Legal

Ask a lawyer and get answers to your legal questions

Ask a Lawyer,
Get an Answer ASAP!

This answer was rated:

Myself & two other partners purchased a beach side condo in…

Hi – myself &...

Hi – myself & two other partners purchased a beach side condo in San Diego, CA in 2006 (we are AZ residents). The mortgage was only under one partner’s name, however, we were all equal partners investing $17k apiece. We put the property in an LLC & listed all three of us as partners. We used the property as a vacation rental to be managed by the wife of the mortgagor & paid her a percentage to manage the property & bookings out of the profits. I know that the mortgagor & his family utilized the property for at least one week a year & I’m certain (although I can’t prove it) that he gave free time at the property to business associates & friends/family. While there were only a couple of cash calls (no more than $1k apiece), he said the property broke even annually & that there were no profits to distribute. In January 2016 I asked him to provide rent rolls, cash flow statements, etc. showing the profitability of the property. He told me he would send this information to me but never did. In November, 2017 I asked for this information again & after avoiding my emails & texts for a couple weeks, finally admitted that he had had both financial & health troubles for the past couple of years. He said he didn’t realize that the loan on the property was a negative amortization loan, meaning each month he made the payment, we owed more & more to the bank (he is a real estate broker by trade) & that the property suffered losses each year. He said he tried to get a loan modification & missed a few payments in order to qualify, but was ultimately turned down. He then tried a Chapter 11 BK, but that failed as well. He insists that the property fell into foreclosure & that fees & back payments totaled almost $50k. At that point he said he partnered with an investor who paid the $50k in exchange for any profits once it was sold.

Lawyer's Assistant: Since laws vary from place to place, what state is this in? And has any paperwork been filed?

He said there ultimately was not much profit for the investor but that it did save his credit from a foreclosure. He also claims he lost his primary residence during this time as well. He claims that because of the financial stress he “forgot” that I was an original investor & that I should have been consulted. I’m not sure how much of this I believe & have now been waiting almost four weeks now for him to send me the settlement statement on the sale of the property, which he claims he cannot locate.
My questions: Do I have any recourse in this matter whatsoever? I don’t want to spend good money after bad trying to squeeze money out of him when ultimately he may just file BK. Is there another path I can pursue – small claims court, monthly payments, lis pendens on one of his properties – anything I can do to get even a little bit of my money back without spending an inordinate amount of money? AZ - no paperwork filed. exploring options right now.

Lawyer's Assistant: You can email***@******.***. JustAnswer is backed by a 100% satisfaction guarantee. So if our Customer Care team can't address your issue, and it's been 30 days or less since you paid to ask your question, they will refund your money. Has anything been filed or reported?

No- i said above nothing filed.

Show More
Show Less
Ask Your Own Legal Question
Answered in 3 minutes by:
1/16/2018
Ray
Ray, Lawyer
Category: Legal
Satisfied Customers: 48,863
Experience: 30 years in civil, probate, real estate, elder law
Verified

Hi and welcome to JA. Ray here to help you today.Please bear with me a few moments while I review your question and respond.

Ask Your Own Legal Question

Honestly I think you have to let this go.This person lost his house here, any profits are long gone and he is pretty judgment proof.I cannot see you getting any return here.You should have had all three of you on the title here, anything else allows him to sell it.I just don't see he is worth suing here at this point.

Please don't shoot the messenger.Sometimes you have to just let it go.At least your credit was not irreparably harmed.Let it go here and move forward.It was a lesson learned and nothing here to collect against.

I appreciate the chance to help you tonight.Thanks again.

If you can positive rate 5 stars it is much appreciated.

Ask Your Own Legal Question
Customer reply replied 7 months ago
I hate you! Just kidding! What if I send a legal doc or something threatening to sue him? I don't expect $17k, but I would accept small monthly payments for a while. I just don't believe the house bit...

You could sue up to $7,500 in small claims pro se without lawyer.That might get you something here.Send a demand letter and see what you get fro the guy you never know.

Ask Your Own Legal Question
Customer reply replied 7 months ago
Where & how do I send a demand letter?

Address it to him, send demand for what you feel your losses were here in 30 days unless payment in the amount of $50k or whatever you lost here.

File a California realtor complaint here too.

http://www.dre.ca.gov/Consumers/FileComplaint.html

Ask Your Own Legal Question
Customer reply replied 7 months ago
I can demand more than the $7,500 you mentioned above? Demand letter doesn't have to be from a lawyer? This letter is meant to open a dialog or a negotiation?Why file a California realtor complaint? Was realtor supposed to check for LLC's?

