Joint Venturing - A loaded Topic!

[UTCVenturesLtd]

Joint Venturing seems to be a broad term with many options. I have been looking into this area which leaves me with many questions:

1. Do you just have a Joint Venture Partnership Agreement or do you use a corporation with a USA?

2. Is there a maximum number of Joint Venture Partners that you can have? With shareholders, a corporation gets maxed out very quickly.

3. What does a lawyer typically charge to set up a Joint Venture Agreement?

4. What does a lawyer typically charge to set up a USA for a corporation?

5. When you try to find shareholders for a corporation, you have to be careful not to just be selling shares to the public. From what i understand you can solicit family, friends and coworkers. Basically those at arm`s length or a tight knit group. How might looking for Joint Venture Partners let you go beyond the "tight knit group" since they would be of like mind in accomplishing the same goals?

6. Is the "real estate expert" who is looking for the JVs strictly seeking funds only from the JVs or do the JVs contribute by taking on some of the responsibilities as in helping to find properties, doing some remodelling as a team, etc. In one scenerio, the "real estate expert" does it all with his team and seems to just use the money (OPM) of the JV partner giving them a 50/50 split of the profits less some sales fees etc. I would guess that is the ideal situation for the "real estate expert". On the other hand, if the JV partners are also working as a well oiled team, then i am assuming that they are equal to the real estate expert who mostly will be organizing the JVs as his team. The current JV that i am involved with a builder and one other partner lets the JVs divide up the profits after expenses. The builder gets paid for the work and has a 50% stake in the project as well. Myself and the other JV have a 25% interest each in it. We raised $120K in total and it looks like our project will sell for $200K. Builder gets $40K and we each would be getting $20K... not a bad return on a $30K investment which is just now going over a time span of one year! It makes me wonder why the builder wouldn`t just take out a loan for 18 months and keep all the profits? He would be further ahead.

I guess i am having some trouble in defining the Joint Venture Partner`s role and wondering too which is the best set it up for the real estate investor to build wealth and cash flow. It seems that you have to take each JV applicant indivdually and see how they would best serve what you want to accomplish. There are two types of investors, one who wants to set up a single hamburger stand and the other one who wants to go world wide with his hamburger stands by thinking "BiG". We know Donald Trump does not look after all of his investments by himself. He has built a team.

Dean
[email protected]

 

[AdamG]

Dean,

Excellent JV thread… I can’t wait to read the addition to this topic. I do agree that this topic is very broad and I feel from this discussion many members will be able to create amazing results just by knowing everything about JVs. So I thank you again for beginning the topic of Joint Venturing Partnerships…



I would like to understand the cost associated with legalities in the creation of such agreements, as well as how everything is covered and both parties are equally protected? With the vast amount of loop holes existing in our government systems, what precaution should the amateur investor take?



I am new to real estate investing nevertheless I learn very quickly and so far I feel I am headed down a path of explosive success… Being this ambitious and confident in successful creation of real estate wealth, I always have to step back and throw caution into the wind. When talking to certain individuals about real estate investing I tend to be completely honest and try to develop a relationship built on trust and reliability. These two factors are always the hardest to establish right off the bat. I feel in a joint venture partnership that these factors alone should be the first thing each person should establish before any paperwork is even discusses. Knowing each futures partners current situation (life, family, work, schedules, relevant connections, etc) will provide a clearer picture about how the partnership will develop.



I am looking to enter into a joint venture with the goal to find, renovate, tenet or sell properties… Please if you have the financing ready I have the skills and work ethics in place to move forward and beyond! If you are interested, I have a couple of properties here in Hamilton, Ontario that have potential and I would be more then happy to discuss them with any avid investor in hopes of joint venturing with them. I am not looking for a heap of profit money; I am in it more for the experience and knowledge acquired. I am willing to invest in properties anyways from Hamilton, Oakville, and Mississauga, right up to Toronto or Barrie… Please Email me! You won’t regret it!/fontc-->



Dean, you mentioned a part about partnering with a builder…

As a Carpenter, our work can be accomplished much quicker and with higher quality results if other distractions are minimized. There are lots of things happening in construction and as you develop your trade skills certain tasks can be run effortlessly leaving more room to, in essence, do more things and get more things accomplished. Having said that, a joint venture with “real estate experts” and/or the financial supplier would benefit the partnership enormously maximizing each partner’s outputs for maximum results. In your situation, when all parties walk away with your profits, I would suggest setting up another venture aiming higher and plan it with all the experience you have established from the first time. This way your builder will earn the amount he deserves for the work and other two partners will figure out how to increase their share by provide additional services or investments direction.



I have studied corporation and the operations in which they abide by, however I would really like to hear from experienced joint ventures corporation how they are ran and advice for others on areas they should become familiar with first.



In closing, I would like to thank everyone for reading and encourage discussion to Dean’s thread/topic…



Have a Great day & Happy investing…