Joint Venture Agreements

[Troy Evans]

I recently heard Tony Robinson speak about joint venture agreements he does with his partners on short term rentals where the partner puts up the capital and Tony manages the property and they split the revenues (possibly profits) 50/50. Does anyone have a sample JV agreement or can they point me in the direction of one? Or is there any advice around this type of partnership.

[Mitchell Zoll]

You may find JV agreements online, but it is best to walk through this agreement with a lawyer. It is important to think through how the venture will make decisions, what expenses will be shared, and even how the joint venture will terminate. The agreement you get online might be perfectly suited for their deal - but that will not be your deal.  In these 50/50 transactions - the money side thinks they are ultimately in charge, and the sweat equity thinks they are really the one in charge. Unfortunately neither is right and they both find out after the mistrust starts.