Yes demand what you want, you can only sue in small claims for the $7,500 but they don't know that.

It was my understanding the person who owes you was licensed realtor.If thats not the case no need to file complaint.

Ask Your Own Legal Question
Customer reply replied 7 months ago
Would demand letter be more effective coming from an attorney? Do attorneys do this? Otherwise it's just a letter asking for money, right?

It would be you would have to pay the lawyer $250 or so to send it.

Contact the State Bar for Help

Ray
Ray, Lawyer
Category: Legal
Satisfied Customers: 48,863
Experience: 30 years in civil, probate, real estate, elder law
Verified
Ray and 87 other Legal Specialists are ready to help you
Ask your own question now
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a lawyerLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Ray Your Own Question
Ray
Ray
Ray, Lawyer
Category: Legal
Satisfied Customers: 48,863
48,863 Satisfied Customers
Experience: 30 years in civil, probate, real estate, elder law

Ray is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises!

Gary B.Edmond, OK

My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer.

EricRedwood City, CA

I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight.

MichaelWichita, KS

PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent.

Three H.Houston, TX

Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!!

ElaineAtlanta, GA

It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem.

TonyApopka, FL

Not only did he answer my Michigan divorce question but was also able to help me out with it, too. I have since won my legal case on this matter and thank you so much for it.

LeeMichigan

< Previous | Next >

Meet the Experts:

Ely

Ely

Counselor at Law

24,658 satisfied customers

Private practice with focus on family, criminal, PI, consumer protection, and business consultation.

INFOLAWYER

INFOLAWYER

Attorney

22,843 satisfied customers

Licensed attorney helping individuals and businesses

JPEsq

JPEsq

Attorney

2,132 satisfied customers

Experience as general attorney, in house counsel, SSDI, Family Law attorney, and law professor

Law Educator, Esq.

Law Educator, Esq.

Attorney

44,266 satisfied customers

JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law

Ellen

Ellen

Lawyer, Consultant

8,238 satisfied customers

25 years of experience helping people like you.

Guillermo Senmartin

Guillermo Senmartin

Lawyer

301 satisfied customers

Principal Attorney at Guillermo J. Senmartin, P.A.

Dimitry K., Esq.

Dimitry K., Esq.

Attorney

17,183 satisfied customers

Multiple jurisdictions, specialize in business/contract disputes, estate creation and administration.

