What does a Joint Venture contract look like?

Question

I'd like to joint venture with other wholesalers in my area but I'm not familiar with the kind of contract that's used in this situation.

The two scenarios I'm talking about are:

1. I find a cash buyer for another wholesaler

2. Another wholesaler finds a cash buyer for me

All we would do is split the assignment fee 50-50.

For those of you who have done similar joint ventures...What did you use for the written contract?

Thanks guys!

Jerry W. · Answer

I am probably the worst to ask.  In my business there should be contracts, memorandums, etc.  I unfortunately usually use a simple memo and a handshake.  No matter the contract, it is only as good as the person you make it with.  That being said you should have a contract or agreement sets out how profits are shared, calculated, and how and when folks will be paid, and what actions they must do to get their share of the profits.  Might not hurt to have a how to share a loss clause either.

Account Closed · Answer

if you go to resources /files you can download jv contracts

Jerry W. · Answer

It depends on the deal.  if you have the written contract on purchasing the house the check goes in your name and you give a check to the buyer or you give written directions to the closing agent to cut 2 checks.  if they have the deal you have to get the money from them or their closing agent.

Jimmy Klein · Answer

First off, this is not called a joint venture, its simply a co-broker agreement. Joint Venturing is when two or more parties are investing together and there is a structure to split the profits in a certain way.

Robert Solis · Answer

Thanks @Jerry W.

Going with the simple memo and handshake idea... who cuts the check? Is that memo given to the title company and the title company cuts a check for each of you? or after original wholesaler receives the assignment fee, he gives you a check for your half?

What does a Joint Venture contract look like?

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