I think I have a suitable structure set up to invest in myself. Thanks to Wealth Guardian, I now have a corporate trustee and family trust structure that suits any investments I want to make.
However, my first opportunity is to buy investment properties with a friend in a joint venture way (he has a company, but no trust). We have a couple of promising deals available, which we want to split profits 50/50 but have come up against the wall of how to set it up.
Having heard the need for a system at the Property Investing Masters seminar and the need for property structuring from Wealth Guardian, I know why, I don’t know how.
More to the point, I know we need to get professional advice, but I’m not sure what questions I need to ask. In other words, I know I don’t know enough, but I don’t know what I don’t know.
Any starting suggestions would be gratefully received.
Hi Lucky Phil
I would just make an appointment with a great accountant, explain to him what you have here in your post and see what he suggests. I think the questions will just happen when you are talking it over with him (or her for that matter!)
Hope this made sense!
[
]Lucky Phil,
One way to do is setup a separate new trust for yourself and your business partner. Then setup a new company structuree as a trustee for both trusts. Allocate your profit/expense 50:50 to each trusts you created from the company. Directors must come from each trusts (one each).
This is the way I would contemplating unless someone else will have a better structures.
Ta, Paul
I thought that you just had a JV agreement between two entities (could be an individual, a trust, whatever). At the last Property Investing Masters weekend in Melbourne, there was a sample JV agreement provided – its on the website somewhere. From memory you could take it to your solicitor for review (dont just use it as is!) and insert the names of the parties involved, the money partner and the time partner.
Am I mistaken, this sounds far simpler than setting up new structures for every deal or JV![
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