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Joint venture partners

Discussion in 'General Property Chat' started by the world is your oyster, 10th Sep, 2016.

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  1. the world is your oyster

    the world is your oyster Well-Known Member

    Joined:
    28th Jun, 2015
    Posts:
    186
    Location:
    victoria
    hi all
    I was wondering if any members have used a jv partner ?
    How it went ?
    What was involved in each parties ?
    How you found your jv partner ?
    I have been considering doing a jv deal to leverage in to a more profitable deal Iam interested to hear other investors experience good or bad on the topic
    cheers
    daniel
     
  2. hpresident

    hpresident Well-Known Member

    Joined:
    30th Jun, 2015
    Posts:
    75
    Location:
    Brisbane
    Hey,
    Done a few jv deals with friends and investors before. It all went according to plan. I project managed the hole thing.
    It went well.
    My first jv was with a few mates I know, then the builder we use wanted in on the next deal, then the real estate agent that we partner with, then friend's friends ect. Mostly word of mouth.
    We always talk about and have it legally written down that in a variety of situations what we would do. EG if the market crash ect.
    There are lawyers out there that specialise in these jv agreements.
     
    Skilled_Migrant likes this.
  3. Skilled_Migrant

    Skilled_Migrant Well-Known Member

    Joined:
    21st Jun, 2015
    Posts:
    688
    Location:
    Melbourne
    The builder appears to be contributing substantially via sweat equity. In addition, it removes the headache of runaround from the banks for a development loan.

    If you don't mind sharing, It would be educative to know how was the profit shared with the builder ?
     
  4. hpresident

    hpresident Well-Known Member

    Joined:
    30th Jun, 2015
    Posts:
    75
    Location:
    Brisbane
    There are a few different cases, a few times it was the builder (the person) that wanted in, so he basically joint as regular investor.
    Then there was one time the builder (the company) was involved. In this case we calculated the cost saving from interest and provided him extra % of share.
     
    Perthguy likes this.