$70K loan for 2 months

[ihot]

What is the name of your state? CA
Hi,
I gave a 2 month loan to an small business in exchange for 0.5% share of their _startup_ corporation. They swore that they will return my $70K as soon as they bought their home and refinanced it. Well, it_s been over a year and they have not been able to refinance. They promised to repay me from funding they received from other investors, so far they have received over $100K and only returned $250 (a couple of months ago) to me. They hope to return some more money next week. 1) What are my recourse? 2) Can I win in court? I have a 5 line scribbled promissory note signed by them and a couple of emails admitting that they owe me $70K. The promissory note did not specify penalties if they were late in returning my loan. It did specify that they promise to return my money in a couple of months. I have asked them to sell their home. (I did get the shares in their corporation, but there is no income).

Thanks in advance.
Ok, I admit I'm a fool, but hopefully their product takes off.

 

[TigerD]

Your only recourse is going to be through the court.

But on a side note -- next time you want to invest PM me -- I'd give you 20% on $50k for one year.

DC

 

[moburkes]

I hope that OP meant that he loaned $70,000 for 50%, as opposed to the 0.5%, which is 1/2 of 1%.

 

[Betty]

I hope that OP meant that he loaned $70,000 for 50%, as opposed to the 0.5%, which is 1/2 of 1%.

I was thinking the same thing. I agree with DC - I see no other recourse other than taking them to court.

 

[ihot]

do I have a chance at court?

I have a document that states that the lender will return $70K within a couple of months. In exchange they will give me shares in their corporation. Will I have a good chance to win in court? Even if I win here in California, how do I collect? Do I put a lien around their house and company assets such as patents?
Thanks in advance.

 

[Chien]

To me, this is a very confusing post. It would seem that you are either an investor or a creditor and maybe both. You lent money to a corporation (and, presumably, hopefully, got a security interest in some kind of collateral, which interest you recorded). You got a promissory note (a “5 line scribbled promissory note”) saying the lender [sic] (borrower) will return “$70K within a couple of months” (I hope it was more specific than that) from money they receive “from other investors”. AND, in exchange, (i.e. in consideration?) they will give you shares in their corporation.
Before you worry about collecting by putting a lien on a newly-financed house (you might have thought of that before the house was re-financed) or “putting a lien on patents” (the patent rights are assets; whether assets of the corporation or the individuals is no clearer than to whom/what the loan was made, and you can’t benefit by trying to lien an intangible), you really ought to talk to an attorney to evaluate your position. And take your “5 line scribble”.
There really is no point in discussing the “post-judgment options”, until that is done.