Bad Partnership Question

[Manuel Lopez]

Hello BP Members,

Hopefully I can resolve my issue in a passive matter. My partner and I have a property we purchase one year ago. It's a multi family with 3 apartments and 2 commercial. We have not been on the same page since they one. This is my first investment and being that he is a contractor I went alone with what he told me. My fault for not doing my due diligence.

I am by the books and having all documents up to date. Payment on the tenant I collect from is deposited to the LLC checking account. And utilities and repairs I have taken care of are done by the LLC checkbook. This is a mess. I have spoken to him that this is a business and everything has to be reported and with receipts. He made a lease without my consent. Which I am having the attorney draw it up correctly.

My partner is totally the opposite. He collects rents and doesn't deposit it in the LLC, he deducts it from the materials he bought from Lowes and Home Depot. He pays cash to the worker and just writes down on a piece of paper. I can go on and on.

I have decided that I want out of this partnership. I think it will get ugly. He claims he has put out of his pocket $23k in rehabbing without receipts. So, he gave me different invoices from his company on the work done to justify. I have all receipts, invoices and pay stub on my part of the work. It is really bad.

My question is. I am going to propose to him to buy me out or that we sell. I don't want to buy him out. If he doesn't want to do neither. What can I do?  

Thank you in advance for any advise.