To keep things simple and legal we will define who each person or party is and the meaning of some words in the Joint Venture Agreement.
1. Joint Venture Agreement – Is a legal document explaining the duties and the rights of the Developer and the Co- Developer.
2. Developer – Is considered as The Century 22 Investment Group – Is also considered as the borrower and the working partner.
3. Co- Developer – Is considered the financial assistant, lending partner or investor and is not a working partner. The Co- Developer can be an individual or a corporation.
4. Collateral – Is the real estate purchased by The Century 22 Investment Group for the purpose to secure the Co- Developer who is the financial assistant.
5. Profit – Is the profit or money made in (1) one year and or (12) twelve consecutive months; and paid to the Co- Developer for the money the Co- Developer loans to The Century 22 Investment Group.
6. Term – Is the length of time the Joint Venture Agreement, made by and between the Developer and Co- Developer.
Note: The Joint Venture Agreement may have more than one Co- Developer in it. This will be based on the dollar amount loaned to The Century 22 Investment Group and also on an individual bases with the Co- Developer.
The example below is based on one or more Co- Developers loaning $200,000.00 total to The Century 22 Investment Group. For a term of (1) one year, with the minimum profit being made and the sharing of the profits made from each sale of the single family homes.
(For the Co-Developer with a minimum of $1,000.00 to invest, please click here.)
Frequently Asked Questions and answers, click here.
Notes: Loan amounts, terms and profits are discussed privately and individually between the potential Co- Developer and The Century 22 Investment Group. All potential Co- Developers are welcome to have legal representation at the Co- Developer's own expense.
Term is a minimum of (1) one year or (12) twelve consecutive months.
Renewal of a Joint Venture Agreement is based on both the Developer and Co- Developer agreeing to renew and agreeing to any new terms to the Joint Venture Agreement.
Early Termination of a Joint Venture Agreement by the Co- Developer requires the Co- Developer to give the Developer a (60) sixty day written notice; and the written notice needs to be signed by both the Developer and Co- Developer for approval.
Exit Strategy – The Century 22 Investment Group may sell a specific property to; the buyer living in the specific property or to a third party, and or mortgage the specific property. In the event of either scenario the proceeds of the sale or mortgage will go to paying the Co- Developer or Co- Developers in full, including any profits owed.
The Century 22 Investment Group reserves the rights to sell any specific property at any time to; the buyer living in the specific property or to a third party, or mortgage the specific property; with the understanding that the proceeds from either scenario will be redistributed back into the escrow account to be used again to purchase and close on another property in a reasonable time frame and for the purpose of producing a profit on the Co- Developer(s) funds in the escrow account. This would be handled and verified by the Escrow Company and Escrow Agent, since they will be handling the closing on the specific property.