Flipper/Rehabber · Indianapolis, IN · Member since 2019 · 20 posts · 1 vote
Does anyone know where I can get a template for a joint venture agreement? Also, looking for language to put in a mortgage for a private money deal that covers the acquisition price and provides an additional $20,000 as a draw for improvements. I want to write mortgage amount based on the acquisition price plus the rehab costs, but just trying to determine the best way to articulate in the document. Any help/thoughts would be greatly appreciated…
Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes
4y
@Aaron Brown not to sound snarky, but I normally just call up my real estate attorney and have him draft this. I have built good relationships with several attorneys here in the Chicago area where I invest, and a JV agreement normally costs well under $1,000 the first time. After that, you can have the attorney use the same general structure for the next one and keep rolling with less and less cost.
Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes
4y
@Aaron Brown not to sound snarky, but I normally just call up my real estate attorney and have him draft this. I have built good relationships with several attorneys here in the Chicago area where I invest, and a JV agreement normally costs well under $1,000 the first time. After that, you can have the attorney use the same general structure for the next one and keep rolling with less and less cost.
@Aaron Brown not to sound snarky, but I normally just call up my real estate attorney and have him draft this. I have built good relationships with several attorneys here in the Chicago area where I invest, and a JV agreement normally costs well under $1,000 the first time. After that, you can have the attorney use the same general structure for the next one and keep rolling with less and less cost.
Aaron, John is right. You should 100% get an attorney to draft both for you. A good attorney will protect you better than any template found online. Good luck!
Flipper/Rehabber · Indianapolis, IN · Member since 2019 · 20 posts · 1 vote
4y
@john Warren @Scott Wolf Thank you for taking the time to offer your insights. This is a partnership agreement with a very close friend and his father that’s fully funding the deal - while I want to be thorough in providing the proper protection, I was also hoping to cut some corners and trim cost on legal fees given the nature of the relationship. But I think you’re right that it’s a relatively small initial investment to have this original document drafted by an attorney, and can then slightly alter and recycle it multiple times over. Again, I greatly appreciate your input!
Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes
4y
@Aaron Brown I totally get what you are saying. At the same time, if the deal can't support $500-1000 in legal counsel to set things up correctly is the deal even worth doing? At the same time, you have to watch for people in any industry that look to take advantage of you. You don't need this to be overly complex. As long as you set things up correctly from the front end, then you should be in good shape if anything ever changes. You just want to set expectations early so you don't ruin a friendship just for money.