Private Money Partnering

Private Money Partnering Table of Contents
Find Out All You Need To Know About Private Money
Partnering And Joint Venture Real Estate Investing.

Finding Private Money Partners
How To Find Private Money Partners for Real Estate Venture Capital Using The Web And Other Resources

Testimonials About Private Money Partnering
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Private Money Real Estate Venture Capital Glossary
Coming Soon. Terminology for Private Money Partnering And Real Estate Joint Ventures.

Private Money Joint Venture Real Estate Blog
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Introduction To How We Can Help You Find The Private Money That You Need.

Joint Venture Variables To Negotiate

Chapter P

Venture Variables - What You Negotiate

Forms:
Joint Venture Variable Checklist:

Who Is Going To Make The Monthly Mortgage Payment And Accept The Mortgage Liability?

I used to write the checks for all of the mortgages. Most of the time I don't anymore, unless my company owns the property and a partner holds mortgage against the property. Whoever owns the property should pay the mortgages as rent comes in. Though it's not much, it does cost some time and money to write the checks. The major consideration is the mortgage liability. What if the property has a negative cash flow because of a vacancy? Does that mean that the operating partner is going to come up with the funds? Or should it be the owner on title? Or should it come out of something else? You need to think that through.

How Is The Money Going To Be Distributed After A Resale?

What if you resold it on a wrap? Who is going to manage the wrap? When is the money partner going to get how much?

If The Property Isn't Resold Within A Designated Amount Of Time, Is Somebody Else Going To Become Involved, Like A Real Estate Agent?

Does the partner have the right to say you didn't perform? And whose share is the cost going to come out of? This falls into the area of performance. Did you do what you said you were going to do? And if you didn't, why? Have you communicated to your partner what the problems are?

How Much Maintenance Reserve?

I keep a certain maintenance reserve before I do any distributions because something might happen, just like that. That property has to be an economic unit that is viable from a management standpoint. I usually set aside a reserve of $100. It's a token amount because if you have a hot water heater that goes out, that's at least $350, but it's the concept that the properties have to be maintained.

What Is The Expected Level Of Involvement For All Parties? How Much Do You Really Want Them To Do?

If you are the managing partner and you really don't want them to do anything, that's perfectly OK, if that's what you agree on. What happens if that level of partner involvement changes? What can you do? Here's a look at this type of situation, and how the partners work it out.

LAURA: Diane, my husband just got a job transfer and we're going to be moving to South Africa. I can't continue to manage the apartment complex from South Africa and I want out. I know this puts you in a bind, but how can we work this out? I can't do anything from South Africa. That's just too far for me.

Joint Venture Variables to Negotiate - Chapter P