JV with co worker question

[ronwin]

I have a question about doing a JV with a co worker.

The situation is this:
We are looking at doing a completely 50/50 JV
-Both put up 50% of down payment
-Both put up 50% of closing costs
-Both are on title
-Both split managing duties 50/50 (i know this is a tough one to pin down)
-Split cash flow/profit/loss 50/50

My questions are:
Is it best to have each party apply for 50% of the financing (I dont know if this is possible) and each service there own debt?
Does the bank allow this?
If not, do we jointly apply for a mortgage? If so does each others financials (ie income, net worth) have to be disclosed to the other party or does the bank look at this information separately?

The reason I ask is that it could become awkward if we have to disclose this information to each other being that we are co workers.

Thoughts welcome.

Thanks in advance.

Les

 

[ChrisDavies]

QUOTE (ronwin @ Feb 26 2010, 10:23 AM) I have a question about doing a JV with a co worker.

The situation is this:
We are looking at doing a completely 50/50 JV
-Both put up 50% of down payment
-Both put up 50% of closing costs
-Both are on title
-Both split managing duties 50/50 (i know this is a tough one to pin down)
-Split cash flow/profit/loss 50/50

My questions are:
Is it best to have each party apply for 50% of the financing (I dont know if this is possible) and each service there own debt?
Does the bank allow this?
If not, do we jointly apply for a mortgage? If so does each others financials (ie income, net worth) have to be disclosed to the other party or does the bank look at this information separately?

The reason I ask is that it could become awkward if we have to disclose this information to each other being that we are co workers.

Thoughts welcome.

Thanks in advance.

Les

You each provide your application to your mortgage broker separately, but apply jointly. The broker handles it directly, and if there`s a problem, they`ll just say `there`s a problems and no, it`s not you`. That`s as much as they can disclose. They`ll find the best way to structure the financing, and take care of your concerns with information privacy.

 

[Thomas Beyer]

QUOTE (ronwin @ Feb 26 2010, 11:23 AM) ..
-Both split managing duties 50/50 (i know this is a tough one to pin down)...
Thoughts welcome.

..
don`t do it 50/50 !

The person doing most or all of the work HAS TO GET more than 50% .. otherwise it will not work !

do a 30 / 70 deal perhaps where the money portion gets 70% ! then the party working is properly compensated !

 

[BrianPersaud]

QUOTE (ChrisDavies @ Feb 26 2010, 03:01 PM) You each provide your application to your mortgage broker separately, but apply jointly. The broker handles it directly, and if there`s a problem, they`ll just say `there`s a problems and no, it`s not you`. That`s as much as they can disclose. They`ll find the best way to structure the financing, and take care of your concerns with information privacy.


Furthermore, Why have both of you qualify together? With recent changes to investing, you are mainly going to be limited by the big banks and they will eventually cap both of you. Plan 5 steps ahead.