suggest me a JV setup

a few pointers would be greatly appreciated

ignoring the legal side,
in a nutshell

2 parties buying a Resi house that needs a lot of work $50k
both want to hold on for long term, not interested in flipping


1 party has the serviceability and cash, but no expertise at all
1 party has half a deposit, and can manage the renovation and/or do a lot of work which could reduce the reno down by $10k-$20k and manage it
 
Heres my tip, and one Im sure shared by many.

JVs of this small scale are just headaches. JV a $5mil CIP by all means...but a $300k resi - YUCK.


pinkboy
 
Other than the legal side what it that you want to discuss?

Someone with cash or equity but no income could get into property and this could assist someone with income but no deposit.
 
Other than the legal side what it that you want to discuss?

Someone with cash or equity but no income could get into property and this could assist someone with income but no deposit.
Agree pinkboy jvs are hard

Terry. Good point. i was more asking about %s etc for examplle
if i did all the physical reno work. And didnt pay myself then its not fair on me
however if i didnt put in all the cash its not fair on the other person

I guess im just fishing for ideas
 
I reckon you'd be much better of paying higher interest rates temporarily, if you can't get traditional funding, and have it all to yourself.
Much simpler and more rewarding.
 
They have the income and the deposit? You have the street smarts?

Id have the property in their name and devise a cash payment for yourself as the manager of the reno.
 
ok, can I grab some feedback pls, do people think this is fair?

Buy and hold strategy, 50/50 Split for EVERYTHING,

Party A: doesnt want a loan for personal reasons and wants to pay cash upfront for everything. Provides 95% of the funding BUT to keep it in line with the 50/50 split, lends 45% to Party B at 8% interest

Provide
Party B: Manages the reno, does a bit of the work themselves, and does all the legal correspondance, agent correspondance and general ongoing stuff. Provides 5% deposit

to me I think its fair for both parties
 
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