First JV - Contract

[CollegeRentals]

I`m entering my first JV on a property in Brantford. I`ve read up on many of the posts and appreciate the advice you have all provided. With that said, I`m looking for a General JV Contract that I can then reword based on this specific deal.

If it helps at all, the deal is a detached single-family home, in which I provide the down-payment, my partner secures the mortgage, and we split all expenses and income 50/50.

Any advice or direction for a contract is appreciated.


Cheers,
Cameron

 

[invst4profit]

No advice on the JV aspect but as you are not a REIN member you will not be able to access contracts on this site.
One word of advice make sure you crunch the numbers really well as single family homes rarely produce good, if any, cash flow.
If you can buy below market that will be your best option for making a profit.

Good luck.

 

[vandriani]

It is always recommended that you consult with a ltywer familiar with JV agreements. Typically they have a version already developed that require minor tweaks. This would not cost that much. If the laywer has to create oie from scratch the costs will obviously get larger.

 

[CollegeRentals]

Thanks for the advice invst4profit - I`m using this Single Family Home as a student rental, which in my brief experience has provided the best cash flow opportunities.

Vince, appreciate the insight that my lawyer may have pre-drafted JV contracts - I`ll give them a shout.


Cheers,
Cameron

 

[orei]

Send me a quick message at the address below. I can provide you with a document containing some things to consider when setting out on a JV. You can also search for some of the past threads on this forum - lots of good info there.



QUOTE (CollegeRentals @ Dec 3 2009, 01:34 PM) Thanks for the advice invst4profit - I`m using this Single Family Home as a student rental, which in my brief experience has provided the best cash flow opportunities.

Vince, appreciate the insight that my lawyer may have pre-drafted JV contracts - I`ll give them a shout.


Cheers,
Cameron

 

[wgraham]

QUOTE (CollegeRentals @ Dec 3 2009, 10:24 AM) I`m entering my first JV on a property in Brantford.

If it helps at all, the deal is a detached single-family home, in which I provide the down-payment, my partner secures the mortgage, and we split all expenses and income 50/50.

Hi Cameron,

just to let you know, I wouldn`t give away 50% of my property just for securing a mortgage. Typically my investors put up the 20% deposit and I get the mortgage, find property, manage etc and we split 50/50. For simply getting a mortgage I would be willing to give up a much much smaller portion of the property.

Each deal and situation are different but it sounds like you are paying a heavy price to use someone elses credit.

good luck
Wade

 

[JBagorio]

QUOTE (wgraham @ Dec 3 2009, 02:56 PM) ... Typically my investors put up the 20% deposit and I get the mortgage...

Hi Wade

I totally agree with you, he is giving the partner too much % given that he/she is not even putting any money in.

I have a question for you regarding the above quote. True that your partner is the initial funds or money provider and that you are the expert and the one that will look for financing. My question is, are you also on title? Isn`t the bank requiring you to be on title to be able to get financing? Is your $ partner OK with you on title? I have yet to land my fist JV and I have been talking to possible investors and what I found is that, most don`t want me to be on title.

Just want to here you experience in the matter...Thanks!