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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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

In one relationship that some partners and I needed to dissolve, we agreed to hire an appraiser to determine the current value of the property. We worked out how much one partner owed to the
other, based on the equity in the property held. It was an amicable parting of the ways, because our partnership agreement included a mechanism for doing that. It always helps to do things right in the first place.

How Will The Parties Communicate?

This could possibly be the most important factor you'll be determining. How will you communicate? Will it be in writing, through monthly or quarterly meetings, or through weekly phone updates? You and your partner have to determine what mechanism is going to make you feel comfortable.

Partnerships can be going along great, but what happens when things get rough? You need to go into it with the idea that if there's a problem, what are WE going to do? That is a lot different than what are YOU going to do to get ME out of this mess. It's got to
be a "we" situation from my perspective, or you're going to wind up in court. Then who wins? The attorneys get some money. Always try to communicate and get things worked out without
resorting to legal maneuvers, in the worst case .

Since it is a contract with agreements, if the parties agreed to change or adapt it, that's consistent with the basic concept of consensus of the parties. The more parties involved, the harder it is to change things. This is why I decided if I want to work on bigger deals, I need to find a partner who is big enough for the deal. It makes life simpler, rather than getting two unrelated parties
involved. The more people are involved, the harder it is to manage the project, because you also have to manage the partnership. It's hard enough just dealing with a husband-wife combination, making the assumption that they have common goals. They have to have common goals in line with your own. You have to count on communication to get you through the rough spots.

What Is The Degree Of Liability For Each Party?

You will find I have a long form agreement with more extensive versions of this issue of liability. Include whatever clauses make you and your partner comfortable at the outset. Recognize that your task is to develop a working relationship over time. Once you've done that, it doesn't matter so much what's on paper. If we get into trouble, we'll work it out and we know that. Having told you that, you really do need to have all these things in writing.

Joint Venture Variable Checklist (PDF format)

Joint Ventures: When Things Go Wrong - Chapter Q