- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Failed business....
Posted on 2/13/24 at 9:33 am
Posted on 2/13/24 at 9:33 am
I started an LLC with 2 other guys to build and flip two homes south of Houston. One of the partners (Partner A) supposedly is an experienced builder. But we are over budget and way behind schedule. The original loan was due December 2023. Partner B and I agreed to take over the project and started the process of getting a new loan and contractors to finish it out (both houses are about 92% complete). Unfortunately Partner B had an accident on NYE and has been in a comma every since. I'm currently in limbo because I can't do anything without his signature and the way the LLC is written his wife can't sign for him. The original bank has given me until March 1st to secure new financing and even though I'm approved for the loan, I still need Partne B's signature to complete the sale from the original LLC to the new one.
I woke up today with the realization that we are probably going to foreclosure. I just need to know my rights and what can I do to lower the blow. Right now we owe $460,000. The bank did a appraisal on both and they came in at $350,000 each unfinished.
What type of lawyer should I look for and does anyone in the Houston area has any referrals? Thanks
I woke up today with the realization that we are probably going to foreclosure. I just need to know my rights and what can I do to lower the blow. Right now we owe $460,000. The bank did a appraisal on both and they came in at $350,000 each unfinished.
What type of lawyer should I look for and does anyone in the Houston area has any referrals? Thanks
9
Posted on 2/13/24 at 10:44 am to sdc74
quote:
Right now we owe $460,000. The bank did a appraisal on both and they came in at $350,000 each unfinished.
So you have $700K in assets and owe $460K?
Can you find a buyer for them in their current almost finished state, pay off the debt, and walk away with some cash?
quote:
What type of lawyer should I look for and does anyone in the Houston area has any referrals? Thanks
Which lawyer originally drew up the docs? Go to them first?
quote:
I'm currently in limbo because I can't do anything without his signature and the way the LLC is written his wife can't sign for him.
Even if she has a POA? Or does she not have one?
This post was edited on 2/13/24 at 10:45 am
Posted on 2/13/24 at 10:56 am to sdc74
quote:
I'm currently in limbo because I can't do anything without his signature and the way the LLC is written his wife can't sign for him. The original bank has given me until March 1st to secure new financing and even though I'm approved for the loan, I still need Partne B's signature to complete the sale from the original LLC to the new one.
This should be a real wake up call for anyone that's a Member of an LLC like this. I'm a Member of a 3 person LLC doing the same thing, but we all signed an Authorization that any of us can sign independently for the LLC. Of course, that could possibly come with its own set of issues down the line, but at least we won't get stuck in a situation like this.
Posted on 2/13/24 at 11:30 am to sdc74
quote:Given that the collateral value seems to easily cover the UPB of the loan, it's surprising to me the bank won't let you just finish out with some back-ended penalties or whatever. Are they claiming that even a "work out" like this requires his sig?
Right now we owe $460,000. The bank did a appraisal on both and they came in at $350,000 each unfinished.
There's really no solve for the disabled Member?
This sucks man. I hope your partner can return to some kind of normal life eventually and that you can complete your project.
Do you mind sharing the cash required to complete and the estimated net sales values of the finished homes?
Posted on 2/13/24 at 1:27 pm to LSUGUMBO
quote:
This should be a real wake up call for anyone that's a Member of an LLC like this. I'm a Member of a 3 person LLC doing the same thing, but we all signed an Authorization that any of us can sign independently for the LLC. Of course, that could possibly come with its own set of issues down the line, but at least we won't get stuck in a situation like this
Yeah, I was trying to not beat up the OP since that won't help him any.
But for anyone else reading this thread, this is why it is so critical to get competent professional help on the front end when you are setting stuff up. No one wants to think about stuff going south when you are excited to begin... but someone needs to and have a plan for if that happens.
Posted on 2/13/24 at 1:53 pm to LSUFanHouston
quote:
Yeah, I was trying to not beat up the OP since that won't help him any.
Definitely not my intention, but I felt like it was worth pointing out.
OP- does your business partner have a spouse that might have POA? I'm sure that avenue has been explored, but on the off chance that they signed one for another matter and it's still effective, that might work in a bind like this?
Posted on 2/13/24 at 2:24 pm to sdc74
Holy crap. Man, I'm so sorry.
Posted on 2/13/24 at 6:49 pm to sdc74
quote:
I can't do anything without his signature and the way the LLC is written his wife can't sign for him.
As noted, ask the wife is she has his power of attorney to act on his behalf. Otherwise, an interdiction/guardianship may work, but that is rather involved and potentially expensive.
Posted on 2/13/24 at 6:59 pm to sdc74
quote:
I'm currently in limbo because I can't do anything without his signature and the way the LLC is written his wife can't sign for him.
I would be curious to see this language.
Posted on 2/13/24 at 7:17 pm to sdc74
N
This post was edited on 2/13/24 at 7:21 pm
Posted on 2/13/24 at 9:15 pm to sdc74
I am sorry you are going thru this. i wish your partner a speedy recovery. One option is to try to raise funds from other sources (other assets, relatives, friends) and purchase the note and assignment of the collateral from the bank. You would then be the creditor to the LLC and could work out of the issues on your schedule.
Posted on 2/13/24 at 9:29 pm to sdc74
quote:
The original bank has given me until March 1st to secure new financing and even though I'm approved for the loan, I still need Partne B's signature to complete the sale from the original LLC to the new one.
The way I read this you’re an equal partner in a 3 man project and two of you have decided to go it alone and sign off the proceeds of company A to a new company B you planned to create. Is that correct? If so, how is Partner A handling it, if he even knows? Can you work with him to at least get the projects closed and move on?
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News