How does a Joint Venture Money Partnership Work? – John Burley

October 20, 2006 — 1 Comment

The Joint Venture deal is quite simple.

The money partner puts up all the money, in the form of a one-time non returnable capital contribution.

They qualify for the loan.

I do all of the work.

  • I find the property,
  • make the written offers,
  • negotiate the transaction,
  • re-market the property,
  • handle collections,
  • repairs and
  • property management.
  • In essence … everything.

When the month is over, the expenses are paid and we split the profits or losses 50-50.

  • If the investor has out of pocket costs to cover the mortgage, he is reimbursed from future profits.
  • If Southwestern Funding Group, Inc. (my company) is out of pocket for expenses, we are reimbursed from future profits.
  • We are the caretakers of the system.
  • It’s clean and simple …
  • and it works time-after-time.

That’s the story of leverage and investors.

Please remember to corne back and review this section often. The principle of Leverage is critical to your success. You must master it.

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