< Previous | Next >

Related Legal Questions
I wish to invest as a silent partner in an LLC that is being
I wish to invest as a silent partner in an LLC that is being formed by 4 parties. I wish to invest silently with 1/4 of the investors. However, we do not wish the other partners to know we are investi… read more
Legal Eagle
Legal Eagle
Attorney
Doctoral Degree
14,086 satisfied customers
I need some advice setting up a partnership. Florida. Nop
Hello i need some advice setting up a partnership JA: What state are you in? It matters because laws vary by location. Customer: Florida JA: Has anything been filed or reported? Customer: No JA: Anyth… read more
Legal Eagle
Legal Eagle
Attorney
Doctoral Degree
14,086 satisfied customers
I'm currently considering personal bankruptcy, but have a
Hi, I'm currently considering personal bankruptcy, but have a question about an asset. I'm a 50% owner/partner in an Florida listed LLC, and we hold the note on a piece of real estate valued at $50k. … read more
TJ, Esq.
TJ, Esq.
Juris Doctor (JD)
11,462 satisfied customers
I have recently bought in to the purchase of a piece of land
I have recently bought in to the purchase of a piece of land in Northern California that my partners and I want to turn into an intentional community. We bought the land with cash. There is an 85% par… read more
Law Educator, Esq.
Law Educator, Esq.
Attorney
Doctoral Degree
44,266 satisfied customers
How can I file a Lis Pendan on my property. We are in a divorce,
How can I file a Lis Pendan on my property. We are in a divorce, my estranged husband has possession of the property. It is in a trust that is in both of our names. The house is in the divorce dispute… read more
David L
David L
Doctoral Degree
1,604 satisfied customers
My husband loaned my brother and myself money to pay a second
My husband loaned my brother and myself money to pay a second mortage that was on property that we inherited. Can he put a lein on the property so that he can be assured that if the property is sold h… read more
TaxAttorneytoHelp
TaxAttorneytoHelp
Owner
Doctoral Degree
2,542 satisfied customers
I need to establish a lien on a condo recently purchased by
I need to establish a lien on a condo recently purchased by my business partner and his father for cash. My partner has pledged his half of the condo as collateral to a loan he has with me and his 50%… read more
TaxAttorneytoHelp
TaxAttorneytoHelp
Owner
Doctoral Degree
2,542 satisfied customers
I signed a contract with another person to build a web site
I signed a contract with another person to build a web site for a specific sum of money. The person to build the site then wanted to partner with me. I signed another paper that said I would give him … read more
Dwayne B.
Dwayne B.
Juris Doctor
28,766 satisfied customers
I just heard of a process called Cramdown in the Bakruptcy
I just heard of a process called "Cramdown" in the Bakruptcy laws. Is this law yet, and what if any exemptions / proctections are there for private investors / lenders, who have modified the loans to … read more
Law Educator, Esq.
Law Educator, Esq.
Attorney
Doctoral Degree
44,266 satisfied customers
Wednesday, January 14, 2011 Pentagon Federal Credit Union
Wednesday, January 14, 2011 Pentagon Federal Credit Union XXXXX Alexandria, VA 22314 Pentagon FCU Fax: XXX-XXX-XXXX RE: Hardship Letter / Acct #(NNN) NNN-NNNN PAYOFF AGREEMENT Dear Pentagon Federal Cr… read more
Richard - Bizlaw
Richard - Bizlaw
Juris Doctor
3,773 satisfied customers
Our company has a contract to promote a music show at an 8,000
Our company has a contract to promote a music show at an 8,000 seat amphitheatre. The sales have been slow so the artist wanted to pull out, and thus, sent an email to our investor explaining the situ… read more
INFOLAWYER
INFOLAWYER
Attorney
Doctoral Degree
22,843 satisfied customers
My husband opened a company lat year working with investments
My husband opened a company lat year working with investments because a great opportunity fell into our laps. my former boss and president of the company became one of our silent partners and sent mon… read more
Law Pro
Law Pro
Doctoral Degree
19,000 satisfied customers
Re Foreclosure, FHA Loan, HO-3 Policy, and Insurance Proceeds
Re Foreclosure, FHA Loan, HO-3 Policy, and Insurance Proceeds Rights in AZ I was behind in house payments when a fire occured; insurance co wrote a check for ACV Structure amount, payable to me, my PA… read more
KimberlyLaw
KimberlyLaw
Principal Attorney
Master\u0027s Degree
3,911 satisfied customers
Back in July of 2005 I managed to negotiate a profitable purchase
Back in July of 2005 I managed to negotiate a profitable purchase contract for some 100 acres of vacant land in Yavapai County, AZ for a purchase price of 300k that was worth between 1.5 and 2.5 milli… read more
TJ, Esq.
TJ, Esq.
Juris Doctor (JD)
11,462 satisfied customers
I am behind on my home payments and require a workout plan
I am behind on my home payments and require a workout plan from Bank of America. I have had no success on my own. Hope Alliance Foundation,XXXXX Ste 100, Jacksonville, Florida states it is not for pro… read more
Daniel Solutions
Daniel Solutions
Doctoral Degree
5,212 satisfied customers
Chapter 13 BK in Contra Costa County - Oakland, CA Will a
Chapter 13 BK in Contra Costa County - Oakland, CA Will a Chapter 13 help me to save my home? I am behind in my mtg payments 40k and I am in foreclosure process. The lender is a hard money lender in L… read more
Ellen
Ellen
Lawyer, Consultant
Doctoral Degree
8,238 satisfied customers
My wife and I entered into a tenancy in common agreement
My wife and I entered into a "tenancy in common" agreement with a couple of partners on the purchase of a 10 acre property with a 3 bedroom house in Central Oregon 4 years ago. We have a $1,000,000 mo… read more
cfortunato
cfortunato
J.D.
7,967 satisfied customers
Hi, I was a partner in an LLC here in Phx Az. The partner ...
Hi, I was a partner in an LLC here in Phx Az. The partner with the money invested had us (3 total partners) sign a note saying that in the demise of the compnay each partner would pay beack 1/3 to him… read more
NO LEGAL ADVICE  WAS GIVEN BY ME
NO LEGAL ADVICE WAS GIVEN BY ME
N/A
134 satisfied customers

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

Show MoreShow Less

Ask Your Question

x