- Joined
- Apr 17, 2008
- Messages
- 40
As we know we all have limited capital ourselves so we look to create Joint Venture partnerships in order to raise captial to purchase more real estate. I am wondering of anyone has experience/can advise on if/how the seller can become your JV partner....Here`s the scenario:
Seller of a property I am interested in (he is also a realtor) bought the property end of 2007, it was grossly undervalued and so a few months later he is flipping it, mostly to free up capital and improve his Debt Service Ratio so he can buy a couple other things. He will do very nicely. I proposed and he likes the idea, that we can be partners. I would buy his porperty and take title and the 20% downpayment would come from his proceeds of the sale. He still gets cash back from the sale and he remains 50% JV partner.
Can this be done? I do not want to create a sitiution that the banks view as fraudulent. If anyone has experience with structuring this sort of a deal please let me know. Perhaps an abatement or Vendor takeback?? And how would the lawyers structure this? Should he be on title or can we just use a JV agreement and perhaps register a caveat.
thx
Seller of a property I am interested in (he is also a realtor) bought the property end of 2007, it was grossly undervalued and so a few months later he is flipping it, mostly to free up capital and improve his Debt Service Ratio so he can buy a couple other things. He will do very nicely. I proposed and he likes the idea, that we can be partners. I would buy his porperty and take title and the 20% downpayment would come from his proceeds of the sale. He still gets cash back from the sale and he remains 50% JV partner.
Can this be done? I do not want to create a sitiution that the banks view as fraudulent. If anyone has experience with structuring this sort of a deal please let me know. Perhaps an abatement or Vendor takeback?? And how would the lawyers structure this? Should he be on title or can we just use a JV agreement and perhaps register a caveat.
thx