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Joint Venture (JV) Contract

This document outlines a joint venture agreement between Investor A and Investor B to wholesale a property currently owned by a Seller. Investor A has an existing contract with the Seller, while Investor B will locate an assignee to purchase the property. The investors will split profits 50/50 after expenses. Investor A is responsible for communicating with the Seller, while Investor B must locate a qualified assignee. The agreement terminates 90 days after signing unless an assignee closes within the original contract timeframe. Any disputes will go to mediation.

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Gabe Coyne
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241 views3 pages

Joint Venture (JV) Contract

This document outlines a joint venture agreement between Investor A and Investor B to wholesale a property currently owned by a Seller. Investor A has an existing contract with the Seller, while Investor B will locate an assignee to purchase the property. The investors will split profits 50/50 after expenses. Investor A is responsible for communicating with the Seller, while Investor B must locate a qualified assignee. The agreement terminates 90 days after signing unless an assignee closes within the original contract timeframe. Any disputes will go to mediation.

Uploaded by

Gabe Coyne
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Wholesaling Joint Venture Agreement

Investor A, _______________________________, and their controlled entities (subsequently


referred to herein as “IA”) have agreed to create a joint venture agreement with
Investor B, _______________________________, and their controlled entities (subsequently
referred to herein as "IB") on a transaction involving a Wholesale Assignment on the
property located at: __________________________________________________
(subsequently referred to herein as the "Property") currently owned by:
______________________________________ (subsequently referred to herein as the
"Sellers").
WHEREAS, IA has a signed an enforceable contract (the “Contract”) with a Seller, and
WHEREAS, IB has a list of potential assignees and/or possesses the skills necessary to locate
an assignee for the contract.

Under the terms of this Agreement, IA has agreed to share profits created from the sale of the
Property exclusively with IB in a joint venture arrangement. IA and IB collectively (subsequently
referred to herein as “Investors”) agree to the following relationship:
Definitions
IA and IB are engaging in a Joint Venture Partnership to facilitate a Wholesale Assignment
(subsequently referred to herein as “Assignment”) between the Seller that IA has under contract
and whomever the Investors can locate collectively, or on their own, as an Assignee.
The Investors understand there are risks associated with this strategy and agree to defend and
indemnify the other in the event of a lawsuit or claim resulting from the negligence, bad faith
and/or misconduct of the other.
This agreement is not intended nor shall be construed as a general partnership, principal/agent,
or employer/employee arrangement. The Investors shall be responsible jointly for filing the
required tax forms for reporting the profit or losses from this Venture.

Term of Agreement
The term of this Agreement begins at the time this agreement is signed and dated until the time
the contract closes for the Property between the Assignee and the Seller.

Limited Scope
This Agreement is only valid for the Property as it is listed above and not a general partnership
between the Investors.
The Agreement will terminate 90 days after the Agreement has been signed and dated, unless
IB locates an assignee who can close the property with the seller within the time period stated in
the contract for the Property (including reasonable extensions).
Responsibilities of the Investors
The Investors should collectively use their earnest efforts to consummate a successful
transaction. Individual responsibilities for each Investor are as follows:
IA will communicate with Seller and instruct Seller to ready the Property for sale, keeping
the Property clean, keeping the utilities on, safeguarding the home, and submitting documents
needed for the process, and move out prior to the closing date in the Contract.
IA cannot guarantee that the Seller will complete the above items. In the event that the
Assignee
does not close or is unable to close due to an unforeseen issue on their own part or on the part
of the Seller, neither investor will be compensated or reimbursed for expenses incurred during
the term of this Agreement.
IB’s specific responsibilities include but are not limited to the following:
Put forth his best efforts to locate an Assignee for the contract and/or a backup Assignee.
Refrain from misrepresenting this Agreement, the relationship of the Investors, and the nature of
the Agreement between IA and Seller.
Refrain from changing the terms or price of the Property without first consulting with IA
Identify and pre-screen the potential Assignees.
Refrain from contacting the Seller without the express permission of IA.
Orchestrate a meeting with the potential Assignee and IA to sign all of the necessary documents
and obtain a deposit and assignment agreement.

Splitting and Documenting the Profits


The profit from the transaction shall be in the form of an Assignment fee that will be disclosed
on
the closing statement between Seller and Assignee

Investors agree to the following (after expense) profit split:


Investor A: 50% of net profits | Investor B: 50% of net profits
Expense Sharing
Expenses can be incurred in a transaction through various activities including performing
repairs, cleaning, maintenance, paying for utilities or to have utilities turned on, inspections, etc.
In all cases expenses (over $25) should be discussed and agreed to in writing by Investors prior
to the commitment to spend the money. Any agreement must be attached in Addendum to this
Agreement.
In all cases, expenses should be separately recorded by each Investor in each transaction. At
the conclusion of any of the scenarios listed above, all expenses will be divided and paid equally
among all of the Investors.

Additional Provisions
In the event of a disagreement between parties regarding items not covered by this Agreement,
parties will agree to mediation before initiating any other legal options. Any dispute related to
this Agreement which is not resolved through informal discussion will be submitted to a mutually
acceptable mediation service. The parties to this Agreement shall bear the costs equally and
pay reasonable attorney’s fees incurred by the winner of the arbitration.
This assignment shall be binding upon and shall inure to the benefit of the parties and their
respective heirs, legal representatives, successors, and assigns.
In case any one or more of the provisions contained in this Agreement shall for any reason be
held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or
unenforceability shall not affect any other provision thereof and this Agreement shall be
construed as if such invalid, illegal, or unenforceable provision had never been contained
herein.
This Agreement constitutes the sole and only agreement of the parties hereto and supersedes
any prior understandings or written or oral agreements between the parties respecting the within
subject matter.
This Agreement shall be interpreted under and in accordance with the laws of the State of
___________.

Signatures below represent a full understanding of this Agreement, a full understanding of the
Wholesale Assignment process and its risks as well as agreement to all of the above terms and
conditions as of the date written below.

Investor A: __________________________________ Date:____________________________

Investor B:__________________________________ Date:_____________________________

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