Tried Helping A Friend And He’s Screwing Me Over

Hello. So I’m going through a pretty big deal right now. I will try and condense the information as it’s in the span of 2 years.

So back in 2023 my wife and I were getting interested in real estate. I had a friend who I’ve know most of my life who was an investor in Cincinnati Ohio (we both live in Florida). He had a portfolio of over $6 million in properties and it seemed like he was doing well. My wife and I had gone to his house about 6 different times to have him educate us on how he invested into real estate and how he managed his properties. Then one day I get a phone call from him asking if I can help him out. He needed me to sign as a guarantor for 4 properties. His excuse was the lenders some lenders he was doing business with had gone out of business, causing his credit to take a hit (first red flag). He told me that if helped him on these 4 properties he would help me start my own real estate business and help me flip 4 properties. My wife didn’t like this idea and didn’t want me to do it, but I didn’t listen as this was a friend I’ve known all my life. So I decided to help him out, because I would want my friends to help me out if I was in a similar situation. I joined his company as a 20% owner member. In the operating agreement it states that I am not entitled to any compensation or profit on any of the properties and that I am solely there for him to use my credit. It also states that the company will take full responsibility of any debts and all debts incurred and will be responsible in the event of default or foreclosure. I am also not on the title of the properties. He also gave me 4 cognovit notes for each property stating that in the event of default or foreclosure he will personally be liable for the outstanding loan amount.

Fast forward to October 2024, all 4 properties have gone into foreclosure. I was also lied to and manipulated as he told me I could not be liable for the loans, but of course since I am the guarantor I am 100% liable. We managed to sell one property and are now facing 3 foreclosures. He has put the properties for sale at $100k over the loan amount. He is trying to make a profit at my expense. He’s wasted 4 months of time trying to make a profit and now one of the properties has reached judgment and has a sherif date 2 months away.

My question is, what can I do ? I have no power and am exposed while he is protected behind his llc. I have a lawyer in Ohio helping me with the foreclosures and I’m talking to a lawyer in Florida to possible sue. Unfortunately his business address is in Ohio. He has also started completely ignoring me and refuses to talk to me about the situation. He has told his real estate agent that he will not accept any offer to where he needs to put money down. So I’m literally stuck. Please can anyone give me any ideas I can present to my lawyer ? Anything to potentially sue for power or damages ?