Partnership Buyout

[Nick Connor]

Hello,

I was wondering if someone could give me an unbiased opinion on my current situation. My business partner and I invested on a duplex together a couple years ago and all the sudden he decides he wants out. He asked me if I want to sell but with the current ROI and monthly profits we are making I think it would be unwise, so leaving me only one option to buy him out.

What would you consider a good/fair buyout for the situation listed below;

Purchase Price: 20K
Loan: 45K
Downpayment: 12K
Profits up to this point: 5K (joint savings)
loan term: 20 year (mind you its an arm and will adjust after next year pending we/I can get it adjusted to fixed)
years left on loan: 16 years

Thanks in advance and let me know if you need more info. I trade to be as vague as possible so I wouldn't influence any opinions

[J Scott]

Originally posted by Nick Connor:

We never finished our OA so we aren't bound to a contract at all.

This is the problem...

Without a formal agreement upfront, you're in a situation where both of you are looking for what you consider to be a "fair" deal, but unfortunately, what each of you considers fair is wrapped up in an emotional attachment to your goals.

Ultimately, you guys are going to have to try to negotiate until you come to terms...in the end, it sounds like your partner is in a more desperate situation than you are, so ultimately he'll need to compromise or be forced to keep an investment that he doesn't currently want.