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Updated over 5 years ago, 06/13/2019

User Stats

9
Posts
2
Votes
Angel Malone
  • Rental Property Investor
  • Carthage, MS
2
Votes |
9
Posts

Is partner shady or really unorganized?

Angel Malone
  • Rental Property Investor
  • Carthage, MS
Posted

My husband and I are in an LLC as members and our partner is manager of the LLC. We have 2 SFH properties we seller financed together and everything went smoothly. We are newbies and our partner is very experienced in real estate and has everything from rentals to seller financed and wholesale deals. We've also known our partner for many years. We partnered together so they could teach/mentor me as this person has so much experience and we had a private money lender to finance all the deals but no experience. We bought a 3rd property and decided to sell the SFH retail and build a duplex in an existing structure that was also on the property. Things started getting harder and more complicated the more I asked to be included in the decision making process/day to day operations of the duplex project. We had major differences in opinion on how much to freshen up the existing SFH so we sought advise from 2 separate realtors. To which both advised spending a little more but the return would be doubled. Partner refuses to do anything to SFH, we are at an impasse. At the same time we purchase a fix and flip which is now our 5th property. Our partner has gone through the entire duplex budget and all we have is the foundation, roof, and inside framed. All work has stopped we've had 2 meetings. One prior to money running out telling partner we need more information and updates on projects and want to be more involved. Communication breakdowns have been rampant in the last 6 weeks since the first meeting so once more we force a meeting with partner at which time we learn all duplex money is gone. We still have the money for the fix and flip but my husband and myself don't feel confident with partner managing that and so our partner decided reluctantly to let me lead the fix and flip project. The very next day I have a meeting with our contractor and am enlightened on a few things such as he was instructed to never listen to me and we were bad people the partner wishes they didn't have to deal with. The partner proceeded to not pay the contractor for a job he did on one of their houses and he is filing a lien. I have an appt with an attorney in the morning. Is it possible that my partner really has to much going on and just can't handle their properties and our partner properties and didn't mean to run us over budget and won't admit that. Is the contractor is lying to me about the things they told me for no reason? Our partner denies everything I've been told by contractor and that she wasn't really trying to keep me in the dark but she wasn't being paid to teach me. I don't want to believe what is now happening but she wants a meeting and I don't feel comfortable having one before meeting with attorney. Can we divide properties while they are in the middle of rehabbing? Any advice is appreciated.

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