partners disagree on exit strategy for rest of our life to start
Big, big blow up on a car ride yesterday thru Marin county in NORCAL...it was a saturday that should have included some recreation but we were once again chasing deals..that's when one of us ( we are two people who've been partners for 29 years) said " LETS GET OFF THE HAMPSTER WHEEL AND ENJOY THE LAST GOOD 25 YEARS WE HAVE LEFT ON THIS EARTH"..one of us is 60 the other 55...both of us were financially devastated from divorces and the market crash so we've made and lost hundreds of thousands of dollars over our REI years...BUT!! we've managed to hold onto 10 SFH all of which are rented.. and between us we have $470,000 cash liquid and $600,000 in ROTHs..
HERES THE POSITION OF THE TWO OPPOSEING POSITIONS:
partner #1 - use all BUT $100.000 of liquid cash, sell off 50 oz of gold , 125,000 wholesale value of unset precious GIA certified gemstones and an art collection to be auctioned and pay off the 10 houses that generate then $14,700 a month in gross cash flow before taxes and insurance WITH THE ABILITY TO RAISE THE RENTS EVERY YEAR SINCE THE CRASH...then switch focus to direct mail and wholesaleing and get out of the flipping in a volatile market that is at it's probable peak....only do a couple flips a year INSIDE the ROTHs
Partner #2 - Keep plodding along and stay liquid with the $450,000, borrow hard money for the flips at 10% and use the cash to rehab and let the tenants slowly keep paying down the properties while switching focus to direct mail and wholesaling.. (PARTNER ONE THINKS.this method drains the $450,000 slowly but surely to pay overhead and monthly living expenses and keeps us at the "continued risk of the market every time we pour money into a rehab hopeing the market doesn't turn before it's sold")...but this partner #2 sees another correction that has already begun and opportunity down the road to buy cheap again to hold AND MEANWHILE SAYS WE'LL JUST HAVE TO INCREASE INCOME BY DOING MORE DEALS
WHICH DIRECTION WOULD YOU CHOOSE AND WHY?? HELP MEDIATE THIS DISAGREEMENT