21 - Scaling Up Toolbox – Doing Joint Ventures the Right Way
In this episode of Get Real Wealthy Season 2, Quentin talks about his book Scaling Up Toolbox, a how-to guide for real estate investors who don't have to use their own money to buy property.
Quentin talks about the book and why it's important to scale your portfolio, and why it's necessary to work with others. He says that real estate is a team business. If you can bring members on your team who become part of that inner circle, you can actually grow your portfolio and grow other people's portfolios at the same time. You can use a co-venture agreement in order to create a partnership together, where people play different roles.
He adds that you should always have that co-venture agreement written or reviewed by a lawyer. You can find a template of the co-venture agreement that Quentin uses at DurhamREI.ca. There are different ways that you can structure a joint venture, depending on your level of involvement. He suggests consulting your accountant and your lawyer to make sure that you've got it covered from an accounting, legal and liability perspective. In addition, you should always talk to your insurance broker. Quentin further adds that you should make sure that all the things done in writing, do not do a handshake agreement.
He says that you should make sure that you have those agreements signed and closed on, and everything reviewed before you close on the actual property itself. The next thing that you're going to want to do is watch out for provincial legislation and securities legislation. You do not want to be on the wrong side of securities legislation. In conclusion, Quentin announces that for a limited time, the listeners of the podcast can access this book on jointventurebook.com