getting out of an LLC

[mesillakid]

What is the name of your state? New Mexico

I'm a half partner in an LLC which has a commercial rental property. We filled out generic LLC forms from a Nolo law book. I don't have the documents with me but my partner is wishing to buy me out. He says that his buyout of my 50% position would only consist of the $ I put in to the endeavor 2 years ago without consideration of the labor we put in to making the property viable and the current value of the property. What is the typical way an LLC like this would be resolved? I'm telling him we should have the property appraised (as if we were selling it) with a monetary amount determined for a buyout...which should be significantly more than the $ I put in. Are either of us correct?
Thanks!

 

[JETX]

The corporation (even an LLC) has a certain asset value, and a set number of issued shares. Determine the fair market value of the corporation (inventory, property, equipment, goodwill, market, etc., less liabilities) and then divide that number by the issued shares. That is your per-share value. Multiply that times the number of shares involved. Voila!! Price.

 

[mesillakid]

Thanks JETX!
That makes perfectly good sense to me. I've told my partner and his wife that we should get an appraisal (or more than one) of the property to determine it's value and figure our 50% figures. They aren't too pleased with this as it appears to be a significant figure of $ and are not familiar with this way of thinking (i.e. they'd rather pay back the $ I put into it and then an hourly rate for my labor...a significantly different figure results as you can imagine). One of the complicating issues is that they are friends of mine (don't do business with friends and family...I get now) and while we're able to speak about it candidly, they aren't prepared to give much ground. Also I haven't put as much $ into the LLC as of date (I'm $10,000 behind) but I've told them we'd have to make amends for that as well (i.e. appraise the property without the last $10,000 worth of improvements to the property).

What would be a good next step for me...I'd rather start with a "concrete" appraisal price and work back from that figure out of interest in the friendship...but in the same breath I don't want to get screwed by giving in too much. Me telling them all this doesn't seem to carry the right weight...I'm trying to avoid having a lawyer deal with this. Any tricks for making this work without WWIII breaking out (besides the method of me explaining it to them again). Is there a neutral 3rd party who could handle this?

Thanks!

 

[HomeGuru]

What is the name of your state? New Mexico

I'm a half partner in an LLC which has a commercial rental property. We filled out generic LLC forms from a Nolo law book. I don't have the documents with me but my partner is wishing to buy me out. He says that his buyout of my 50% position would only consist of the $ I put in to the endeavor 2 years ago without consideration of the labor we put in to making the property viable and the current value of the property. What is the typical way an LLC like this would be resolved? I'm telling him we should have the property appraised (as if we were selling it) with a monetary amount determined for a buyout...which should be significantly more than the $ I put in. Are either of us correct?
Thanks!

**A: you are corrrect and he is full of NM BS.

 

[mesillakid]

HaHa!!!!
Thanks HomeGuru!
You sent your message as I was entering another follow-up question. Any further thoughts in regard to my newer question (see above)?
Thanks!