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  1. #1
    Join Date
    Feb 2011
    Posts
    3

    Default May Get Sued on Real Estate Deal Gone Wrong

    My question involves real estate located in the State of: michigan

    i bought an investment property with my friend/business partner to fix up and sell in 2005.

    my business parter paid the down payment and was to perform much of the work and act as general contacter. He is skilled in carpentry and design.

    my father put the financing in his name as neither myself or busness partner had income at the time.

    my business partner never performed the work and started working on a more lucrative project.

    i used my personal funds and credit cards to complete the renovations.

    the bottom fell out of the real estate market and the house couldnt be sold.

    i would estimate the house is 150k underwater at this point.

    at one point i was able to refinance my father off the loan and removed him from title.

    the loan is in my name and the title is in my name only.

    i consider this home my primary residence. basically i'm stuck here under a mountain of debt. i make timely payments and over all like the house.

    i have also given most of my friends money back. he feels i still owe him 7k. i disagree.

    he says he is going to sue me and my father.

    i want to know if this is possible and also if there is any action i should take to protect myself and my father.

    there has never been any contracts or any legal documentation of our plan to remodel and sell the house.

    thanks.

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: May Get Sued on Real Estate Deal Gone Wrong

    You gave back "most of" this person's money, presumably meaning you concede you still owe him money - just not the $7,000 he believes you owe him. So... negotiate.

  3. #3
    Join Date
    Feb 2011
    Posts
    3

    Default Re: May Get Sued on Real Estate Deal Gone Wrong

    Thanks for the reply. Yes. He put down approx 21k initially. I have given him approx 15k. My issue is, he was to provide renovation funds and labor. He never did anything so, to protect my father, since it was all in his name, I used cash and credit cards to the tune of 70k to get the house fixed up. Since I am not skilled in this sort of thing, it took longer and cost more than it would have. I didn't give him all of his investment back. His investment, like mine only smaller is lost. My question is does he have legal grounds to sue me and/or my father? Also, I have no money to give him.

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