Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Tax, SDIRAs & Cost Segregation
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 9 years ago on . Most recent reply

User Stats

241
Posts
68
Votes
Christopher Goldie
  • Contractor
  • Columbia, SC
68
Votes |
241
Posts

Partbership Trouble Brewing

Christopher Goldie
  • Contractor
  • Columbia, SC
Posted

I have a 50/50 LLC setup with a partner on a rehab. Operating agreement in place spelling out duties, financial responsibilities, and profit share as follows,

Member 1 provide purchase money, pay holding costs and supply labor as able/ needed.

Member 2 ( me) provide rehab money, manage contractors, make all decisions neccessary for completion.

Short version. Trouble is now arising in that member 1 took it upon himself to perform work not originally agreed upon, buying materials ( out of his own pocket) and paying labor. He is now beginning to demand he gets paid for all his work, which is below amateur level, at a contractor rate he pulled outta his rear. I spoke with my attorney and basically he can demand all he wants, but nothing in our agreement states he is to be reimbursed for this work.

Now my issue is I fear that he could actually sell the house without my consent, due to the LLC being on title in which either member could sign legal documents, and run off with the money. Which would cause me to have to file a lawsuit to collect.

My question is, is there a way I can cloud the title to prevent this and protect my assests? My attorney is looking at options but I wanted other opinions and advice.

Loading replies...