All Forum Posts by: Kip Pierson
Kip Pierson has started 1 posts and replied 2 times.
Post: Partner wants out--need advice on a fair "buy-out" price
- Washington, DC
- Posts 2
- Votes 0
Holding with tenants. Lease will be up in August. I haven't even factored in the cost of making it "look pretty" for resale. This was originally a buy and hold, but now he wants out. I think the appraisal will come back lower than he thinks. He thinks it will be $490k, I think it will be $460k....current tenants haven't been the cleanest of folks :-(
Currently I'm 50% owner, looking to hold on longer and willing to buy him out at a reasonable price. If that doesn't work, he's more than capable of finding someone else to buy him out if I don't agree on the price. Just want a fair price for his share and the way the discussion have gone, I'm looking for a little ammo or objective formula to use to simply it all. His version of him not paying fees versus mine of paying 7% is a $17,250 swing in his favor.
Post: Partner wants out--need advice on a fair "buy-out" price
- Washington, DC
- Posts 2
- Votes 0
Good evening y'all!
I'm new to the forums and the community, but I have been lurking from afar for awhile now. My quick impulse to join the forums comes from a need to seek advice on a current dilemma with one of my properties.
Currently one of my partners wants to liquidate his half (50%) of the partnership and has offered me a price. I feel the price too high, mainly because it lacks applying any fees that we would have if we sold the place today. My position is we should appraise the house, minus the fees of selling (somewhere between 7-10%), subtract the debt left on the mortgage and then divide it by 2. Whatever that number is, is what his half is worth. He contends that no fees should apply since I'll be making more money in the long run and that we should just get an appraisal, minus the mortgage debt and then divide by 2. In his scenario, if I had to sell tomorrow by myself because of an emergency or need, I would already be down the 7-10% for the fees associated by selling it. It doesn't seem right to me.
Does anyone have any experience or advice? Am I crazy to think the fees should be factored in?...he seems to think so. Is there another formula I should seek out?
Thanks in advance.
KIP