After attending Lloyd's foreclosure workshop, I entered into a joint venture agreement with him to find, rehab and sell a property. I was to provide the capital, and he was to provide the mentoring in the acquisition, renovation and sale of the property. We began in July 2011, and according to our agreement, I gave him a $3,000 deposit which was to be part of the capital contribution, which was to be refunded to me after 30 days if we didn't find an acceptable property, or after the sale of any property we did buy.
The remaining profit would be split equity between us. Unfortunately, we didn't find a property, but agreed verbally to keep looking beyond the 30 days. After a few months, I took a full time job, and told Lloyd I wouldn't have time to continue, but he said that wasn't a problem - he would be able to continue looking. I also found an alternative source for properties - Posted Properties, to help us buy properties at auction. Lloyd & I attended the training together, registered, and I got approval for a loan to participate in the process.
In January of 2012 my deposit check with Posted Properties expired, and I told Lloyd I could no longer continue. The search had taken much more time than I imagined, and didn't seem to be working. Lloyd said he would refund me the $3,000 capital contribution. Six months later I was still asking for the refund. On June 12 Lloyd said in am email, "Sorry for the delay. Will pay within the next 30 days. (Just waiting for an escrow to close.)'.
Then in August he said he didn't owe me the refund after all because the 30 days in our contract had passed, and he had spent a lot of time looking, so wanted compensation for his effort. The contract said there was to be no payment for services rendered, but Lloyd insisted I didn't understand the contract. He challenged me to file a claim and let a judge decide. I am waiting to hear if he will pay me a settlement amount (I'm doubtful that he can pay, so am willing to accept less), and am about to file in small claims court just in case that doesn't work.