Hi,
I have a partner in my business of prop. investing. We are about to settle on the 1st investment together on this Friday and the second in early May.
Things are not going too well and before we lose our friendship aswell because we continually argue, I would like to know how to break the partnership. It might be easy but how and what do I do with the properties I am about to settle with him. We opened an account in which we deposited alot of money (equally) but I would like to split the partnership and invest alone. Any help or advice is greatly appreciated. Thanks.
Kind Regards,
George“If You never never ask, you’ll never never know”
hi George,
Given the seriousness of this move I would strongly suggest getting your advice from a lawyer rather than this forum (not that there isn’t excellent information here).Regards,
Sithanks sibo – will do
“If You never never ask, you’ll never never know”
Dear GEo,
if you’re going to settle the properties, then why not divide the profit equally as both of you have deposited equal amount and just cash out? after all, once the investment has been settled, there’s no more partnership on those properties isn’t it? but that depends also on the contracts both of you may came up with prior. tell us how it goes.
Regards,
Kev
GEo,
To start with,
How is the partnership structured?
Is it actually a partnership (bad idea – unlimited liability jointly & severally), a company (private or unlisted public), a trust?
I’d advise that you seek professional advice on this too – it’s a complex and delicate situation.
Cheers,
Aceyducey
Geo
IMHO and experience with a business partnership over 10 years and 5 partner changes, the best way to end partnerships is to agree to end them on the same terms as they started.
So, cashing out is a good, fair and equitable option. OR one sells to the other, but at arms length. Either get a valuation of the IPs or put them on the market and get an offer from a buyer, then one partner buys for $1 more.
In business partnerships, the honeymoon is soon over, and friendships can turn quite nasty.
Depending on circumstances, legal intervention can be construed as overly antagonistic. Your call……
Hi Acey, Kev, Glen
your all right. He was one of my best friends – now we do nothing but argue – I try to get him to do some paperwork or deliver a paper to the solicitors. He’s just not interested – his all concern is on his job and is interested in nothing else…if only I knew that beforehand…I only went into it for the ‘buying power’
Hey Glen, the friendship has turned quite nasty…it’s sad[glum][glum][glum]
Acey – the partnetrship was just a joint venture but we were later forced (in order not to get sued) to form a company – no Trust (for expenses reasons)…
Kev – well we intend to go by what you said and divide it equally…I guess, it’s just a matter of us putting them on the market and them getting sold. We agreed that we don’t even want to make any profit from it – we just want to sell them to some investor, settle with the bank and divide it equally between us. We have conceeded that we will lose a few thousand dollars but that’s how bad we want to break the partnership…
Many thanks to all.
Kind Regards,
George.“If You never never ask, you’ll never never know”
Hey George
That’s a bit of a bugger
] I’m in a somewhat similar situation. My (now ex) partner and I have bought quite a few properties in joint names (d’oh, didn’t have those trusts in place!), and when we did set up companies and trusts (I made sure they were SEPARATE) we’re directors of each other’s company.There are serious problems at the moment, and I needed him to sign some urgent papers as a director of my company yesterday, which he agreed to in the morning, but by the afternoon he was AWOL. I believe he’d got drunk and gone to bed, but it’s really frustrating and an absolute pain in the a###. I have to tread softly until the end of the month (more papers for him to sign), and then bam – he’s out of there…..
Cheers
MelBest of Luck with us both Melbear – I feel your pain…
kind regards,
George.“If You never never ask, you’ll never never know”
Hi Geo,
Ah Well…. you live and learn, I guess you will go it alone from now on.However, I do agree with most comments, seek professional help, and who knows you may salvage the friendship down the track.
Good luck
Sure hope so Marisa – he’s a nice guy – great friend just not a business partner…you know what they say “never mix business with pleasure”
oh well, I learnt the hard way – but sometimes, the hard way is the only way…[blush2]
“If You never never ask, you’ll never never know”
Hi Geo,
I see myself as still new to this website and even newer as a CF+ investor. I have a friend who is a trady, sleeps 4 hours a day and works the rest (building, plumber, etc). He wants to go into a joint venture where I supply the equity, negotiations, research, etc and he does the reno’s which he’s got the skills for. However his wife rules the roost in their marriage hence = conflict of interest (It’s not just my opinion, I went out wth her before). Otherwise we’d be kicking goals. As friends, we are like a family. The reality would be that he’s wife would be ultimately dictating our business. You can’t do the whole thing on your own, you need to build a team of team players. Often the hardest thing to do in life is often the best thing to do, especially in the long run. I’ve lost close friends, because instead of getting pissed with them when I have free time, I now devote it as much as possible to this website and acting as much as I can on property. You start to feel like your being ‘perceived as being part of a cult’, but the response I always get back from them is that they all still hate their jobs as much as I still hate mine. If you are true to yourself regardless of your business partners feelings you will be doing the right thing by him in the long run. As Hamlet once said, ‘Unto thyself, be true’.
I don’t know if this helps your situation but you’ve always given me great advice (directly or indirectly).
‘Unto thyself, be true’
Regards,
Gatsby.Thanks very much Gatsby for all the advice,
He has decided that he is totally focussed on his job and not on property where its the opposite for me and I didnt want to lose the friendship so we mutually agreed that once we have settled on our current properties that we would put them back up on the market even for no-profit (as we bought them so we would sell them – even though they were good +CF deals) and then the moneys would be distributed equally and that’s the end of it. then I could continue investing by myself.
Your quote of
Often the hardest thing to do in life is often the best thing to do, especially in the long run.is so very true.
Many thanks again
Kind Regards,
George.“If You never never ask, you’ll never never know”
] I’m in a somewhat similar situation. My (now ex) partner and I have bought quite a few properties in joint names (d’oh, didn’t have those trusts in place!), and when we did set up companies and trusts (I made sure they were SEPARATE) we’re directors of each other’s company.
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