Joint Venture Agreements

A great way to share the wealth is to bring others in on a real estate investment deal with you. Assuming your getting to the point where your track record is great and you only have so much cash to put down you now need to look at bringing in a joint venture partner. This helps in two ways. You can use their credit to obtain a mortgage and or use their money for the down payment and any expenses along the way are split 50/50. I split the expenses 50/50 with my partners but when we sell I get 60% and they get 40% of the profits. This is because we are using my knowledge of real estate investing and I do all the work. The only work my joint venture partner needs to do is go through the mortgage process if I'm using their credit. If I use them only for a credit partner I pay them $500 up front when the deal closes and $2,500 to $3,000 when I sell the property. For a good Joint Venture Agreement example check out Bill Bronchick's book Flipping Properties page 199.