Joint Venture Investing with Uncle

[Tyler Ligan]

Recently my uncle approached me and proposed going in on a joint venture multi-family investment. As a person already wary of putting money between family, there is a multitude of reasons why it piqued my interest. Looking for some advice on best methods of practice for this, initial contracts to have outlined, minimum participation clauses, exit strategies, whether we should make an LLC or not, etc. Open to any and all help/information. Thanks!

[Stuart Udis]

That question is far too broad to provide any meaningful insight. With any real estate partnership, the analysis starts with what each party is actually bringing to the table.... Experience, contribution of real estate, labor, capital & balance sheet strength for loan guarantees are common factors to consider as well as objectives.

Those inputs form the foundation of the partnership, and the way the partnership is structured flows directly from them. Without knowing what you and uncle are providing or your objectives, it's really difficult to provide insight.