Joint Venture
Hello, I was thinking about establishing a joint venture with a cash partner (since we are unrelated) with the goal of acquiring Sub2 deals until I built up my cash reserves to $25,000.
The cash partner will put up cash for upfront costs such as repairs, marketing costs and holding costs incurred for finding tenant buyer, etc and for other costs that can occur later.
The cash partner will be reimbursed for his upfront costs from the tenant buyer's down payment. The remaining reimbursement for his upfront costs (if any remains) and other costs (that incurred later) will come from our back end profit. The monthly cash flow and back end profit after his costs reimbursement will be split 50-50.
Now we will transfer title (in all of our Sub2 deals) to land trusts for privacy and for lien and judgment protection. The cash partner and I will both be beneficiaries in the land trusts. However title between the cash partner and I will not be taken as tenants in common (I believe).
Now will securities law come into play since we did not take title as tenants in common for our joint venture?
Thanks.
I might have some investors that would be interested!! Private mail me with more details!!
MIKE