Mitchell and Jerry maximized their earnings and achieved their goals without compromising.
Mitchell and Jerry were partners in a multifamily property portfolio that they built together over a decades-long partnership. Over time, their goals started to diverge: Mitchell wanted to continue owning and improving the properties, Jerry wanted to cash out and invest elsewhere.
They both wanted change, but they couldn’t agree on the details.
After months of disagreement, they decided it was time for Jerry to sell his interest. The problem was, Mitchell didn’t want to pay Jerry’s price, and they knew it would be difficult to find a buyer of a partial interest, which would require the new buyer to become Mitchell’s partner.
They needed a buyer/partner that would buy Jerry’s portion, and remain Mitchell’s partner on Mitchell’s terms.
Solutions for co-owners. Flexible acquired Jerry’s interest and became Mitchell’s “silent” Partner which allowed Mitchell to control all decision making, including completing his property improvement plans.
Get cash quickly. Jerry’s equity was converted to cash, which allowed him to take advantage of a time-sensitive investment opportunity.
Maximize earnings. Mitchell was able to increase property values through improvements and ultimately sold at a premium, benefiting from his continued effort and investment.
The extra twist: We added a clause that allowed Mitchell and Jerry to cancel the contract in case they reached an agreement amongst themselves prior to their Flexible transaction closing.
Mitchell and Jerry went their separate ways without sacrificing their individual outcomes.
“We got what we wanted. Hard to find anything about the process that wasn’t great.” -Mitchell K.
After seeing our Partnership terms with Mitchell, even Jerry thought they were attractive enough for him to reconsider cashing out.