We`re considering a JV with another individual. He fronts the downpayment and closing costs, we did the research. We are not `familiar` with him and are doing our due diligence regarding his character. However he is still concerned about his investment "leaving town". After talking to a lawyer I`m more confused than ever as he`s proposed that we take out a first mortgage to our co-owner for the downpayment amount. However this is a pre-purchase sale and our intention is to flip it before it comes to completion for a 50/50 profit split after reimbursing all expenses to the money partner. Is simply putting both names on title and a contract stating our intentions enough to keep it accountable? Any advice is welcome. Thanks!
JV legalities
- Thread starter Kiara
- Start date
- Joined
- Aug 22, 2007
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If the partner takes out a 1st position charge you will have major difficulty getting the rest of the property funded if you have to close on it in the future (i.e even though it is a pre-build - what are your plans if the market is soft when the property is ready and you are forced to close on it because you can`t sell it).
A joint Venture Agreement that is registered on title is just about as strong as the first position placement he is proposing. There is a LOT involved in doing a Joint venture correctly and one small mistake can cost you thousands (i`ve witnessed it happening hundreds of times in the past).
For more information you might want to:
a. Use the search function on this site and search for the other many discussion on joint ventures that are going on. Do separate searches for "JV", "Joint Venture", "Partners" these three different searches will help ensure that you find most of these conversations.
b. Check out the Joint Venture Secrets Program that thousands are using across the country to make sure they don`t make mistakes. Here`s a direct link:
http://www.realestateinvestingincanada.com/viewcategory/165
Trust this helps you move forward!
A joint Venture Agreement that is registered on title is just about as strong as the first position placement he is proposing. There is a LOT involved in doing a Joint venture correctly and one small mistake can cost you thousands (i`ve witnessed it happening hundreds of times in the past).
For more information you might want to:
a. Use the search function on this site and search for the other many discussion on joint ventures that are going on. Do separate searches for "JV", "Joint Venture", "Partners" these three different searches will help ensure that you find most of these conversations.
b. Check out the Joint Venture Secrets Program that thousands are using across the country to make sure they don`t make mistakes. Here`s a direct link:
http://www.realestateinvestingincanada.com/viewcategory/165
Trust this helps you move forward!
- Joined
- Dec 16, 2008
- Messages
- 1,005
QUOTE (DonCampbell @ Sep 21 2007, 08:42 PM) b. Check out the Joint Venture Secrets Program that thousands are using across the country to make sure they don`t make mistakes. Here`s a direct link:
http://www.realestateinvestingincanada.com/viewcategory/165
I have used many of the steps in this program to close on 51 such JVPs.
Good luck!
http://www.realestateinvestingincanada.com/viewcategory/165
I have used many of the steps in this program to close on 51 such JVPs.
Good luck!