Today on the show, we welcome returning guest, Jeff Lerman. Jeff was on Episode 335, where we covered the important topic of joint ventures, or JV’s. We talked about what a JV is, the difference between a JV and a syndication, and why you might use a JV versus a syndication structure. In this episode, we briefly recap some of the key points from Episode 335 and then dive a whole lot deeper into JV’s.
Watch the episode here:
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What makes Jeff the perfect guest for this episode is that he has established a nationwide reputation as “The Real Estate Investor’s Lawyer,” and has a 39-year career in investing and helping investors nationwide with their transactions. Today, Jeff walks us through some of the most important things you need to know when setting up a JV. He explains the specific types of documents you’ll need to use when setting up a JV with your partner, as well as the difference between a limited partnership, general partnership, an LLC, a TIC, a syndication and a JV. He gives us tips on how to evaluate whether a JV is something that really makes sense for us and lays out the five crucial things to discuss with your joint venture partner to avoid a dispute and reach the best terms. By the end of this episode, you’ll be equipped and ready to set yourself up for a successful JV.
Key Points from This Episode:
- Active versus passive; the difference between a joint venture and a syndication.
- Why a joint venture is simpler and costs a fraction of the legal fees that a syndication does.
- The importance of setting up a personal database of potential joint venture partners.
- The types of documents you’ll need to use when setting up a JV with your partners.
- The problems a JV can solve and the benefits it can bring beyond the need for money.
- Five crucial things to discuss with your joint venture partner to reach the best terms.
- Discover how a TIC agreement can give you maximum flexibility within a joint venture.
- Discover the biggest cause of partner disputes and why it all comes down to expectations.
- How to avoid the risk of partner disputes by having tough conversations from the start.
- Cash calls, exit strategies, and litigation; other key points to address with your JV partner.
[bctt tweet=”I believe that joint ventures are the cheapest, easiest, fastest and safest way to do deals with other people’s money. — @reinvestoratty” username=”Whitney_Sewell”]
Links Mentioned in Today’s Episode:
About Jeff Lerman
Jeff Lerman has established a nationwide reputation as “The Real Estate Investor’s Lawyer.” He has been featured on TV, radio, in publications and in front of numerous real estate investment clubs as an expert on various real estate topics. He has been President of the Marin County Bar Association, Chair of the State Bar Real Estate Litigation Section and Chair of the Marin County Bar Association Real Property Section. He has been selected for inclusion in Northern California Super Lawyers for the past five years. He has received the highest rating possible for professional excellence and ethics by Martindale-Hubbell, as rated by his fellow lawyers. He has received the highest rating possible by Avvo.com, as rated by his peers and clients.
Jeff has been recognized as a “Leading Real Estate Attorney” by National Real Estate Investor magazine and as one of the “Top Attorneys in Northern California” by San Francisco magazine. He has lectured at UC Berkeley Fisher Center for Real Estate & Urban Economics and the USC Law Center. He is Managing Partner of Lerman Law Partners. Jeff has been practicing law for 39 years and is the former general counsel for two national real estate syndication companies. He has published articles nationwide and is a highly sought-after speaker. He’s also a principal in a family office and a real estate broker. You can visit his website at www.realestateinvestorlaw.com.
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