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 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime

Let's keep in touch

Subscribe to our newsletter for timely insights and actionable tips on your real estate journey.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions
Followed Discussions Followed Categories Followed People Followed Locations
Buying & Selling Real Estate
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 over 1 year ago on .

User Stats

16
Posts
5
Votes
Mack Fleming
  • Brewton, AL
5
Votes |
16
Posts

Partnership Buyout and Lien Question

Mack Fleming
  • Brewton, AL
Posted

I am in a partnership that is developing a residential subdivision. We had some things come up that I did not agree with, and I asked to step away. At this point, everything is documented regarding my departure. My total investment is to be paid back to me as a buy out. Problem is, some of the members are strapped for cash. I am trying to work with these guys and have extended the deadline a couple of times, and we just passed another deadline. I am getting concerned. Phase One of the development is about to be approved any day now, and sales contracts have already been signed for a number of these lots. The partners tell me that I will be paid once they get their hands on the proceeds. My buyout will be approx  one-fifth of the gross proceeds from Phase One. This makes me wonder if my buyout will be a priority. If not, we roll into Phase Two, a much larger part of the development and a perhaps a much longer wait for my cash. I think it would be a good idea to place some kind of lien on Phase One to make sure I get my money out of the these proceeds. Does anyone know what kind of lien that should be filed in a case like this?