My husband is areal estate investor in an Llc with 1 partner. They recently purchased a home to flip and after the improvements were made I fell in love with the house and we would like to buy it from the Llc at full market value. Is this possible? Thanks
I am hoping that one of the Lawyers that frequently visits our forums will offer you some guidance, however your question would be best answered by a Real Estate Lawyer familiar with LLCs. ?You may want to reach out to a professional for advise on this possible purchase.
I’m no lawyer (so my 2 cents is worth about that) … but I suspect it all depends on ‘details’ in the LLC Articles of Organization and Operating Agreement. If there are other investors (other than your husband and partner) who are expecting to benefit from LLC cash-flow and/or ‘flip sale’ profits, then you might be circumventing this objective since the resale to you and your husband may not be considered an ‘arm’s length transaction’ (even if you deem it to be a ‘market value’ sale). If the LLC parties are just your husband and his partner (no other investors involved), then I suspect it would be relatively simple to resolve via written consent from your husband’s partner to enter into this type of transaction. BUT as Patrice suggested, it would be best to get the opinion of a real estate lawyer who will likely want to take a gander at the LLC Operating Agreement.?