Join Venture -- Need Advice
To get my business started, an investor friend I know is financing the property and we would split the deal 50/50.
I am interesting in buying bank owned properties thru a broker/investor who owns his own rehab business for 8 years and he is a broker for 2 years.
My question is…..
When we buy the property, I have to use the realtor’s purchase contract. Who should sign the purchase contract? Should I sign with my LLC or does my investor friend sign his LLC since he is using his money to fund the deal?
Thanks for reading and responding to my post.
Carol
Ohio
If the investor is putting up all the purchase and rehab money, it is very likely he would insist the property be titled in his name. I know I would.
Both of you need to meet with an attorney to put in writing exactly what your agreement is, property by property.
The agreement would spell out ownership interest, cost of money, allocation of cost of rehab if partners or their employees do the work, profit distribution at sale etc, etc, and especially an exit strategy if things do not work out.
Good luck.
I found this article very interesting:
http://www.johnsonandkleven.com/asset_protection_strategies.html