Partners going different directions

3 Replies

My partner and I bought a property with our LLC and attempted the brrrr method on it. Unfortunately the appraised value was not high enough to pull all the cash out. As result we both need to come up with 21000 each to pay back our private lender after the refinance. I do not want to put that much money into it my partner on the other hand is okay with this.

Is it possible for our company to sell the property to my partner and her husband ( not an arms length transaction ). Would any lenders be okay with this? 

I am trying to get off the deed and bring some of my equity with me and  my partner is trying to keep the property for her and her husband. 

Thanks for your advice in advance.

Originally posted by @Rich Hupper :

My partner and I bought a property with our LLC and attempted the brrrr method on it. Unfortunately the appraised value was not high enough to pull all the cash out. As result we both need to come up with 21000 each to pay back our private lender after the refinance. I do not want to put that much money into it my partner on the other hand is okay with this.

Is it possible for our company to sell the property to my partner and her husband ( not an arms length transaction ). Would any lenders be okay with this? 

I am trying to get off the deed and bring some of my equity with me and  my partner is trying to keep the property for her and her husband. 

Thanks for your advice in advance.

Sure it's okay. Partners often sell part or all of their interest in a business. Just make sure you do it like a normal transaction, follow the Operating Agreement of the LLC and keep all of the paperwork. Probably would be useful to use an attorney so that it's done properly.

 

It is possible, and depending on the lender you are using it should not be a problem. Also if the operating agreement is what is holding you back I would say spend a little time on making one so you can satisfy the lender requirement if that is needed. 

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here