NEED HELP!- JV Finance

Hi Everyone,

I'm rather new to the forum and found it to have great people and information.
I am currently looking at forming a JV deal with a friend. However, not sure on how I can finance this deal or structure it so I can achieve what i want. Has anyone done this before or anyone that can point me to the right direction? Please Help. Situation is as such:

I am planning to do a 50/50 JV purchase with a good friend.
As the banks have told me that i have insufficient serviceability now, they will not approve my loan.
I am trying not to resort to low doc or no doc loans at this stage as we have alternative methods of finance.

My friend has got only his primary resident loan and plenty of income.
He will have no serviceability problem.

I would like my JV partner to take up the debt and act as a debt partner. However, as I would be contributing the deposit, expense and repayments 50/50, i would like to have some legal control over the asset.

I have made some finance inquiries and was told that if it's under a joint title, then the debt would have to be under both names - no other option. Even under a trust, if i'm listed as a principle beneficiary, i would have to be a guarantor. I am trying not to appear in the bank's book so that it does not affect my future borrowing capacity. Also, this is the primary reason why i'm seeking a J-V, to find a debt partner.

Anyone have any ideas on how to get around this challenge? Or would anyone know of any legal arrangement that i can enter to make this work? Perhaps can point me to the right direction?

All your 'wise' :cool: advises and ideas :confused: is really much appreciated.

I think there are a few ways to go about it.

firstly,in one case my bank manager, whom i have a long standing relationship with, agreed to assess one of my deals based solely on my business partners have a chat to a few banks and maybe someone could be willing to do it that way.

Secondly, you could have ur friend own the property, you have a company that charges him a project management fee of 50% of the income and you can lodge a caveat or register a second mortgage over the property. A JV agreement should also be in place.

I'm just giving you a simplistic view of how I have done it on a several occasions but you need to have a good property solicitor do things up properly for you.