Hey guys. One of my lines of business took a hit and Im closing it out for a few reasons.
On this line of business I have a business parter 50/50 LLC, with 51/49 decision making. Im the CEO/President, and he is a CFO / Silent Partner with very limited expertise to really utilize in this line of business. So he didnt want to be invovled.
On day 1, we signed promissory notes for 65K as our capital investment into the business. I used the funds to purchase a property to secure our initial investment with.
My partner down the line became an angel investor after not wanting to bring forth other investors who wanted to purchase equity. Now 80% of this money went towards the mortgage note and property maintenance.
So our selling of this property will net us some cash. Not enough to square our initial investments and his "business loan". Either one or another with maybe maybe some extra to change to spare. We are trying to resolve this amongst ourselves without getting meditiation or making things messy
He wants to purchase the property and take ownership. Through the sale he wants all his debts paid which would leave me with nothing.
My proposal is that first our promissory notes for initial investments are paid. And the rest go to him .
Given he is able to keep the property and wants to do so, is my proposal lob sided?
I mean Ive lined up deals where our competitors want to sign long term leases and put down 30K downpayment to operate on the property. Given he sets something similiar , he is positioned to recover any losses. His plan is to set up a "BnB" with the property under a new LLC.
I could use some out of the box thinking. Yes Ive already spoken to lawyers about this... but I cant but feel I am being pressed. Whereas I was very fair to offer him 50% of the entry and potential revenue , and he is saying I should get 0% on the exit. Whenever I bring up, hey we may need meditiation services - he is like nah we can resolve this ourselves. So to me that is a big tell that I am entitled to what Im asking far. Am I being outrageous?
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