Buyout of partner in LLC

[Shelley W.]

I co-own a duplex that is held in an LLC. I want to use the equity in the duplex to buy out my partner. But since the property is held in an LLC, it's more complex. I've been researching how to do this, and it's much less straightforward than a personal HELOC or home equity loan. Does anyone with experience in this situation have any recommendations? (It's a friendly buyout between two partners with a high level of trust.)

[Jason Taken]

If there's a mortgage on the property, it's likely your loan docs discuss notifying the lender of a membership change in the borrowing entity. Talk to them first to see if there's a way to do it without refinancing. 

If they make you refinance, a transfer of membership interests and a buyout agreement should suffice but always speak to a local attorney.