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First time poster, long time reader.
A bit about me: I have worked in the construction (heavy civils) industry for the last 10 years and have an understanding of planning, CDM, council engagement, architects, applications, consents, etc etc
Having said that, I am not an experienced investor however, I was presented with an opportunity in Dec. This consisted of 130odd flats in Manchester. The person who introduced me to the deal was an ex-colleague of mine.
The deal included a 100% interest on the investment and also a 15% share in the company created to deliver the project. The numbers all looked fine. The investment is backed by another development which is currently awaiting planning permission.
The issue is the people involved, I have found, are very unreliable and untrustworthy.
For starters, my colleague lied to me about investing in the deal and I only found out after I had invested. I gave him a piece of my mind but whats done is done and I need to concentrate on getting my investment out.
I was due some returns in Jan 19, which I havent received yet.
I was due some back after the planning permission has been granted but they haven't even applied for planning yet due to mismanagement of funds. Now they are talking about selling the deal to someone else. At this point, I am not sure what is the right way to move ahead.
I am looking for some advise, I do not want to take legal action just yet but this is causing me a lot of stress and anxiety which I thought I would be able to cope with. It is the uncertainty of the whole situation. The projects are kosher, its the people involved. I don't want to lose my savings.
Any advise? recommendations? if you require specific details, please ask.
I appreciate your help.
At the sort of level you are talking about, even though you have not disclosed your level of investment, it sounds like you need a good lawyer now. You need to crystalise your position quickly and don't allow others to take advantage of you. I am hoping that when you invested legal advice so any warranties and guarantees made to you are documented - that's how proper investments work. Unfortunately it sounds like you may have missed something out here, which would be a bit odd given the scale of the project. If you are not an experienced investor, 130 flats is a big undertaking.
If you have loaned money to this project, do you have any charge on the property? How would any guarantees be enforceable? Are you a shareholder in the project company yet? What sort of contract have you got? So many questions that I fear may have unfortunate answers.
If it helps I can suggest a great litigator in south Manchester who would be able to assist. I think you need help pdq.
Hi Graham, Thanks, I will take you up on that offer. Please send me the details.
Please do see a solicitor regarding this, if only to ensure that your money is protected and that adequate security is obtained legally, perhaps by registering your interest at land registry!
Thanks I will do it.
Speak to a lawyer but do your homework first. You are very light on corporate details which is where I think it has gone wrong.
I suspect this is a case of caveat emptor
Chartered Accountant, Tax Advisor and Mortgage broker
(and BTL portfolio owner)
I was relying on the colleague who is a quantity surveyor and that was the first error, hindsight.
Thanks for taking time to read the post and advise.
My fingers are crossed for you.
If your colleague is a QS, might he have professional indemnity insurance? If so, and you had a proper contract, perhaps it would be worth suing him for negligence or something?
Hi Yas,I am sorry (but sadly not surprised) to hear of your plight.There is a famous Chinese proverb: "When man with experience meets man with money, man with experience leaves with money and man with money leaves with experience".The lesson here is that due diligence is key and that even people you regard as friends can behave very disappointingly where money is involved.Many years ago, I had a male friend who I regarded as my best friend. I was going on holiday to a spa in Arizona and he wanted to come. He asked me to lend him the money and he would pay me back, so I did. After the holiday, where I paid for all the extras, I asked for my money back and he quite baldly said "You bought me the holiday as a gift". He never paid me a penny back and just cut off all communication. That is when I learned a very hard lesson about people and money and how it can destroy relationships.I fear this may be the case with you and this scenario. Much will depend on the legal contracts you had, how robust they are, and if you have a charge on the properties.You really should seek legal advice as to where you stand as soon as possible. Property Tribes is partnered with Anthony Gold Solicitors, and they have a expert in this niche area of law by the name of Clifford Tibber. Cliff has won a number of high profile property-related cases and you should drop him a line at email@example.com as he would be the ideal legal advisor for this scenario.Good luck and let us know how you get on.
Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **If you have got value from Property Tribes, find out how you can support it in remaining a free to use community resource**