WHO IS THIS FOR?
​In simplicity, what a co-venturer needs to do is read and understand the investment documents, get legal advice, write a check, and relax. However there are a few more things to consider and align with to make sure this is for you.
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Ways to know if you qualify and this is for you:
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You want to be in real estate as an investor but you are not wanting to or able to commit the full time study of real estate as an asset class and you want to partner instead with a real estate investor who has fully aligned interest
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You have a minimum $100,000 to invest (for some deal it could be as little as $50,000)
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You do not need the money for 5 - 8 years, and although this type of investing we only buy cash flow positive investments, you are not depending on the cash flow for living expenses.
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You have a net worth of $250,000 or more
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You make at least $50,000 or more in your job.
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You are interested in and understand why multi family rental investing is the one of the best opportunities in real estate right now.
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Core Strategy: First and foremost this is for you if you want to buy and hold (8 yr target) cash flow positive multi family rental properties in growing Canadian markets.
Type of Partnership: You are a money partner. I (Brad), the managing partner have the experience and expertise to find, negotiate, prepare financing, and manage deals for long term health. Partnership is typically somewhere between 50% - 50% or 70% - 30%. Depends on the deal. (General managing partner only makes money after you get paid back + Your profit share)
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Deal Structure: There are three parts to all real estate deals. You need some money down, you need a mortgage partner to loan on the deal, usually a bank or credit union, and you need someone with experience and expertise to manage and oversee everything for the full duration.
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1. Deal Structure #1 = Smaller Deals like a Duplex. You, the money partner, qualifies for the mortgage and puts up the down payment. Foundationz or Brad, the managing partner, puts the deal together and manages for profit. Profits are then split down the line after, you, the money partner has been paid back.
See Legal Structure Details Here.
"One Partner on Title Ownership"
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1. Deal Structure #2 = Larger Deals like multi unit building. These are the better opportunity and the core strategy at Foundationz for creating stable wealth for investors. You, the money partner are one of a few different money partners. The property is purchased under a corporate structure which acts as a trustee for the Join Venture Partners. The property itself and the corporation qualify for the loan, rather than you, which has a ton of benefits and better loan terms. The money partners have limited liability. Foundationz or Brad, the general partner, puts the deal together and manages for profit on behalf of the limited partnership structure. A joint Venture Agreement is signed. The general partner / managing partner only makes money after the partners are paid back.
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See Legal Structure Details Here.
"Corporate Ownership as Trustee for Joint Ventures"
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Profits & Vested Interest: Unlike working with portfolio managers for stocks and mutuals where the manager gets 1 - 2 % profit on your investments regardless of performance, at Foundationz our interest and risk is 100% aligned with the investors.
This is a very important difference. We onmly make money if you make money and if there are any challenges , we are on the hook with you.
Once profits are realized and investors are paid back, then and only then, profits are split based on the joint venture agreement. So basically, you the money partner gets your full initial investment back first and the managing partner only makes money if money partner makes money. Vested interest.
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Target Return: 10 - 20%. If the total return on a deal is 20% and the split is 60% - 40%. The money partner would make 12% of profits after receiving back there initial investment and the managing partner would make 8%.
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Risk: Profits and shared equally and so are risks. any cash call that could arise are split in accordance with the JV Agreement. ​​​​​​​​​​
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