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
Find Out What Investors Have To Say About The Information On The Private Money Partner Site.

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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Private Money Partner Meetup Forum
Private Money Investors & proposers Can meet and find mutually beneficial partners.

Private Money Partnering Home Page
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

Let's listen to this situation when Ralph and Mary are discussing a disturbing problem.

RALPH: Mary, we have a problem. I have to tell you. I've been investing in real estate now for about 15 years and I bought this house and I felt like we could make about $10,000 on it and split the profit. We were well underway on the work and your $25,000 was going to cover it and everything was going well. However, a situation has developed. Being out near the airport, you heard
about the airplane crash the other day? Well, this little Cessna that hit it, that crashed, hit our house. The guy was uninsured and our insurance company is giving me problems and the long and the short of it is, it's going to take another $28,000 to recondition this house and sell it. So, what I'd like for you to do, I think eventually we'll be able to recover the money from the insurance company, but right now in order to get this house up and saleable we need another $28,000. Can you do that?

MARY: I don't believe this. When you came to me, you told me that you had been doing this for 15 years and this was a safe way to make money. Now you're coming to me and saying some plane has hit this house and the insurance company won't pay for it? The insurance company you chose?

RALPH: My insurance agent has always been good.

MARY: I'm sorry, if he was good, he would be paying it. You're responsible for this.

RALPH: No I am not!

MARY: You are responsible for this, this is your choice. When I first gave you the $25,000 I had found out my husband was having an affair with another woman. And I really didn't much care what happened to the money. Now he has a terminal illness and he has stopped his affair and come back home. I need to get my money back as soon as possible. If this is anywhere near the airport, I'd have to buy a hearing aid after six months just to get near there to look at the property.So like I say. I gave you the original money when I was under emotional strain and I shouldn't have made a decision in that condition. But I did. I trusted you, you told me that it was a safe way to make the money. Now you're coming back and saying not only have you messed up with the insurance company, but you want more money? You've got to be kidding!

RALPH: Well, Mary, I am not kidding. And I can tell you it was no fault of mine that the airplane hit the house and that guy didn't have insurance. And I've got a little more bad news for you. I don't have the money. And I don't have any place else to get it.

MARY: I don't know what to say to you Ralph, except that I've got a phone in the car and I'm calling my attorney.

RALPH: Call your attorney, and I'll call mine.

MARY: That's fine. Good-bye

When the two partners agree to disagree, and they want to dissolve the relationship, the mechanism for handling that issue is the "dissenting remedy" clause. This basically permits one
partner to buy out another, with a predetermined mechanism for determining price and terms. This procedure is almost always better than going to court to fight out your positions, in which
case one partner will always be the loser. The "buyout clause" may be the most important part of your partnership agreement.

Joint Venture Variables to Negotiate - Chapter P