Protecting yourself in a JV partnership

Discussion in 'Find a JV Partner' started by KGeeson, Feb 12, 2016.

  1. KGeeson

    KGeeson Property Forum Staff Forum Partner

    What tips does anyone have (perhaps from your own experiences and learned lessons) for ensuring your interests (and cash investment) are protected as much as possible when entering into a JV?
     
  2. nmb

    nmb Well-Known Member

    Whether you are dealing with business acquaintances or friends there needs to be a legally binding agreement and all roles need to be clarified from day one. Many joint ventures start in a very balanced and encouraging fashion only to hit trouble with confusion about day-to-day management and the roles of the various parties.

    A clear and concise document covering every detail of the joint-venture is a must have from day one.
     
  3. Nicholas Wallwork

    Nicholas Wallwork Editor-in-Chief Staff Member Premium Member

    Yes absolutely right... make sure the nature of the agreement is written down and a full "partnership agreement" is drawn up detailing the terms and roles of each partner. This is a must to avoid bad feeling later down the line if one party isn't pulling their weight for example...

    Our JV agreements are much simpler as we just require finance JV partners so ours are more like loan documents with the funds fully secured on the assets we're buying so it's less about roles as our partners are mostly "silent" partners.

    Whatever the nature of the agreement there needs to be some sort of contract though.
     
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