Joint Ventures and Land Titles

Who’s on Title?

Two of our clients at RMLO Law LLP formed a typical Joint Venture (JV) to buy a property in Alberta with a brand new mortgage. One client was the “Investor” (the money-man). His JV partner was the “Finder”, (typically a person with real estate expertise and no money). In this case, the Finder had already purchased properties using every cent of his own money. He was out of borrowing capacity.

Part of their JV discussions was, “How should we take title?” Both clients understood that they had a few basic choices. Continue reading

Avoiding Joint Venture Regrets

“Shoulda, Coulda, Woulda.”

Two of our clients at RMLO Law LLP decided to do a Joint Venture on an apartment building in Edmonton. The ‘real estate expert’ client had a lot of experience and already owned a number of apartment buildings in Alberta—all running very successfully. The ‘money partner’ client was relatively new to the real estate business. Projections were made, some data exchanged, and the Joint Venture went ahead.

Unfortunately, this particular apartment building did not work out nearly as well as the other apartment buildings already owned by our ‘real estate expert.’ Once things were not going according to expectations, both clients were unhappy with each other. Continue reading

Personal Responsibility in Cooperative Investing

Podcast Episode 86:
Joint Venture Blues.”

Partnering up can be a good way to buy more property, but you still have to be careful. As with everything in real estate, due diligence is essential in joint ventures. In this Tale, you’ll hear about the all-too-common mistake of not getting an inspection. You’ll also hear about how not vetting the finder/manager properly cost an investor big time.

Download the audio file HERE.
(control click or right click + save as)

 

Buying and/or selling Alberta real estate? Contact Barry now!

“3D Realty Handshake” image courtesy of Scott Maxwell. Used under Creative Commons Attribution-Sharealike 2.0.

When to Walk Away from a Real Estate Deal

mortgage default foreclosure

Podcast Episode 82:
Diligence Time Bombs And Letters Of Intent.”

When trying out a new real estate investment strategy, it’s important to know when to walk away. In this Tale, an attendee of one of my creative investing workshops was ready to try an Agreement for Sale, and contacted me for help with a Letter of Intent. The deal turned into a Joint Venture, but there were too many red flags. Our investor walked away, and we can all benefit from the lessons learned!

Download the audio file HERE and the text/handout HERE.
(control click or right click + save as)

Continue reading

What to Do About Foreclosure

mortgage default foreclosure

Podcast Episode 75:
Help, I Can’t Make My Mortgage Payments!”

To mark the 75th episode of Tales from the Trenches, we have a Special Extended Edition all about foreclosures. This Tale is so packed full of helpful information that it had to be nearly half an hour long! The recent economic downturn in Alberta triggered by a collapse in oil prices means that many people are faced with a dilemma: what do you do if you can’t make your mortgage payments? It’s best to be proactive and not wait for the bank to come calling, and this Tale will help you figure out some options. We’ve also got some creative solutions for real estate investors that can help them keep their businesses above water in tough times.

Download the audio file HERE and the text/handout HERE.
(control click or right click + save as)

Continue reading

Joint Ventures, Corporations, and Disputes

legal dispute

Getting Married Is Easy; It’s The Divorce That’s Tough!

Joint Ventures are a very popular topic with real estate investors, maybe the most popular topic. We all talk about them. Sooner or later most of us get involved in Joint Ventures.

In a nutshell, the basic Joint Venture is two people getting together to acquire a piece of real estate. The details of your Joint Venture are contained in a contract known as a Joint Venture Agreement or JVA. A good Joint Venture Agreement is very detailed and tailored to the circumstances and requirements of the participants in the JVA.

One major concern for all Joint Venture participants is, “how do we settle disputes”?

Continue reading

Joint Venture Presentations

HandShake

How Not to Overload
a Potential Joint Venture Partner

We all do it, overwhelm our potential new joint venture (JV) investor with paper and PowerPoints.

We know so much about our strategy and properties that we just can’t resist making sure our newfound potential investor really gets the picture. Statistics, charts and reams of detail are thrown at someone who doesn’t have a clue about investment real estate and joint ventures.

Five minutes after you start your one-hour presentation you can see their eyes glaze over. Uh oh, this isn’t going well… How about a different approach? Continue reading

A New Approach to Joint Ventures

HandShake

Over the years I have worked on and drafted quite a number of Joint Venture Agreements (JVA).  Some people are comfortable drafting their own JVAs.  Some folks are more comfortable after taking my Deal-Ready Documents course.  However, for most folks, they want to get our help in finalising that JVA.  I would say the percentage is about one third DIY and two thirds where people are just more comfortable with a lawyer helping them out.

When someone wants some help with a JVA sometimes they say, “I’m okay with the agreement generally, but I need help with a few clauses”.  Or sometimes they say, “I’m attaching my template JVA, can you please review”?  My real estate partner Richard Bell and I used to help out with these requests, but we have decided that neither of these scenarios are completely satisfactory.  Why? Continue reading

Fourplex Puzzle (Part Two)

Podcast Episode 24:  “Fourplex Puzzle (Part Two).”

When buying a fourplex or any property with more than one dwelling, you must do at least two things. Number one, check to see that the zoning allows the number of suites. And, number two confirm that the proper permits have been issued and final inspections done. A real property report (RPR) (survey) with the proper zoning stamp is not enough. Checking permits, whose job is this?

Download the audio file (Mac control + click + “save as” / PC right click + “save as”) HERE.

The full-text version of this Tale from the Trenches can be found HERE.

Contact Barry McGuire now. Alberta real estate needs an Alberta lawyer.

Fourplex Puzzle (Part Two Handout)

Text Notes for Podcast Episode 24: “Fourplex Puzzle (Part Two).”

When buying a fourplex or any property with more than one dwelling, you must do at least two things. Number one, check to see that the zoning allows the number of suites. And, number two confirm that the proper permits have been issued and final inspections done. A real property report (RPR) (survey) with the proper zoning stamp is not enough. Checking permits, whose job is this?

Download the handout (Mac control + click + “save as” / PC right click + “save as”) HERE. Continue reading