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Updated 6 months ago on . Most recent reply

User Stats

33
Posts
7
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Jenna Bamlet
  • New to Real Estate
  • Jacksonville, NC
7
Votes |
33
Posts

Business partner separation

Jenna Bamlet
  • New to Real Estate
  • Jacksonville, NC
Posted

My business partner and myself have been attempting to separate for well over a year, waiting on properties to sell. I want to leave the LLC all together and he'd like to take it over. I refused to "subject to" the properties to him as they are all under my name and he doesn't have the ability to take over the loans. Trying to keep a long story short here. He refuses to talk business with me and I refuse to talk anything but business with him, I will clear any confusion around that if need be. The last three properties have been on the market for over a year with active showings but no offers. Running out of wiggle room for those to sell breaking even after all the fees stacking on them. They are currently active Airbnb's which he has been managing as he'd prefer only one of us working on business stuff instead of working as a team to make things easier. We agreed upon the profits from the Airbnb's being for the property bills and debts that have accrued while working together, i.e credit cards and other loans pulled while those specific properties were being renovated. I have only been using the bank accounts to pay business/property bills and pay down related debts, he has been using the business bank account for anything and everything from purchasing vehicles to other personal non related investments. I've tried to get on the same page and come to agreements but he refuses to respond. I have recently been removed from all 6 business bank accounts and had no responses from him. I can see he is still sending emails to other platforms from our joint business email. I'm out of state and have no way of knowing what's going on in the business or to the properties that are under my name. Being blocked from the bank account really worries me and I don't necessarily have funds to pay for legal help. I had to get a full time job just to stay a float. HELP!! Any and all advice is welcome and appreciated.

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Chris Seveney
  • Investor
  • Virginia
15,335
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Chris Seveney
  • Investor
  • Virginia
ModeratorReplied
Quote from @Jenna Bamlet:

My business partner and myself have been attempting to separate for well over a year, waiting on properties to sell. I want to leave the LLC all together and he'd like to take it over. I refused to "subject to" the properties to him as they are all under my name and he doesn't have the ability to take over the loans. Trying to keep a long story short here. He refuses to talk business with me and I refuse to talk anything but business with him, I will clear any confusion around that if need be. The last three properties have been on the market for over a year with active showings but no offers. Running out of wiggle room for those to sell breaking even after all the fees stacking on them. They are currently active Airbnb's which he has been managing as he'd prefer only one of us working on business stuff instead of working as a team to make things easier. We agreed upon the profits from the Airbnb's being for the property bills and debts that have accrued while working together, i.e credit cards and other loans pulled while those specific properties were being renovated. I have only been using the bank accounts to pay business/property bills and pay down related debts, he has been using the business bank account for anything and everything from purchasing vehicles to other personal non related investments. I've tried to get on the same page and come to agreements but he refuses to respond. I have recently been removed from all 6 business bank accounts and had no responses from him. I can see he is still sending emails to other platforms from our joint business email. I'm out of state and have no way of knowing what's going on in the business or to the properties that are under my name. Being blocked from the bank account really worries me and I don't necessarily have funds to pay for legal help. I had to get a full time job just to stay a float. HELP!! Any and all advice is welcome and appreciated.


 Sorry to hear this but the only way it is going to get resolved is with legal help. So I would do what you can to scrape up the money to get legal help OR if your name is on the properties then drop the price to sell them so they cover the mortgage amount and walk away.

Look at it from the perspective of what is it going to cost you to litigate versus just get out now?

  • Chris Seveney
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7e investments
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