50/50 .. is this fair ?

[Apt_Bldg_Ontario]

QUOTE (ThomasBeyer @ Aug 2 2010, 10:04 AM) why not 25:75 or 40:60 or 50:50 ?

That`s a very good point

I think it all depends on how much the investor puts down- the more he puts down, the less the expert can take for himself.

 

[Apt_Bldg_Ontario]

QUOTE (jarrettvaughan @ Aug 2 2010, 10:48 AM) 5%-6%????

Where is this?

Toronto, Cambridge, Kitchener, Hamilton

 

[housingrental]

Of note: poster is refering to larger buildings.
When you include cost of renting these fees are well below market for single family in kwc.
QUOTE (lihipr @ Aug 3 2010, 12:35 AM) Toronto, Cambridge, Kitchener, Hamilton

 

[housingrental]

I support lihipr`s general sentiments.
In many deals a high percentage ownership from the "expert" is hard to justify - and most of the benefit provided from them can be derived from a good quality mortgage broker, realtor, and property manager.

 

[GaryMcGowan]

QUOTE (housingrental @ Aug 3 2010, 10:17 AM) I support lihipr`s general sentiments.
In many deals a high percentage ownership from the "expert" is hard to justify - and most of the benefit provided from them can be derived from a good quality mortgage broker, realtor, and property manager.

You sell a product for a certain share of the returns, its that simple. If I as an expert expect to keep 50% of the share I partner an investor that wants 50% of the share. I would also add that if you have track record and all your deals are 50% then it becomes easier to find 50% partners.

 

[Ctan]

Hello

I’ve recently been approached with the idea of being JV Partner, but have never looked into the details of one before.

Is it common for a JV deal to be structured as:

Money Partner: Provides money for 25% Down Payment on the purchase price and any closing fee’s.
Expert Partner: Provides the knowledge and makes all arrangements to purchase property. Provides a plan for the best return including timeframe.

Sale of Property
============

Money Partner: Receives the 25% Down Payment back as well as the closing fee’s.

The remainder of the return is then split 50/50 between the Money Partner and Expert Partner



Do most usually use the above as a starting point? Are arrangements usually further negotiated?

How about the title? Is it 50-50 title on property for both?

 

[Thomas Beyer]

How about the title? Is it 50-50 title on property for both?

Sometimes it is sometimes it is not.

Ownership can be in many forms:
Undivided interest
Tenant-in-common
Trust
LO
Corporation

It depends how you set it up.

And as always: in life you don’t get what you deserve, you get what you negotiate !


Thomas Beyer, Asset Manager & Improver, Hard Asset Investor & DeFi Asset Hodler, Author, Father, Mentor, Hiker, Kayaker www.prestprop.com

 

[Ctan]

Sometimes it is sometimes it is not.

Ownership can be in many forms:
Undivided interest
Tenant-in-common
Trust
LO
Corporation

It depends how you set it up.

And as always: in life you don’t get what you deserve, you get what you negotiate !


Thomas Beyer, Asset Manager & Improver, Hard Asset Investor & DeFi Asset Hodler, Author, Father, Mentor, Hiker, Kayaker www.prestprop.com

Thank you for your reply