First JV or Private Lending Partnership - Worst Case Scenarios?

[Sasha Josephs]

Hey everyone,

I’m seriously considering entering my first Joint Venture or private lending partnership on a single-family flip, and I’d love to hear from those who’ve done this before.

I’m trying to understand how investors and operators protect themselves in worst-case scenarios:

• What happens if you or your partner gets sued personally in a JV scenario?

• What if there’s an accident on the property (e.g., someone slips and falls) and sues you in a private lending scenario?

I’d love to know how you structure your entities, insurance, or agreements to handle these types of risks — and any lessons learned from your own experiences.