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Does anybody have any advice as to how they structure their JVs?


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I've been conducting a lot of research with regards to the structuring of JVs within the area of buy to sell. For example if I had close family with money to invest in a property with me, but the proposal is for them to be taking a hands off approach and their role is limited to providing funds only. How could you legally structure this? The funds couldn't gifted as the family member would expect interest on their investment to be paid upon sale of the asset.

I presume the investor can become a non-executive shareholder within a limited company structure, but this may not always be appealing as it could seriously limit your pool of investors, as in theory you would need to operate many companies for various deals. The below links are well worth a read, as from this I've concluded that many people are probably acting illegally from the point of view of offering unregulated collective investment schemes.

I know there are people out there doing this, but possibly they are just taking the risk and hoping for the best. I'd be grateful for peoples experience on this matter. Thanks in advance

 

http://www.russell-cooke.co.uk/media/1908/a-client-guide-to-property-joint-venture-vehicles-june-2011.pdf

 

https://www.fca.org.uk/consumers/unregulated-collective-investment-schemes

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