JV arrangement for notes

[Mickey Bradshaw]

Hi,

I'm new to note investing and I am considering a JV arrangement to get my feet wet and learn more about the process. Is it typical in a JV arrangement for the newbie to provide ALL the money and the experienced person to provide the know how and actually do the work (most of it anyway) for a 50/50 split? I ask because I'm a little uncomfortable that the "expert" has no real skin in the game and if it went sideways they aren't out anything but time. I'd appreciate any feedback regarding folks experience with JV agreements regarding notes. Thanks in advance!!

[Jay Hinrichs]

Originally posted by @Ken Hobbick:

@Jay Hinrichs I admit I increased my vocabulary looking up definition of hoary, meaning old, white or ancient... but point well put and found way to Howey test (1946) for securities is broad and can be applied to JV's, LLC and general partnerships

As such, those being a sponsor of agreements should have proper legal counsel to advise them appropriately with caution,  as mentioned its all great until it doesn't go right and money is lost. 

Sorry I misspelled that and sent you on a goose chase.. I for one have been called to the Mat on the Howey test.. and got a Cease and desist and a 5k fine form the state of Oregon.. they were nice to me.. but it cost me an additional 20k in legal fee's LOL.. and I was just like all these folks thinking they can JV notes.. until I was talking to someone on a note JV and that someone told an attorney and the attorney filed a complaint against me.. So there is no question in my mind all these folks that think Hey I will just help these people and let them invest with me while I do all the work.. etc.. run a huge risk.. and for what to buy some low value asset to make a few grand a year.. not sure like I said why anyone would do that.. but I suspect its taught at some of the note schools.. and we know gurus are not on the front lines of what is legal and not.

other wise there would be no reason for the bigger established players to create 500 series funds.. no need at all they would just JV all the notes.. easy peasy...

in CA you can fractionalize notes legally without securities but you need to be a CA broker or NMLS or have consumer finance license all these states have their thing..

that was part of my problem in Oregon.. I did not realize you could not fractionalize in Oregon and did a few because that is what did in CA for years.. NOPE .. LOL...  Anyway.. I now subscribe to the ONE note one investor rule or FUND ... but that's me personally and who cares what I think anyway.. right ?