I entered into an agreement with a gentleman to become partner and eventually purchase his mortgage company.
As part of our arrangement I made a $XX,XXX deposit and the rest of the acquisition was scheduled to be over time as we produced loans.
Like many partnerships the initial months were very productive. There were a few personality differences I noticed. For example, his treatment of women in the office was demeaning. He was also very arrogant with some referral partners like real estate agents. But there was no questioning that he knew his stuff and the office was productive and had great relationships with its lending partners.
As the weeks passed the bad behavior began to outweigh the good mortgage know-how.
The event which ultimately made me decide that he was the wrong person to be in business with was a heated disagreement we had about how to market the company. He literally took me out to the parking lot and berated me.
That’s when things really got bad. Upon requesting a refund of my deposit toward buying the firm, (our legal agreement stipulated the funds be held in escrow), he informed me that there was no money. It seems that he and his wife spent it on trips, 5 star hotels and fancy dinners.
Within the day I was in front of an attorney and we sent him an intent to file lawsuit. The settlement resulted in an installment repayment plan plus interest plus recovery of attorney fees which he paid back in full over several months.