Net worth calculation as an LLC partner

[Eli Rods]

Hi Fellow BPers, How is personal net worth calculated when you are a partner in an LLC? Assuming I owe 25% in an LLC that owns and operates a hotel, I take into account the value of the property (25% of my share worth) BUT do I also take into account liability which is the mortgage loan amount issued to the hotel as well (25% my share of loan amt)? Any advice is appreciated please. Thank you.

[Steve Hall]

Net worth is the value of all the non-financial and financial assets owned minus the value of all outstanding liabilities. So, if your hotel is worth $4 million, and there is a $3 million debt service, and you are 25% owner, then your Net worth of that property would be $250,000. (Assuming there are no other liabilities.)