Here’s what to look out for:

You might remember that in some of my earlier property tips I talked about how you can use joint ventures in your real estate deals.

While these are a great way of minimising your risks and sharing in the profits of real estate deals, today I wanted to let you know about some of the things you should look out for, to make sure your agreement is a success for all parties.

It is important to structure an agreement properly and have proper documentation in case things go wrong.

Rather than going straight to your lawyer and having them draw up a legal document, the first step is for all parties involved to sit down together and write a ‘Memorandum Of Understanding’ (MOU).

Basically each party writes out in their own words what they understand the particulars of the agreement to be. This is not a legally binding document but it will help ensure that you and the other joint venture parties are on the same wavelength.

Privacy is a very important consideration when drawing up an agreement. You may be happy to share the details of your arrangement with other people, but other parties involved may be very private people. Agree at the outset what details you are willing to share with others.

Once all parties agree upon the basic details of the deal, you can see your lawyer about drawing up a legal agreement.

From the very beginning of the arrangement it’s a good idea to hold regular meetings, whether you think you need to have one or not. You will always find important points to discuss.

Make sure that each party agrees upon and has a copy of the minutes from each meeting.

…and always seek professional advice before entering into any agreement.

To find out more about how to put together joint venture deals, click here

Warm Regards

Hans Jakobi – Your Wealth Coach®
Real Estate Secrets