OfflineOK, I want to run this by the DG family here. I haven't officially used a JV agreement to do a partnership, but I know its good business practice to put everything in writing to cover all parties involved. This is a rough (VERY ROUGH) draft of a JV agreement, and I'm wondering if its too intimidating of a document.
A partnership is really a relationship, and would a document like this give someone a reason to doubt you or suspect foul play? I've got an AWESOME, SOLID deal I'm looking to partner with someone on. So, if you have $95K and want to split a profit of approximately $60K, please PM me. (I'll include info below as an attachment with the JV agreement. 
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Also, I'm looking for serious, hardcore feedback on this form to make it cover everyone involved, which is the whole intent of it, without it being intimidating or scary to someone.
I have been burned before, am I just being overly cautious here? Would it better to do an LLC? LLCs in CA cost $800/year, so that is why I'm trying to take this route, but maybe the $800 is worth it instead of using this agreement?
Please let me know your thoughts, what clauses and phrases should be reworded or removed, and if anything crucial is missing. Its a combination of 3 different JV agreements with customization for real estate investments. Like I said, it is VERY rough, but I don't want to scare people away with a contract that makes it seems like a great, winning deal is going to go wrong.
Candid thoughts appreciated across the board! Please see the attached agreement. (And deal analysis if you're interested)
bump!
I'm thinking you should probably seek competent legal counsel on this one
competent legal counsel?? Is that like military intelligence?
Always Looking to Acquire Houses | Always Looking to Amaze Investors
I think the agreement is the basic standard of contracts.
I think you and your perspective partner should go over basic terms of how its going to be split, ie 50-50, 60-40, 40-60, etc., time of agreement, and compensation from other party for early withdrawal from agreement
You'll be fine
I have bin in business for 25 years as a remodeling contractor, and there are all kinds of contracts out there. Is this a family member or someone You just got to know? I am old school and still work on a hand shake. You have to know someone well enough to work this way! I have a joint venture now with another DG member and its working out real good. We have no paperwork signed but like I said you have to know the person.
Good Luck
Jay
Jay C
Tammy you need to keep it plain and simple, state the facts,terms,and issue a mortgage note on the property and let the atty handle the rest. Trying to get to technical just clouds the spirit of the venture.
http://kendrickpropertymanagement.com/
http://rochesterapartmentrentals.com/?page_id=10
This is pre attorney. Its cheaper to have an attorney review a document (we're talking several hundred cheaper) than to write it up from scratch.
But I was thinking the partners could make this flexible and contribute to teh contract as to what they want covered and then write terms to keep it clear, then put it before the attorney to make sure its all legal and binding and to cover anything missed.
Unfortunately, I've had very simple contracts and gotten burned and I've had best friends that we did a deal on a handshake that went south (unbeknownst to us, he had gotten himself into drugs ... this was over 10 years ago, and has since gotten his life right and made it up to us 10fold) Even with the best of intentions, its meant to cover everyone's best interest so there's no ambiguity. But, its not supposed to scare people away. Its just supposed to be good business practice. But, I have had some honest people do work w/o a contract work out great, and I've had complicated contracts and had to (in that case was a contractor) physically go down to the contractor's house to get them to get their butts back and finish their work. (Not me, my hubby
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The JV partners I am working with, some are people I have talked to a little but don't know well, and a few I don't know too much about at all and 2 that I just literally met. So, not close relationships here; but a genuine interest in running it like a business and keeping everyone's interests at heart.
more like criminal defense attorney
I agree; things can go bad in this world as everybody is so litigious.
Always Looking to Acquire Houses | Always Looking to Amaze Investors
I agree; things can go bad in this world as everybody is so litigious.
Always Looking to Acquire Houses | Always Looking to Amaze Investors
it's a great idea to have a contract, especially with family, to keep things business-like. With that said, I don't believe that any contract will cover you in case things don't work out- who is going to sue a family member??
I too like to keep things simple, including contracts.
Learning and progressing every day,
Valerie
Valerie
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