Robert KingParticipant@robertkingJoin Date: 2016Post Count: 13
I have an associate who is a builder and is interested in building wealth through property development.(start small with Duplex/Subdivisions etc.)
As an Investor with Capital and Equity, I am also interested and think this could be a good partnership(if managed correctly).
My questions to the group are:
Has anyone worked in JV before?
How to structure myself/each other in the JV?(Trust/Company etc)
If he is building and I am funding, how should the split of property Ownership/Company look like?(50%/50% etc…really interested in how others have calculated the split)
What esle to look out for?
Other tips and advice.
Thanks in advance for all your comments.
RobertTerrywParticipant@terrywJoin Date: 2001Post Count: 16,190
Structuring will depend on the circumstances such as strength of parties, agreed split, financing ability,trust.
One I set up recently involved company owning property with 50% each owned by trustees of a discretionary trust. Builder family was a beneficiary of second trust. Company then entered building contract with builders company.
50% profits able to get to builder.
My client retaining full control.