5 unit site/joint venture

[beech]

hi guys im looking at a 5 unit site in outer Melbourne and a very good friend would like to be involved.(4 units for me,1 for him).

I have a trust set up and just wondering how best to set this 80/20 JV up.

I am bricklayer/builder so the job will be entirely managed by me.

Dale has mentioned previously that setting up a trust for 1ip wouldnt be worthwhile (for my friend for example in this case)but he is seeing what im doing in regards to property investment and i have strong feeling he may be interested in being involved in future developments.
So setting up a trust for him wouldnt be out of the question,


Any help appreciated,thanks

 

[Aceyducey]

Beech,

Investigate unit trusts.

In this case the trust would be for both you & him, it wouldn't be his trust per say.

Cheers,

Aceyducey

 

[beech]

hi Acey,

I suppose the unit trust could still be linked to my present HDT?

Would he also have set up a trust at least?

thanks

 

[Aceyducey]

Your Trust could own your share of the units in the new trust.

He could buy them in his own name, via a trust or in some other way...even split them between himself & his wife.

But please speak to a good accountant about this one - my approach may be way off

Nickm from Strategic Wealth Management (www.strategicwealth.com.au) is a good one who is a Trust expert.

Cheers,

Aceyducey

 

[beech]

thanks Acey

 

[juzz]

I have a trust set up and just wondering how best to set this 80/20 JV up.

I have a few Joint Venture sample agreements.
But you'll have to come see me to look at them.
Min 10 pages to maximum of about 100 Pages each.
You also need a good solicitor who does these to tie in both parties responsibilities.
Also, never copy someone elses as nearly every deal is different.
But they can give you idea's to think about.

Here is some idea's you may need to think about:
Contributions? Type? Who? How? Why? When?
How are contributions adjusted?
Repayments on completion?
Entry / Exit Strategy.
Distribution of funds.
All project details.
Other agreements & Documents to tie into JV.
Consequenses
Default Period.

This is just a start.


Justin