to be listed as a landlord, or does he not want to be listed as an owner of the properties?

Draw up a contract (it will be well worth it to hire a lawyer to do this) and detail EVERYTHING. That way if things go south, you are protected, or at least know what is expected of you.

Legal Bod · Dec 5, 2007, 10:00 AM

THE ANSWER IS NO!!

You need to consider Money Laudering, Unpaid IRS Revenue Taxes, and down the road repercussions. There's 1000os of good clean deals out there, so why get mixed up with a bad one. The word Partner is another way of saying trouble, or worse still emotional blackmail?

ScottGem · Dec 5, 2007, 10:03 AM

Originally Posted by Legal Bod

THE ANSWER IS NO!!!!!!!!

You need to consider Money Laudering, Unpaid IRS Revenue Taxes, and down the road repercussions. There's 1000os of good clean deals out there, so why get mixed up with a bad one. The word Partner is another way of saying trouble, or worse still emotional blackmail??

That's a very cyncial attitude, there could be many valid reasons, why someone doesn't want to be listed as owner of rental properties.

Legal Bod · Dec 5, 2007, 12:43 PM

THE NUMBER 1 RULE IN BUSINESS IS TO BE CYNICAL AND TO DISTRUST EVERYONE!!

Look at how many fat cat Lawyers there is out there. Your trust, kindness and eagerness to strike a deal is what keeps them happy. Being in business, especially Real Estate, calls for experience. But, in time all experience evolves into mistrust of others. Sadly this is a fact. It strikes me your proposed partner has got bad references, he knows that banks or mortgage companies won't do business with him, in fact quite the opposite, so he needs you and your "clean prior trading background to get finance - he can't get". What will happen is; he keeps the good deals for himself and runs off leaving you with the poor deals, the headaches and the ruined financial reputation. And 10 out of 10 selfmade millionaires will agree with me on this.

My own Golden Rule is never to deal with anyone who mentions Jesus within 30 minutes of first meeting him or her, who swears on bibles, and his own Mother's Grave. I shun all good Christians and God fearing folk like the plague. And guess what I sleep nights. You see they are part of a trend, and it's a bad trend to have secret partners and investors who go in for pyscho-babble gleaned from others.