Member of single purpose LLC for real estate holding wants to sell shares and exit.. anyone have experience?
Purchased a real estate property via a single purpose LLC and with partners some years back

We obtained financing from a bank

Would like to sell my 20% interest stake to the other members and exit the LLC

Any members who have more than 20% interest must sign on the note, so I'm on that.. does this require a "refinance" or just requesting removal from the Loan

Anybody have any experience with this kind of transaction?
[{"id": "ijw12z6", "text": "Look at transfer provisons in your loan agreement.", "replies": [], "depth": 1}, {"id": "ijw1exn", "text": "Firstly, I would read the LLC OA. Then, I would read your loan documents. One of those two documents is likely to specify what happens in this scenario. I imagine the bank may want to just make sure that when you leave that the other parties can still meet and guarantees that are still in force. Other than that, you should be able to exit your position.", "replies": [], "depth": 1}, {"id": "ijw1l38", "text": "Just reach out to the lender, depending on how strong you are compared to the other partners they might just release you assuming the purchasing partner is already guaranteeing the loan and you sell your shares. It's probable assuming all partners are somewhat equal in terms of their guarantee but if you have all the outcome income/assets compared to the other partners they might give you a hard time.", "replies": [{"id": "ijxbioj", "text": "I would expect banks to be less lenient when current interest rates are significantly higher than the rate on the current note.  But this is without having any relevant experience.\n\nAre current interest rates really a factor?", "replies": [{"id": "ijxc8ie", "text": "Yes and no, I'm a commercial lender and if you were my client I would try to release you from the loan as is, it's too much work to refinance and most banker wouldn't make any money on it anyway because only the house gets paid on the rate. I would keep in touch and hope you need to borrow more money in the future as you are obviously a high earner and would owe me if you ever needed a lender in the future so it would be good business.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ijwogtm", "text": "Your Operating Agreement should lay out how this will go. There should be a section for terminations and buy outs. Usually it's a percentage of full value for you to leave the partnership early by selling shares of your asset, but all OAs can be different.", "replies": [], "depth": 1}, {"id": "ijwr5r5", "text": "As far as the OA.. the partners are happy to acquire the additional shares.. my concern is more about making sure I have no liabilities once I do so", "replies": [], "depth": 1}, {"id": "ijwwbea", "text": "I have done this several times.  The Operating Agreement for your LLC should stipulate how a Member would transfer shares.  Consult with the attorney who drafted the Agreement.  There is normally an addendum which removes you from the entity.  However, you need to speak with the lender to be removed as a personal guarantor (I assume you are).", "replies": [], "depth": 1}]