10 Subjects to Include in Your Joint Venture Agreement

10 Subjects to Include in Your Joint Venture Agreement

Ten areas to consider including in your JV agreement include:

1. Purpose of Joint Venture

Are you buying, fixing, and selling a property together? Are you buying, fixing, and renting a property together? Get really specific on the purpose of this joint venture. That way, both parties are clear and comfortable.

2. Purchaser of the Property

Who is purchasing the property? Sounds a bit obvious — but can be overlooked in some joint ventures. The purchaser of the property is taking on more risk, so this arrangement should be spelled out in the agreement.

3. Term of the Agreement

If you are buying, fixing, and selling a property, you need to put in the agreement how you handle if the property does not sell. You also need to spell out if both partners will be part of the decision-making process of reducing the house price. It is really helpful to include all contingencies and worse case scenarios.

As I shared, we are in the midst of finalizing a joint venture agreement for a fix and flip project with another company. We have specified in the agreement that our partner will determine correct pricing of the finished property and will be in charge of the appropriate timing of reducing the price if need be. Our joint venture partner knows the local market much better than we do, so why would we want to micro-manage these decisions? The key to having a successful joint venture is to be crystal clear on the value each partner is bringing to the table and for the partners to not get involved in areas that are not appropriate for them to get involved with.

4. General Definition Section

Some would say this is just legalese; however, it is helpful to define the key phrases and terms you are using in this agreement. Remember, not everyone defines these common terms the same way.

5. Obligations of the Joint Venture2

In my opinion, this is one of the most important aspects of the agreement. You have to spell out in the clearest terms what each partner is responsible for. This includes who will be responsible for obtaining the commercial loan and how much that commercial loan is for (if applicable). This also includes aspects such as:

  1. Financial: what equity each partner is responsible for
  2. Operations: who is running the day-to-day operations of the rehab and responsible for bookkeeping and record keeping
  3. Marketing/sales: who is responsible for marketing and selling the finished product

The key here is to spell out every single detail. Include everything. I have never heard partners complain about too much communication in a partnership.

6. Allocations

You might have covered this in another section, but make sure you include the percentage of profits each partner will receive after all liabilities and holding costs, etc. are taken care of. I have seen many joint ventures be 50/50, but sometimes they are 40/60 or 30/70. It completely depends on the value the partners are bringing to the table.

7. Termination

Remember, joint ventures are not meant to be long-term agreements. They are designed to be short-term with a very specific, defined purpose. There is a clear beginning and ending to all joint ventures. These types of details should be spelled out as well in the agreement.

8. Rights and Duties of Parties Included in Joint Venture

This is mostly legalese but helpful to include to protect all parties involved.

9. Payment of Expenses

You need to specify in this section who will be handling funds, who is in charge of the banking relationship (if there is one), who will be paying the contractors and service providers, etc. This should have been covered above in the responsibility section, but if you have not specified how much equity each partner will be putting in, this is another place to add this. Additionally, you should specify in which partner’s business checking account the funds will reside. Money allocation and disbursement is one of the most important areas to cover in these joint venture agreements!

10. Insurance

This is an extremely important section. Many times, joint ventures are not newly formed business entities. Therefore, you should be clear on how this project will be protected with insurance and which type of insurances are important to purchase and maintain during the project. In this section, you need to specify who is purchasing and maintaining the various insurances (worker’s compensation, builder’s risk insurance, property insurance, etc.). Again, I am NOT an insurance agent by any means; however, I know the importance of properly protecting the building and all the contractors that will be working in the building.

In summary, I don’t know many real estate investors that have not at some point entered into a joint venture relationship. Therefore, you want to set yourself up for success from the beginning. Even if you are entering the joint venture with a family member or a good friend, you MUST put an agreement in place so the roles, responsibilities, percentage of profit, and money allocations are specified and clear from the very beginning.

For those who have entered joint ventures, please share your experiences. Are there any other areas that I am missing that are essential to include in an agreement?

How to Profit from Foreclosures in Canada Part 1

Creating massive & passive income is what full time Canadian real estate investors need to do. Foreclosures can be a source of many deals for us, where we are helping people who have gotten themselves into a situation and allow them to downsize with dignity and with money in their pocket.

Profit from Foreclosures

Profit from Foreclosures

Profit from ForeclosuresSo, what actually is a Foreclosure?

Profit from Foreclosures Some provinces in Canada have power of sale, while others have foreclosures. A foreclosure is a legal action where if the person who got a mortgage or borrowed money stops paying back the mortgage, the lender can take action. The court can grant the lender in certain provinces the ability to take back or sell the borrowers house in a foreclosure.

Profit from ForeclosuresWhat is a mortgage ?

A mortgage is a contract between a borrower and a lender (or mortgagor and mortgagee) for the mortgagor to pay back the loan to the mortgagee. When you get a mortgage to buy a house, you borrow money so you can pay back that amount in installments.
So what happens if you miss a mortgage payment, or you can’t make a payment?

