Real Estate Joint Ventures: What You MUST Know Before You Partner Up

A real estate joint venture is one of the most common forms of partnerships in the rental property investing world. Whether it’s you and a parent, a couple of siblings, a few friends, or a group of strangers, the joint venture agreement is a tool EVERY investor should know about. But, if misused, you could find yourself slapped with a SERIOUS fine or, even worse, jail time. So, make sure you don’t take the wrong steps, and follow this real estate attorney’s advice!
Kathy Fettke, multi-decade-long real estate investor, is back with Mauricio Rauld, real estate syndication attorney, to help keep you out of hot water. He knows the ins and outs of real estate partnerships, joint venture agreements, syndications, and any other structure you can think of. Most importantly, he understands what could get you in trouble and what to avoid. He’ll walk through exactly what a joint venture agreement is, what makes it different from a real estate syndication, and tips to follow so you don’t get a surprise visit from the SEC!
Have you done any joint venture deals in the past? How have you formed your past partnerships? Let us know in the comments below!
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Check Out Last Week’s Episode on Real Estate Funds:
• Real Estate Funds Expl...
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Is a Joint Venture Right for You? Here’s What to Know Before Partnering:
www.biggerpockets.com/blog/jo...
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10 Vital Aspects of a Bulletproof Joint Venture Agreement:
www.biggerpockets.com/blog/jo...
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Syndications-Everything You Need to Know BEFORE You Invest
www.biggerpockets.com/blog/bi...
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Connect with Mauricio:
BiggerPockets: www.biggerpockets.com/users/a...
Instagram: @mauriciorauld or / mauriciorauld
LinkedIn: / mauricio-rauld-esq-b29...
Website: www.premierlawgroup.net/
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Connect with Kathy on BiggerPockets and Instagram:
BiggerPockets: www.biggerpockets.com/users/k...
Instagram: @kathyfettke or / kathyfettke
#biggerpockets #onthemarket
00:00 Joint Ventures 101
0052: Rules You MUST Know
01:54 What is a Joint Venture?
04:29 4 Things You NEED for a Joint Venture Deal
06:45 Joint Venture Regulations
08:45 Ready to Partner Up?

[@klitsuk]

Wow. Thanks.

[@antoniostephano]

That was great. It made it so simple to understand the difference . Although there may be room for interpretation of whether someone is passive or not, just understanding that factor to be the difference is critical. Thank you!

[@MauricioJRauld]

Thank you. Yes, there is some nuance as to whether what you are doing is active enough to count but if the investor has no specific knowledge about real estate investing, for example, it makes it harder to argue that they are assisting in generating the return.

[@batman-xk4dv]

There are too many people calling their securities a "joint venture" yet no one is getting in trouble

[@jimb3317]

Thank you I enjoy these segments

[@oleopathic]

Thank you for video on JV, Mauricio and team.
What qualifies as "being involved" for each member of a JV inside an LLC?
Can one member handle all the communication and negotiation while another provides beauracratic support and yet another technical IT support and finally another legal support ?
Also, who is asking about the responsibilities of members? IRS, state, or local government?
How are responsibilities documented and tracked? Are there minutes to be kept ?
Mauricio, do you work with JV members or only syndicate schemes on a retainer ?

[@dhowto3005]

Thanks!

[@darrellbratton9679]

Awesome Kathy

[@kavinvanich]

Thanks would let my dad know 😊