Hi BP Community,I'm entering into a JV to purchase and rehab a property where I will be the operating partner and the 2nd party will be the capital partner.We're working on JV agreement and we need a clause in there that would cover his capital investment in the rare event that the property does not sell for more than what he has invested. 

Try to get them to see it from your side; you are a reasonable person and would like people to have the quiet enjoyment of their home and thus have tried hard to avoid having many restrictive "house rules", but your intention in renting to them was for them to use this single family residence in a typical way.An imperfect analogy:When Hertz or Avis rents you a car, sure you have "use of it for X days" - but they are not expecting you to enter a race with it at Watkins Glen, or use it to transport 150 bags of potting soil, stacked into every space in the trunk, back seat, passenger's seat, and roof. 

@Mathew Madruga So when entering numbers into the refinance portion of the investment calculator, do you NOT enter the total price the property is now worth after rehab is complete?

While I have no problem with either scenario I am entering into a professional relationship blind.

Did you enter Indy since posting to this forum?

Entered way too late (last Nov), didn’t make any profit. 401(k) & retirement $250kWe also have two apartments in Shanghai under our names gifted by parents, but our parents collect the rents.

@Cass Lowrie,As you already know, your wife's or your retirement account would not be allowed to enter into any transaction with your business.

In the lease, it does say that we reserve the right to enter especially to complete/address repairs that affect safety, structure and building system.

Pretty clear cut case of breaking and entering.

You think it is too late to enter that market??