Do you lose your house? Lenders don’t want to foreclose on you. Why? The foreclosure process takes a lot of time and money.
So the lender mat give you forbearance, which means that they probably won’t start to foreclose until three months after you are in default.Profit from Foreclosures
The lender will start the foreclosure process if they start demanding payment and you do not respond. Try working something out with the lender, ignoring them is a really bad decision. .

In the next article, we will discuss how to make money in foreclosures as a real estate investor.

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11 Celebrities who make Extra Income by Flipping Houses

11 Celebrities who make Extra Income by Flipping Houses

Even famous people look beyond their day jobs for extra income; and the stars that turn to flipping houses can really make a lot of money.
Hall went from Dexter to Broadway and he flipped a house in Los Angeles after owning it for only a month.
Now, he has sold his Los Feliz, a home for 675,000 more than he bought it for, and it was sold at 4.85 million. He tried to sell the house in 2014 but it didn’t work out.

Ellen has several house flips under her belt, and is probably the most well-known celebrity house flipper.

Her biggest flip was in July 2014 when she sold LA’ s Brody House for $55 million, $15 million more than what she bought it for. .  .


Jeremy Renner has successfully bought and sold several homes over the years, one in Nicholas Canyon and another in Hollywood.He owns a home at the foot of Runyon Canyon that he’s trying to sell for #4.795 million .


Jennifer Aniston listed her Beverly Hills home for $42 million in 2014, after finishing extensive renovations with the help of architect and designer Stephen Shadley. According to Variety, the home sold for $35 million after only two months on the market. The home was purchased for only $13.5 million by Aniston.

Courtney Cox and David Arquette divorced in 2013, and sold their beach house in Malibu for a nice sum of money. Although the pair asked for $19.5 million, the house was sold for $18 million, 10.075 million more than what they bought it for.

Diane Keaton has undertaken several renovations of historic California homes over the years, and even flipped two homes in 2010.

Her Beverly hills home was sold for an undisclosed amount to the creator of “Glee” and “American Horror Story”, Ryan Murphy.

Meryl Streep may have been hoping for a bigger profit when she listed this 1954 Research House for $6.75 million, but she and her husband still made $300,000 when it sold for $4.8 million just four months after it was listed.

When alex rodriguez sold his home for $30 million in 2013, he made a tidy profit of $15 million.  The Yankee purchased the mansion for $7.4 million in 2010 and spent another $7.6 million renovating the gorgeous space.


Vanilla ice has been studying house flipping for the past 15 years.  ” The former rapper told Time.com he has made millions flipping houses, and doesn’t even know how many houses he owns off the top of his head.
He is trying to flip his plantation style home in Brentwood which he acquired for $8.45 million. The “Spiderman” star has listed the 6-bedroom, 5-and-a-half bath mansion for $10.25 million.


Kourtney Kardashians guy, he is new to flipping houses and has hopped on the bandwagon. He recently purchased a five-bedroom home in Beverly Hills for #3.69 million and sources told US Weekly he intents to renovate and flip the property

The Eviction process by The Sheriff in Ontario

The Eviction process by sheriff in Ontario can be quite complicated when you have no idea. How the system works. Eviction procedure by sheriff in Ontario protects both landlords and tenants.

Being a Canadian Real Estate investor, you will, in certain circumstances, have no choice but go through the system.If an eviction order is been issued by the Landlord and Tenant Board against you, you must do something about it right away if you do not want to move. What you have to do depends on if there was a hearing or not.

Eviction process

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Real estate cash buyers in Canada

Real estate cash buyers in Canada

Canadian real estate cash buyers are vital in investing in Canadian real estate. The fastest way to build your cash buyers list is to meet them in person at the Professional real estate investors group (PREIG) Canada’s network meeting.

Discounted deals and Canadian real estate wholesalers are looking to meet in person with Canadian real estate cash buyers at real estate investors group.

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Mortgage Jargon – Part 1

Mortgage Jargon – Part 1

As a full time real estate investor, we will be getting a number of mortgages during our career.  It is best that we understand all of the mortgage jargon in order to fully understand our mortgage brokers, bankers, lenders, etc., not to mention the contracts we will be signing.

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Price IS Everything

Price IS Everything

As a full-time Canadian real estate investor, we must be able to attract deals to us which create massive and passive income on a regular basis. We of course have to be very cognizant of what we pay for each property, whether we are looking to purchase it ourselves or utilize it for the purpose of an assignment . We must be able to negotiate specific and necessary terms into each and every deal.

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Advertising Tips: Using Cash As Bait

Advertising Tips: Using Cash As Bait

As a full time Canadian real estate investor, we must realize that we can’t rely on other people like realtors to get us the majority of our deals. If we stick to the MLS in order to build our portfolio in a “conventional” manner, we may either run out of money or become too much of a risk, based on our debt load, to be financed.

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