I recently had my friend Kevin Boughen (REIN mortgage broker) on an exclusive webinar...and we talked solely about Joint Ventures and **gasp** mortgage fraud...

Here's some of the takeaways from that:

~ begin transcript from blog~

When you’re part of a real estate jv as either the expert or the money investor; and you own X% of the property without being on title, there are very straightforward ways to protect yourself.

1. The first way is to have a proper joint venture agreement preferably prepared, or at least reviewed by a lawyer representing you.

This is to make sure your interests are very clear-cut in a contract.

By the way, it makes total sense to have this real estate jv agreement benefit ALL parties the same way doesn’t it?

The next thing I would do is have it notarized by all parties.

2. Register the real estate jv agreement against title.

Now a lot of people get confused with this.

Because having the agreement registered against title is not the same as an individual GOING on title.

By doing this, you’re not all of a sudden on title.

You’ve registered this real estate jv contract AGAINST title just like somebody would register a lien against title.

And what it means is, title is no longer clear - there’s something registered against the title… in this particular case it would be the real estate jv agreement.

How Registering Against Title Works

When you have your real estate jv agreement registered against title, it means the property cannot be sold and cannot be refinanced without that JV agreement being dealt with.

In other words let’s say I’m in a deal with someone who is on mortgage and title and our real estate jv agreement is not registered against title.

All of a sudden three months (three years, five years, doesn’t matter) later they decide they will sell the property, keep all the cash and NOT tell me about it…how am I protected against that?

Well if I’ve registered the joint venture agreement against title, they can’t sell the property without me knowing.

So the property cannot be sold or even refinanced without me removing that notice to title - which is making sure I’m getting my fair share.

3. Other people have gone a step further and registered a mortgage against title if it was a firm dollar value associated with it…however, it’s the same kind of impact.

So there you go - simple steps to protect your interest in a real estate jv deal without getting into a huge legal battle or anything like that.

I hope you liked this post - let’s get a conversation going below…let me know your thoughts!

~ end transcript from blog ~

JoeRagona said:

When you have your real estate jv agreement registered against title, it means the property cannot be sold and cannot be refinanced without that JV agreement being dealt with.

Click to expand...

Oh my goodness, this is hilarious.

Folks, call up your local real estate legal professional and find out for yourself if there is any way to register your JV interest on title. I called up the #1 recommended REIN lawyer in Alberta and he wasn't confident he knew how to do it. No joke. He suspected that an interest could be registered on title but you can only register an interest on the LAND ONLY. You cannot register an interest in Alberta against the building.

I really suggest you be suspicious of what Joe is touting here as a "coach" as I think if you follow his advice you are likely to end up in a lot of legal trouble.


The best way to run a JV with a bank is to disclose everything. Qualify for the home with your business partner. Put both parties on the mortgage.

Ending up in jail or on the front page of the newspaper is not worth it. The professional real estate investing process is not hyper or sneaky. You will earn somewhere between 3.5% - 6.5% yield on your properties. That is it.
Focus:

Your business is one of service, not of get rich quick. Housing is a family's #1 expense. It deserves respect and these tenants are paying for stable and reliable quality of life.

This sort of nonsense makes this business sound like it is all about "me and my riches". It ISN'T. Being a professional investor is about providing quality housing and stellar customer service. We create the background that allows families to grow. It is a huge responsibility and goes far beyond any get rich scheme. Anything less and you should not be in this business.

Hey All,


I TOTALLY agree that banks should know what’s going on…

The reason I did the webinar with Kevin Boughen

you can watch the whole thing here if you’d like…

warning - this is the link bait as my 'friend' SweetZone is talking about…which means when you go to my site, Google may “see” that I have traffic and “rank” me high in the search engines…Oh no...

hmm wonder why nobody ELSE thought of this…LOL

AND, you may just see something interesting there that you'll want...so BEWARE. (read: totally sarcastic for the sake of my response to SweetZone)

Anyhoo..

I don’t believe I claimed to be the Alberta expert or topic expert on mortgage fraud…

Check out the webinar for yourself and judge what I’m saying rather than listening to someone who lurks inside forums as his daily ritual to pick apart parts of posts that don’t exist, or blow them out of proportion to try and “position” himself.

Remember, we can’t please everyone in the world - there are haters and there are people who will stand behind you…

This is the way the world works.

I welcome any comments, suggestions etc

If I make a mistake, hey, I’ll gladly correct it

Heck, I don’t even know what a “straw” buyer is…

Ah well.

At least I’m not hiding behind a keyboard…(ahem Sweet)

I’m out there doing what I know best - and you can meet me, chat with me and decide on your own how much “bait and switch” I put out there.

The crew here at REIN know me well - the thousands of posts I’ve created in the past have hopefully helped many of the members (when I was a REIN member for the 6 strong years)

Again SweetZone, thank you for the challenges…my coaching response has increased these two weeks just because of these awesome threads…

Peace out!