[quote user=ThomasBeyer]Voting shares control directors. Directors control management. Management manages corporation. Beneficial ( aka non-voting or preferred) shares can be used for money in- and out-flow - independent of control/voting shares. One way, not the only way, but one way to structure a 50/50 JV is: you could own 100 A voting shares for $10 and control the corporation, and each partner owns 100,000 B shares ( non-voting ) each for $10. Thus, shareholder capital is $30. Then partner puts a loan into corporation, say for $75,000 which is the cash to close plus a reserve plus closing costs. Another option is to open a corporation where only you own shares, and then partner gets added later after asset is acquired, using A, B or C shares ( ie option #4 above if partner is not required or desired on mortgage application, for example). You could also use trusts, undivided interests or LPs. Many options exist.
Greetings Thomas,
How many people have said 'thank you' to you over the years for the generosity you show in sharing your wealth of information. Many many I am sure. I for one am grateful!
I understand the benefit of using a corp for my situation but I am not sure that there are many significant pro's for the simple "townhouse condo" type deals that I have been doing. To me it almost makes more sense to simply buy the property and bring in the JV partner after with a registered interest on the title and subject to a JV agreement. This way I can move fast on a deal and will know the exact cash to close for the investor. I think that for my first one or two the KISS principal should probably be in order (Keep it simple stupid).
Once again Thomas, thank you for sharing!
Mark Rivers