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The Property Podcast

ASK251: How should I structure this joint venture? PLUS: Can I make use of my off-plan gains?

The Property Podcast

Rob Bence & Rob Dix

Education, Business News, Business, News, Investing

4.82K Ratings

🗓️ 1 September 2020

⏱️ 9 minutes

🧾️ Download transcript

Summary

It’s Tuesday. And that means another episode of Ask Rob & Rob.  First up we have Ed who wants to ask about joint ventures.  Ed has a few properties he’s worked on using the buy, refurbish refinance strategy. They’ve gone down so well that Ed now has a few contacts looking to do joint ventures with him. They want to put in the cash while he handles the rest of the workload.  He wants advice from Rob & Rob on how to structure this from a legal point of view to protect both himself and the investor.  There are many different ways to structure a joint venture, but there are two common ones. And in this episode, Rob D runs through both of these to help you understand the two most popular ways people run their joint venture agreements. The important thing is to make sure the structure is right for all parties. The second caller this week is Pete. He’s got his first property due to complete this year. He bought it at £250,000 and it’s increased by around £30,000-40,000 already.  Pete wants to know if he can use this increased value as part of his deposit on the buy-to-let mortgage he’s taking out on it. He’s buying his property through a limited company so wants to leverage what he can.  Will Rob B make Pete’s day or is Pete asking the impossible?  Rob B does give a sneaky insight into valuations and dishes some dirt on why valuations are always done on the purchase price, so this is a great episode to help anyone who’s purchased off-plan and is looking to take advantage of any uplift in value.  Do you have a buy to let or property investment related question for Rob & Rob? You could feature on the next episode by giving us a call on 013 808 00035 and leaving a message with your name and question (normal UK call rates apply).    Or if you prefer, click here to leave a recording via your computer instead. The next question on Ask Rob & Rob could be yours.  Have you joined us over on the Property Hub Forum yet? Our online community is friendly, informative, and the members are waiting to welcome you with open arms. So get yourself over and introduce yourself. See omnystudio.com/listener for privacy information.

Transcript

Click on a timestamp to play from that location

0:00.0

Hi, I'm Rob. And I'm Rob. And this is Ask Rob and Rob.

0:05.1

Welcome to Ask Rob and Rob, where we give answers to your burning property questions. Ed and Peter have done the honors this

0:14.4

week they've got a great couple of questions into us that we're going to be

0:17.4

answering very shortly. First though we just need to give you a quick reminder of

0:21.2

how you can send in that burning question of your own.

0:24.0

You have two options you can call in and leave us a voicemail.

0:26.8

To do that, call 013 808,00035, or you can get your questioning via our lovely sparkly website if you go to

0:36.2

Property Hub.net forward slash ask once you get there it's very simple follow the

0:41.4

instructions leave a message and remember with

0:44.7

either method if you mess it up just go again it doesn't matter of course we'll play the best

0:49.6

version and that's what we've got today the very best versions from our two lovely listeners.

0:54.4

And first up, we've got Ed.

0:56.0

Hi Rob and Rob, my name is Ed.

0:59.0

I'm interested in getting your thoughts regarding joint ventures.

1:02.0

I understand the notion

1:04.0

around them and I've previously been purchasing a small portfolio of

1:08.8

properties loosely following the buy refurbish refinance model.

1:13.4

I've got a number of people who have contacted me, friends and family asking if I would be interested

1:19.0

in working with them, if they were to provide the cash for a deposit and the refurbishment if I would source

1:25.7

the deal, manage everything through its completion and eventually getting the property rented

1:30.6

out and managing that.

1:32.1

My question is regarding how this would normally be

...

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