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I had a client referral come in today that was a dispute on an old debt for $70,000 on a rehab project gone bad. They are a partnership that owns 6 properties, 1 outright for $40k, 1 that is around $40k under water, and 4 other properties that are about breakeven. Approx. $700k for all units. The one partner WHO OWES wants to walk away from the $70k debt and say take the properties. The other partner wants to get the $70,000 repaid. And doesn't want to just forgive and forget. What should the correct recommendation be? If anyone can shed some light I would appreciate it. This is beyond my core competency.Cheers,-Rick.Rick CarlsonPresident, Ace Business Brokers800-985-4939
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Thanks Don. I told the guy I didn't feel comfortable handling the situation and said I'd put some feelers out there and if he didn't hear from me it's not b/c I'm ignoring him, it's b/c I couldn't find anyone that I felt comfortable with recommending to deal with it. Take care. Cheers,-Rick.
Rick, the way you describe this, it sounds like a Real Estate situation. If that is the case, you would probably be better off asking for referrals at the offices of the local Real Estate Association. They are in the best position to know who specializes in these kinds of arbitration or mediation issues, and specifically within that jurisdiction.It does not sound like a transactional issue, although it could turn into that, down the road. As a Broker - and I am not an Attorney - but I would be careful not to get in the middle of something like this because, just as you state, like you, this would be beyond my "core competency". This could get real legally involved and real ugly! I would keep an arms' length.
Web reference: www.bafgroup.com