JV Investor Advice

[ramerba]

Hi,

I am looking to participate in a JV project with some funds. There is the option to be on title and I am wondering if it is a prudent thing to do?

Do you have any other single pieces of advice that you would give going into a Joint Venture?

Thanks,

Bryan

 

[RobMacdonald]

In my opinion, it is best if the deal works with both partners on title. If you are supplying a portion or all of the downpayment, then the lender may require you to be on title.

If you property is positive cashflow, then it may be beneficial to you on future mortgage applications. You want to make sure that this property does not affect your long term goals and objectives.

Feel free to call me offline if you`d like further advice.

 

[ramerba]

Hi Rob,

I heard recently that you have made a transition recently in your life and I trust that your new path is going great. Thank you for the good, solid insight. I will run with that for now.

Bye for now,

Bryan






QUOTE (RobMacdonaldCMT @ May 1 2009, 11:00 AM) In my opinion, it is best if the deal works with both partners on title. If you are supplying a portion or all of the downpayment, then the lender may require you to be on title.

If you property is positive cashflow, then it may be beneficial to you on future mortgage applications. You want to make sure that this property does not affect your long term goals and objectives.

Feel free to call me offline if you`d like further advice.

 

[Thomas Beyer]

QUOTE (ramerba @ May 1 2009, 11:13 AM) I am looking to participate in a JV project with some funds. There is the option to be on title and I am wondering if it is a prudent thing to do?

Do you have any other single pieces of advice that you would give going into a Joint Venture?

Actually 3 pieces of advice:

1) If you are on title you may be asked to co-sign a mortgage and thus, you are liable for the mortgage .. so you could potentially lose more than you invest !

2) Thus, a higher profit % is due you if you co-sign a mortgage as opposed to just writing a cheque and signing a JV agreement !

3) Better is to file a caveat after the deal closes to protect yourself as an investor !