Private Money Partnering

Private Money Partnering Table of Contents
Find Out All You Need To Know About Private Money
Partnering And Joint Venture Real Estate Investing.

Finding Private Money Partners
How To Find Private Money Partners for Real Estate Venture Capital Using The Web And Other Resources

Testimonials About Private Money Partnering
Find Out What Investors Have To Say About The Information On The Private Money Partner Site.

Private Money Real Estate Venture Capital Glossary
Coming Soon. Terminology for Private Money Partnering And Real Estate Joint Ventures.

Private Money Joint Venture Real Estate Blog
CLOSED. For the latest news on Private Money Partnering.

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Come back to see what fresh information we may have on Private Money Partnering.

Private Money Partner Meetup Forum
Private Money Investors & proposers Can meet and find mutually beneficial partners.

Private Money Partnering Home Page
Introduction To How We Can Help You Find The Private Money That You Need.

When A Joint Venture Goes Wrong

Chapter Q (continued)

What Can Go Wrong?
What Can You Do When Things Go Wrong?

MARK: Gosh, Allen, when we went into this deal we did talk a little about the fact that real estate is not a real liquid investment. We've got money sunk into these projects. We've got contracts that are ready to be signed and closed. If we don't close on these contracts we'll be open to some lawsuits. There's really no way that I can write you a check for $100,000 because the money is invested in the projects that we outlined. What's your time frame? Is there some leeway here where we can try to figure out some
solution to your problem and to our mutual problem of what we're
committed to in this project?

ALLEN: I really don't want to miss the summer season. I really need the money now. In fact if you can just give me my principal back, you just keep all the profit and find another investor who can replace me. All I want is the principal back and I don't mind giving up the profit but I'd like to get the principal back as quickly as possible.

MARK: OK, I understand what you need. I'm not sure that on real short notice that I can find someone with $100.000 to just come in and take over with $100,000 to put in. I also don't know whether that person, be a he or a she, might have a real negative impact on the profit that we had projected. It's not just finding someone with the money, it's going to be finding someone who will lend it at close to the same terms and conditions. But I'll tell you, I'm willing to work on that and see if I can find someone. Is there any flexibility in your need, Allen? Do you need the whole $100,000 like next week or is there some way we could divvy it up and get it back to you over some period of time?

ALLEN: Well. I guess if I postpone leaving for a month and just spent the months of July and August on the Riviera, maybe I could get by with only $50,000. Do you think maybe if I could pull the $50,000 out in about a month, so I could take off for the remainder of the summer, could we work that out?

MARK: That's a lot easier to crack than the whole $100,000 at one time. I'd sure be willing to work on that and try to find another investor. I have a couple of other investors that I know, I have never talked to them about this project because that was your and my project and I didn't want them drooling over this, but I'd sure be willing to approach them here in the next day or two. There's the possibility I could find someone with the whole $100,000, but if
I can only find the $50,000, I'll work on the first $50,000 and then work on the second 50 after I get the first 50 freed up. Is that OK?

ALLEN: Yeah, I could live with that, and I'd be willing just to give the profit up if I could just pull at least the $50,000 out in about a month. I think I could live with that situation.

MARK: OK, well don't take this as a rock solid commitment because I don't have the ability to commit other people's money, but I'll sure try to start working on it this afternoon.

ALLEN: Thanks.

Did you know what Allen wanted? Did you see how Allen offered a solution after he could see what Mark's problem was?

What If You Find Out That Your Partner Did Not Disclose A Very Pertinent Detail To You?

For instance, what if there was an IRS tax lien against them which will spill over onto your project and make your life miserable?

Joint Venture Going Wrong - Chapter Q (continued)