I confess I'm a kid in the 1980s and the Pet Shop Boys – despite the fact that we believe now – musical gods. One of their songs had said "you have brains, I've got the looks, let's make lots of money".
BY JANE SLACK SMITH
I cringe when I attend where the Organizer said: "in this room are those of you with no time, but a good income and savings, and others who have time on their hands and a lot of creative flair – why not get together and start a joint venture?"
To be honest, I work with people who have formed joint ventures with friends, siblings, parents, etc. and all I can say is, if you even consider going into a joint venture arrangement, go with eyes wide open and very thorough letter of agreement in place. Even those who really know each other well, you can begin feeling the relationship was somewhat thin after a while.
Let's face it, at the end of the day, most often one man slaving for half an hour a week job 80, a little miffed that the other is out wandering around picking colors of paint, while the man on the front line "renovation of struggling with montažnikam, Balancing control project and Selecting color schemes, all the while imagining the other guy is sitting in your Office comfy air-conditioned sipping lattes.
Even if you make money from a deal it still can be finished in tears or recriminations. So who really put in much effort, the guy with the "brains" in the Office or person with ' looks ' (read creative flair) there?
Complicate things even further, if you do this with a large group of people – the family or friends – then be ready. The overall theme is to buy a block of units and their layers. However, the timing usually blow out, understanding all the subtle moments of complex to say the least and determining whether the Panel on the upper floor is of greater value than the one with garden can cause more than a few differences.
And if that's not enough, then corrupted, and someone needs to sell quickly. What do you do? (A) Agreement (you are signed in the beginning-you have one didn't you?), you must state clearly what would happen if someone needs to sell. It with other first proposed or walking on the open market? This person get any recognition (compensation) for where the project is now down or they only recoup their initial investment?
Joint ventures can be complex, and I'm nothing if not knowing risk manager. Therefore, regardless of whether you have a "view" or "brains" (or both), my best advice to go with open eyes, and despite how far are you close with friends trying to separate the friendship and business – or it could end in tears.
Jane slack-Smith, Director of property finance investments with a choice of investors. It is a mortgage broker market commentator and educator property which passes the courses investment property on a variety of topics. Visit www.yourpropertysuccess.com.au for dates and topics.
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