Below are the example of the partnership and grouping that we use model:
Noted that different people have difference preference and style.
When we look for JV, by natural instinct, we only allow partner that are trustworthy and responsible to join the group.
If two person partnership:
| Role | Profit | Legal |
| Deal + 50% fund | 50% | Mutual agreement – Deed of Trust |
| Loan +50% fund | 50% |
Positive cashflow (Rental can cover monthly instalment)
| Role | Profit | Legal |
| Deal + 100% fund | 70% | Mutual agreement – Deed of Trust |
| Loan only | 30% |
Negative cashflow (Rental cannot cover monthly instalment)
| Role | Profit | Legal |
| Deal + 100% fund | 80% | Mutual agreement – Deed of Trust |
| Loan only | 20% |
As a general rule of thumb, for group investing, the system is as below
| Role | Profit | Legal |
| Fund | 30% | Mutual agreement – Deed of Trust |
| Loan ability | 30% | |
| Deal | 40% |
The properties that being purchased in JV partnership or group, preferably get them bind with Deed of Trust, which is the legal document acknowledge by lawyer and court., in case there is any conflicts or death of the members.
As a team, member that joined the JV group must be are matured and thoughtful. By this can help to avoid unnecessary trouble arise in latter stage.
We prefer the JV relationship which is based on trust.
Have You Ever Turn Down the Deal Because You Don’t Like The Property’s Feng Shui? Stay tune for next session.
Ooi
What does (a) Deal (b) Loan (c) Fund mean?
Chat Property Malaysia
AuthorDeal=Meaning the person who found the deal and negotiate through
Loan=The person used his name for the loan application
Fund=The person who come out with money