Many discussions on this topic, I know of some disasters, because it's not equal risk. One is the money partner, the other provides the skill/knowledge... I don't buy this just my opinion I would not enter in this arrangement unless JV partnership is 50/50 across the board, same injection of cash and similar/same knowledge base. MTR
Or perhaps a investor who is great at making CG (like you MTR) and another one who has the yield but useless CG.lol
I don't know if I agree mtr. I think under a money partner v skills outcome at least when you end up doing all the work your not upset about it. I've done a 50:50 JV and a 33:33:33 JV before. In both outcomes I put in 95% of the work.
That's not good. I would expect that one person does not do all the work, though that may be hard one, there should be some understanding on how it will operation and allocated tasks I guess??
I would do it again. In the 30:30:30 one I received a private loan from the two 30 partners or I couldn't have done it. Therefore it was worth my while. In the 50:50 one it was self funded. But the partner brought some cash flow assistance from time to time. So again can't complain. I am currently doing a 38:33:29 JV on a triplex me the 38 and based on end product size and value and cost. All three end up with a townhouse to sell or keep. I will be living in mine. This was done with family members. In planning at the moment.
Sounds good and hope it all works out. What's that saying though....."don't mix family and business" All to their own, been involved with family and money/business and turned out to be a disaster, wont do this one again.
Have done a JV with my 2 brothers. I'm the researcher, they are both carpenters. Made a killing with no problems and everything split in thirds. None of us could have done it alone
To clarify as well. We all got paid for the hours we put in. They were paid their normal hourly Rate as They would be working on any other job. I got a labourers rate and was reimbursed for all the hours of admin stuff associated with a subdivision. That way no one felt like they were working for free or less thus no problems. All of this was discussed prior so no real issues along the way.
