JV question/structure

[Shawn Mcenteer]

when structuring a joint venture what legal guideline do you follow to protect yourself? i.e. do both party's hire there own attorney to wright up contract and structure agreement?

If you are providing the cash for a deal what steps are recommended to ensure second party does not walk with cash? Is escrow involved?

[Eric M.]

Well if it is a JV you don;t really turn the cash over to your partner and let him walk away. It is a bigger risk if he walks from the project leaving it half done.

It is smart to have an attorney draw up an agreement indicating what each party's rights and responsibilities.

As the cash person, I think it is important in what name the property is held in, making sure the rehab is done properly and with permits and then having an out clause, if certain time and budget targets are not kept. You need a way to step in to take control and stop the bleeding.