Legal Question in Investment Law in California

Securing money invested in a venture

I am considering investing money in a venture with an individual who runs a private venture company. There is no corporation or proper business licence for this venture as it entails throwing private party events. I am considering investing a good amount of money in this venture in hopes for an agreed upon ROI. My concern is that I want some way of securing my investment with this individual and I need to know if there is a certain contract we must draw up or how I can go about securing my investment. Any help would be greatly appreciated.


Asked on 3/02/09, 12:29 am

2 Answers from Attorneys
Daniel Bakondi The Law Office of Daniel Bakondi

Re: Securing money invested in a venture

Nothing is guaranteed, but there are some options that may help, like signing a personal guarantee contract, recording a lien on his assets or property. You need an attorney to do these things - let me know if you want help.

Best,

Daniel Bakondi, Esq.

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Answered on 3/02/09, 1:19 am
Bryan C. Becker Your Lawyer for Life.

Re: Securing money invested in a venture

Certainly you can have an attorney draft a personal guarantee or secure the investment with a security interest in their property (a lien) etc. The most important thing that you can do at this stage is to conduct extensive due diligence on this individual. We handle investment fraud cases and the one thing clients always lament is that they didn't do more to investigate the individual before handing over their money. If you would like to discuss this further, feel free to contact my office.

Yours truly,

Bryan

Becker Attorneys

619.400.4929

www.bbeckerlaw.com

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Answered on 3/04/09, 12:43 pm


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