I own (via inheritance) a share in a Limited Partnership that owns an Hotel in Prescott, Arizona. Before the market got slammed 2 years ago, it was paying dividends every quarter, and the management was about to sell the property. My share was estimated around $35,000.
With the market drop, the buyer backed out, and revenues went down. I know the management is handling the market situation well, but I need to cash out in the next 30 days (color me motivated).
So I need someone to buy me out and take over my share. I only need $20,000 out of the deal.
Is this considered “commercial paper”? Who should I be talking to about this?
If you are going to say “use the internet” then please tell me what sites or keywords I should search under, etc.
I think your going to have to go back to the party managing the Limited Partnership!
My very first question would be “What State is the Limited Partnership filed in?” (I would like to say Arizona, but it is possible to be say “Nevada” and it applied to to be qualified to do business in Arizona" this can make a difference in how the LP is regulated!)
A Limited Partnership share is not normally sellable as most are restricted from public sale, so you need to go through this with the party managing the Limited Partnership!
If you can sell it you will need to have the party managing operations to put in writing the total number of shares outstanding? Whether there is underlying financing like a 1st TD?
How the property is managed and the last 2 years of complete certified financial statements?
When was the last time the property was appraised?
If it is a restricted share situation your only choice to sell out is to the actual partnership and your at there mercy as to whether they (Someone in the partnership) will even make an offer? For what price? And at what terms?
If you can sell it to someone in the public you need to find out from the party managing the investment whether you need to sell to a sophisticated investor? And you may need to get a new appraisal at your expense to support value for a sale!
Your not going to use the internet because each entity is different and you need specific information from the actual Limited Partnership managing party!
If it is restricted share it is illegal for you to market it or sell it as a security to the public!
I would agree with Gold River on this.
In similiar cases I’ve read about if the partnership doesn’t buy out the shares it leaves you with an opportunity to then be free to seek outside buyers. The partnership would have first right to buy.
I would contact Robert Kiyosaki. A few years ago he moved his company from Hawaii to Scottsdale Arizona. Bing or google him and you’ll turn up his number.
I think he generally handles larger property investments. But I’d try.
I lived in Phoenix Arizona for many years (trying to get back their) and I have gone to Prescot many times. Went to school at Embry-Riddle Aeronautical University.
Give Robert a try.
Thank you for the input.
The partnership has told me I am free to sell to an outside party, but appraising the actual value is apparently tricky for hotels.
It looks like they may be trying to sell it again, in which case i will be cashed out (though likely a month or two later than i really need it), but i may try contacting Mr. Kiyosaki.