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Author Topic: Joint venture assistance  (Read 2657 times)

Offline wshemwell

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Joint venture assistance
« on: January 08, 2015, 08:00:25 am »
hello, I am a rookie at real estate and just launched my  business on Monday this week. I have however had some success. I found a small church that has four (4) vacant properties and they want to do a joint venture. The properties are all free of any loans and will require some rehabilitation, however the ARV and rental income potential make this a deal with significant upside.

My problem is not sure how to structure this deal for maximum benefit for both parties. Because I see the potential for many other partnerships with other owners in the area. I am looking to use hard money to rehab then refinance in 90 to 180 days using either private investors or conventional loans.

By the way I will manage and share in the equity of each property. Can anyone assist me? Wayne
« Last Edit: January 08, 2015, 08:44:29 am by $Cash$ »

Offline Bill H

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Re: Joint venture assistance
« Reply #1 on: January 08, 2015, 10:16:31 pm »
A suggestion before you get too deep into this.

Church, religous institutions, property is normally tax exempt. 

THis means that if you own a part interest then someone  has to figure out some way to tax your half and this may not be desireable or possible.

Offline Gold River

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Re: Joint venture assistance
« Reply #2 on: January 11, 2015, 01:15:43 am »

    Bill is right if the church retains title, however I recommend that you and the church create a partnership through an LLC.
By creating an LLC the church can convey title and retain a 50% ownership interest and receive half of the yearly write-offs and get 50% of positive cash flow.

The property would be owned by a separate entity and independent of the church non profit organization status.

Make sure the church understands the structure and they would like to partner rather than sell and that they understand the operation and timeline to create a viable rental from their vacant home.

Make sure full disclosure is made and discussed so all church officials understand, reduce your plan to paper and make sure the church board votes in favor of and signs and acknowledges the plan so there are no future repercussions.

This is a great opportunity however many non profit organizations tend to have some board member or executive who misunderstands the original plan because it was never reduced to writing and never acknowledged, so to avoid future problems make sure all understand what your doing.


Offline BrookeGreen

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    • Aramendia Plumbing, Heating & Air
Re: Joint venture assistance
« Reply #3 on: January 14, 2015, 02:29:44 am »
Agreed, crunch religious information and keep every thing about property in mind


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