Unresponsive Business “Partner” - Short Sale

[Account Closed]

Hello,

My name is Nick. To make a really long story short, I have just completed a Short-Sale of a single-family home a business partner and I built in Horseshoe Bay, Texas, right outside of Austin, Texas.

Our Operating Agreement states that we are to split 50%/50% of all expenses within the business and treat any unexpected monies due as loans and paid back equally amongst the partners. Due to unexpected circumstances, I’ve had to come out of pocket probably close to about 50K or more since the inception of the project, and he’s made excuse after excuse as to why he has not been able to. Unfortunately, you cannot just tell your private lender or builder that you cannot make the payments, so I’ve covered all of the costs. At this point, and for the previous year, he’s been fairly and almost completely unresponsive to my messages outside of communication with our realtor and private lender. Now that the house has been sold and we no longer have to communicate with a realtor, this behavior is worse. 

We owe the lender a hefty sum due to the short sale, and my partner should be responsible for at least as much as I have paid into the deal so far. My “partner” has not come thru on his side of the deal. I am ready to file a lawsuit. 

Any guidance is gladly accepted and welcomed.

Thanks,

Nick

[Chris Seveney]

Quote from @Account Closed:

Hello,

My name is Nick. To make a really long story short, I have just completed a Short-Sale of a single-family home a business partner and I built in Horseshoe Bay, Texas, right outside of Austin, Texas.

Our Operating Agreement states that we are to split 50%/50% of all expenses within the business and treat any unexpected monies due as loans and paid back equally amongst the partners. Due to unexpected circumstances, I’ve had to come out of pocket probably close to about 50K or more since the inception of the project, and he’s made excuse after excuse as to why he has not been able to. Unfortunately, you cannot just tell your private lender or builder that you cannot make the payments, so I’ve covered all of the costs. At this point, and for the previous year, he’s been fairly and almost completely unresponsive to my messages outside of communication with our realtor and private lender. Now that the house has been sold and we no longer have to communicate with a realtor, this behavior is worse. 

We owe the lender a hefty sum due to the short sale, and my partner should be responsible for at least as much as I have paid into the deal so far. My “partner” has not come thru on his side of the deal. I am ready to file a lawsuit. 

Any guidance is gladly accepted and welcomed.

Thanks,

Nick

Do you know if this person has the money? When you vetted this partner did you check their financials?

Since it was a short sale, I would consider letting the private lender sue the entity first and you and him with the assumed guarantee as well. Hopefully you are not responsible for his portion from the private lender.

For what you are owed, yes you could start that lawsuit and i would start that one now.