hi,
recently came across a very good deal but due to short term situation i cannot buy it on my own.
due to me having equity to become a security guarantor, have teamed up with a good friend of mine to do a JV.
the banks that broker have spoken to has said they are willing to accept the arrangement we have proposed BUT they want the contract to state the% ownership. (contract still subject to finance)
since im providing the 20% security deposit, and my JV partner borrowing the 80% they want that added to contract.
here is my question:
when its profit time, does the profit have to be an 20%-80% split or can it be 50% each based on a separate contract that we agreed to stating the equal split despite different % of ownership.
**please note that we have acknowledge and calculated the different scenarios that can happen so just need the question above answered*
thanks very much.
recently came across a very good deal but due to short term situation i cannot buy it on my own.
due to me having equity to become a security guarantor, have teamed up with a good friend of mine to do a JV.
the banks that broker have spoken to has said they are willing to accept the arrangement we have proposed BUT they want the contract to state the% ownership. (contract still subject to finance)
since im providing the 20% security deposit, and my JV partner borrowing the 80% they want that added to contract.
here is my question:
when its profit time, does the profit have to be an 20%-80% split or can it be 50% each based on a separate contract that we agreed to stating the equal split despite different % of ownership.
**please note that we have acknowledge and calculated the different scenarios that can happen so just need the question above answered*
thanks very much.