Posted by Bill H on January 19, 2009 at 18:20:57:
Hi John:
Trust has nothing to do with it…GOOD business dictates that it be in writing.
Business Partners - Posted by Nick
Posted by Nick on January 18, 2009 at 18:24:54:
Hello,
I’m in a bit of a dilemma. I have owned a fairly large single-family rehab for the last year and a half. I bought it with a friend 50/50. We have since done a fair amount of rehab work on the property. He has not been a great partner. Half the time I end up paying for the entire mortgage myself. Eventually he pays me back but its months later. He now wants out of the deal. I don’t want to buy out his amount of investment but would like to make some sort of a fair deal with him. He’s basically hurting me now by backing out. I never would have bought this particular house if I would have been going in alone. Whatâ??s my best bet here any suggestions.
Nick
Written Agreeement? - Posted by John Merchant
Posted by John Merchant on January 19, 2009 at 16:35:00:
This is sure one of the big drawbacks in the 2 or 3 man informal, unwritten agreement and one that causes lots of grief at “unwrapping” time.
When one of these is done right by a knowledgable attorney, he/she’ll include details of sell out and what’s to happen by whom…generally the surviving owners/partners will be given first opportunity to buy out the selling owner/partner at some pre-arranged price or formula.
Since you apparently don’t have such an agreement I’d first talk to your lawyer, then meet with this person and try to get as much in way of written agreement as possible as what he’ll do, when, how, etc. so you now have him committed.
Since he sounds desperate for cash that may be your lever in dealing with him on your terms, but PLEASE get it in writing before going any further with him.
Good luck in your “unwrap”.