Hi all,
Has anyone successfully performed any joint ventures? I am interested in doing a joint venture with another investor.We are both bringing two different things to the table. He’s putting up cash and I’m putting up lending. For at least the first one anyway.
We will both be doing the work (thinking something along the lines of a reno). I know that I need to talk to my solicitor etc etc, that is obvious. I just want to know what others experiences are with this sort of thing and particularly how they structured it.
Any comments?
Cheers,
MarkyMark
I would suggest, you form a trust, with yourself as sole trustee or sole director of the trustee company. Get the loan in your name with a formal loan agreement drawn up, with you friend lending money to the trust for deposits. Also have a joint venture agreement drawn up outlining profit sharing, risk sharing etc. Then you can distribute profits to the beneficiaries – you and him/her, maybe as trustees of your own trusts.
But this way you will be taking all the risk, – whihc may be mitigated by your other agreements. eg he/she will compensate you if anything goes wrong and you ‘go down’. And this will affect your borrowing capacity, but not his/hers. Which could be good because you can then later form another trust in his/her name and go again.
Or
You could simply borrow money from your friend and do it on your own.
Terryw
Discover Home Loans
Mortgage Broker
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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