Partnership buy outs

[Aaron Gordy]

Hi All

I have a question. I am involved in a project that initially started out as a flip so there is a construction loan involved and a good friend/partner. Throughout the course of the project as I was gc'ing it I noticed that the make up of the area was changing. We bought the project because I knew it was a home run deal. My partner is out of state. 

Real Estate investment requires a long term horizon sometimes. My partner is wanting out. I am wanting to stay in as I see how lucrative it could be in the future. My thinking is to get it appraised by a third party to figure out the value and then think about the ownership share so that my partner can divest equitably. I am a broker and can figure out the approximate value but I think in such a situation its best to turn over to a third party professional firm so that there aren't any hard feelings going forward. 

Just curious as to how other folks would handle such an arrangement. 

Thanks