OfflineI am about to go into partnership with some other DGers and want to put together the best joint venture (JV) agreement out there.
What are some essential clauses that we should include in our JV agreement.
I am looking for what other people have used or maybe people who have partnered with others and things came up. We want to makes sure we are all covered and don't want to exclude anything that is vital to put in there to CYA... all of 'em! I know the normal 'have a lawyer do it' answer, but really, lawyers that don't do the REI business aren't really going to know all the particulars that pop up in these types of deals.
Having things in writing to sort everything out ahead of time is an essential tool that increases our productivity and accelerates our business relationship!
Thanks for any feedback you can provide, or any links to other threads I may have missed that have specific clauses in them.
I was hoping there were other investors that have partnered together on DG.
Ok, I guess there isn't much interest in this topic, but it would be nice to learn from other's experiences, good or bad.
Best to you,
Tammy,
I also am preparing to enter into what could be 2 or 3 seperate joint ventures of my own. Not with any DGer's at this time but I have one project moving forward and two others on the table being discussed at this time. I would also like to know if there are any things that should be considered as priortity in the legal aspect of the JV agreement. I guess the only other thing I can think of aside from an REI lawyer would be to call the academy to ask them if anyone there would know of some particulars. I am sure Dean has been through this a time or two in his range of experiences so they have to know something just based off of his actions in the past.
Other than that I guess that any JV that has taken place in the past with any business would likely share some commonalities between them so any member of a JV would likely have value to add as well.
Let me know what or if you find anything out on this. Could post it back here and I can catch up with the details.
Thanks,
Jeff
Suggest you check with Carol (freeindeed). She is apparently partnering with dgfamily across US. Of course, you should be able to get advice from Dean, he has more experience than any of us and has already proven his willingness to share and help us all to be successful. Congratulatiions on your new venture. Semper Fi. D-LO
D-LO, I just want to say you amaze me! 82 years young and being on the computer on a message forum is just phenomenal, not to mention getting involved in REI! My hats off to you. Just in awe of your determination and going out there and learning new things!
I'm just looking for things to take preventative measures. I know that one DG member had partnered with someone and there was a disagreement about the EMD check and how to handle it and then the partner backed out or something at the last minute and the one partner lost her EMD money. Its things like this I wanted to cover in the agreement. Its always best to think ahead because working together can be a great thing, but everyone does business differently and it is good to have all the expectations laid out ahead of time to Cover everyone's assets for the protection of all involved.
I'll ask Carol, I think she does mostly assignments, but this would be for acquiring a property, fixing it up and then leasing it out to own.
Yeah, I didn't want to just make another LLC, I wanted to have the JV agreement for the deal at hand. Didn't want to make it overly complicated, but wanted something to govern the partnership.
that happened between other DGers who partnered up, I hope that we can strike up this thread again and anyone that has had experience with partnering can share then so we can formulate a JV agreement specific to RE Investors and our specific needs. I will gladly share that finished document so everyone can benefit from a solid JV agreement, as well as learn from other ideas to use when partnering so everyone is covering their butts.
Matt had shared a great thing on another thread, but if lending money to another investor you don't really know, a piece of paper and document may not be enough. Putting a lien again the property would guarantee you get your money back.
I'd like to add to that, if there are other things that a note can be secured against because the deal is only in the offer stages and earnest money is being fronted.
Setting ourselves up with protection is smart business practice and shouldn't be looked upon as being untrustworthy, but rather a necessary safeguard to put in place to assure everyone is protected.
Please chime in with any other helpful things to include when partnering with other investors.
It is CERTAIN we will SUCCEED!
That I learned in my private money lending course. NEVER lend money directly to someone; ALWAYS put it in escrow and reference the address the money is for, and make sure your name will be in the contract somewhere and the amounts each partner has put up for the deal.
Always CYA. My free report in my 2nd link has many points in there that apply to someone lending money to us as investors, and we should be doing the same things when we're the ones lending our money to others.