NEED HELP!

Hi,

I’m a first time investor and just brought my first property but need some help. I closed the deal and walked with just under 20K. Everything was going well, the rehab job was costing a little more than expected, but we were managing. Another fellow investor that I had met some time ago asked me for a favor. He needed 10K to put down on a foreclosure. He said that he would give it back the following week, he had a couple of closings where he was pulling cash and besides, I would make 5K back which would put extra money in my pocket for the rehab job. It’s been two months. He says that he hasn’t closed on any deals, but has put in offers for new purchases. I’m late on my mortgage, along with many other bills, and don’t know what to do, it was only supposed to be a couple of days. I trusted him because if it wasn’t for him, I wouldn’t have gotten this house or the money. He gave me some money for my VOD, which I returned to him the following weekend.

This is my first deal, and I’m learning a lot of hard lessons. Please help me with this; has anyone been in this situation? I was thinking that since he used my money to put down on a property, I technically have interest in that property. Can I put a mechanical lien on the property? I’m at my whits end here, I’m thinking about getting a lawyer. Any help or suggestions would be of great help. Thanks in advance.

-The First Timer

I am not going to tell you that Real Estate is a huge Risk, I think you already know that. But I will tell you that you need to get to the bottom of what is holding up his closings. Talk to him and find out exactly which property is supposed to close first and what do they need to finish that deal out. Tell him you need to get your mortgage payment in even if it means he gives you a thousand at a time. DO NOT let your mortgage fall behind at all costs. And I would not hire an Attorney. That would just mean “game on” to most people. The only one that will make $5000 in that deal is the attorney.
Good Luck and I am sorry you are in that position. I know it sucks.
Hang in there :bash: