The second issue that came up last night was the major one that really stressed me out, and still does. Sha and I have been the best of friends since college, for about 7 years now. We have very different idealogies when it comes to life and business, but we're able to accept it with wisecracks, dick jokes, and understanding. I purposely came to Smalltown because I wanted to buy properties and have someone like him give me advice along the way, while I help him out any way that I can. There are some things, however, that I don't think I'm able to do for him.
Sha bought multiple properties from a guy named Paul Maddox. The deal was that Paul would act as the bank and, every month, Sha would pay Paul the agreed "mortgage" and whatever interest rate that they agreed upon. When times got tough, Sha had to give up the properties because they were unaffordable and were costing him too much money. While he gave back the properties, Sha was still on the hook for the remaining balance owed on the properties. It's like a regular loan: once you default, the bank takes back whatever was purchased (car, house, etc.) and sues the borrower for the money. Paul sued Sha and won a judgement for over 70k and then sent a letter to all of Sha's tenants that all their rents must now go to Paul instead of Sha. Last night, Sha asked me to let him "borrow" my LLC to hide his properties until he can come up with his own LLC. Normally I would do it. But there's a twist to this story that makes me reconsider.
Sha encouraged me to buy from Paul as well. I bought a one family for 35k from Paul about a year after I came to Smalltown. Had I known that I could be sued for the money should I default on the deal, I wouldn't have done the deal. Everyone simply told me that I can simply give back the property, both Sha and the real estate guy we were dealing with (the latter of whom turned out to be a crook and make a nice 10k on that deal). Anyway, I ended up defaulting on that property and had to give it back. Paul looked kindly on me (or felt sorry for me, not sure which one) and let me go and wished me luck.
If I lend Sha the LLC name and Paul sees that it's because of my company that he's not getting his money, he'll come after me with everything he's got. I'm just getting started in this business and can't have him sending letters to my tenants and suing me. Besides, should there be a judgment against me, that would negatively impact my chances at a loan approval. I can't work two jobs forever, as it's slowly taking a toll on my body. And I wanted 2012 to be the last year that I ever had to work a 9-5 job again, especially these goddamned security jobs. Unless Sha can explain to me how I can lend him the LLC and not have Maddox find out Sha got the LLC from me, I just can't do it.
I hated refusing him a favor because he really is a great friend. It actually made me feel like a true traitor because I always say I'll do anything for someone that I call a friend, and I can only call Mike and Sha friends. Sha said he's cool with it and we even cracked some more dick jokes, but I think he had to be disappointed. But the option of having to work these 2 jobs fulltime for the next three to four years because I won't qualify for mortgages with a 35k judgment against my name is just too much of a burden. It would break me down and I'd probably quit this business and do something else... like kill myself.
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