QUOTE (RArora @ May 21 2008, 06:09 PM) Iv been doing a lot of research online and like the option of owning using a JV partnership. However how does one make sure that its a safe transaction and you`re not being `scammed` if you`re the money partner?
What is the due diligence one can do? (the CTV special 2 weeks back showed something on similar lines where people got scammed and lost everything because of some selfish unscruplous people)
Those are good questions to ask, and I`m sure others will add some that I`ve missed, but off the top of my head.....
1) Do they have a proven track record of successful real estate transactions and/or JV`s?
2) Do they provide references of people who have done JV`s with them?
3) How thorough is their research on the economics of the area and on the property?
4) Are their numbers backed up and/or verifiable?
5) What systems do they have in place to faciliate the entire transaction?
6) Do they ask you about your goals, or are they focussed on your chequebook?
7) What does their credit report and criminal record show?
8) What does your gut feeling about them say?
9) Do they tell you to get your own legal representation, or do they try to foist their lawyer on you?
10) How thorough is the JV Agreement?
11) Does the JV agreement spell out the responsibilities of each party, along with an exit strategy?
So, that should get you started!
As well, I see you`re in Ottawa. I am too, so if you have any other questions, please feel free to message me and we can go out for a coffee or something.
Have a good one!
JohnS
