Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
General Landlording & Rental Properties
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 almost 7 years ago on . Most recent reply

User Stats

143
Posts
62
Votes
Alex Huang
  • Dayton, OH
62
Votes |
143
Posts

Help with Partnership Structure - Planning for Dissolution

Alex Huang
  • Dayton, OH
Posted

I've found a great partner to work with in some real estate and we are trying to finalize our Operating Agreement.

While we both expect to be able to amicably part ways in the future, we both understand the importance of having a secured roadmap to dissolving the partnership.

With that said, we are struggling with finalizing the OA, so I was hoping some people here could share their experiences and input on how they dealt with this issue.

Right now, our plan is to have the following three options if a partner opts to exit:

1. Remaining partner can offer a cash buyout, paid out over 2 years.

2. Partners divvy up the properties equally (or as close to equal + cash) to make numbers work. Downside to this is there are some tax implications due to tax basis

3. Full liquidation of partnership

I feel like we've exhausted all of our options, but still are struggling with figuring out the perfect solution. Any one care to share how their agreements are setup for the eventual dissolution? 

Thanks

Loading replies...