Legal Question in Real Estate Law in Illinois
To Real Estate Deal or Not: Boosting Credit - Continued
Hello. I have been approached my a real estate investor to help build a third party's business credit because my credit isn't bad..at all. I would not be on any papers as responsible for the loan and because I assisted the investor, I would receive funds in a week and a full year's rent. In sum, that could be 10K for the initial usage to boost the company's business credit and then 12k for the full year of rent. What am I not seeing/asking, etc? What do you think? No decision/action has yet been made.
Above is a question I asked before.
To continue with this; the investor is the brother of a very, very close friend of mine. My friend I have known for 5 years. He's not Nigerian. Is being a credit partner with any r.e. deal good? What should I know/ask?
2 Answers from Attorneys
Re: To Real Estate Deal or Not: Boosting Credit - Continued
I would have to agree with the previous answer to our identical question. Do NOT do it. Your presence at this company will not magically increase their business credit. You will inevitably sign something (whether you know it or not), and you WILL be responsible for the loan. Any other scenario just does not make any sense whatsoever. Why would a lender care that you put your feet up on a particular desk? If you are not obligated to pay the loan, the lender will not even care about your existence. Remember the phrase, "if it sounds too good to be true...."
Re: To Real Estate Deal or Not: Boosting Credit - Continued
Pursuant to my previous answer, your first question should be "What am I being asked to do?" It's still not clear to me what's being requested of you. You should also request copies of everything you're being asked to sign so you have some idea of what's happening.
It still doesn't sound like a good idea. Things are always great at the beginning of an investment. Of course, there's no guarantee they stay that way. Good luck!
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