Do silent partners have to appear on title?
- Thread starter VicChung
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QUOTE (VicChung @ Mar 21 2009, 11:58 PM) Does any one know if silent partners appear on title? thanks, Vic
They can (at the choice of investor) .. but they usually do not !
They may have to depending on bank`s requirement and your ability to prove downpayment !
An investor may require the right to put his interest in the property on title after closing via a caveat.
They can (at the choice of investor) .. but they usually do not !
They may have to depending on bank`s requirement and your ability to prove downpayment !
An investor may require the right to put his interest in the property on title after closing via a caveat.
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QUOTE (thomasbeyer2000 @ Mar 22 2009, 11:16 AM) They can (at the choice of investor) .. but they usually do not !
They may have to depending on bank`s requirement and your ability to prove downpayment !
An investor may require the right to put his interest in the property on title after closing via a caveat.
Why wouldn`t both go on title??
Personally I feel it is the best way since I want to strengthen my application and the investor has the comfort of not risking losing their interest in the property.
Mind you I am just completing my first JV, I want to keep it simple and straighforward.
They may have to depending on bank`s requirement and your ability to prove downpayment !
An investor may require the right to put his interest in the property on title after closing via a caveat.
Why wouldn`t both go on title??
Personally I feel it is the best way since I want to strengthen my application and the investor has the comfort of not risking losing their interest in the property.
Mind you I am just completing my first JV, I want to keep it simple and straighforward.
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- 189
From my experience with residential units, everyone who is going to be on title MUST also be on the applicable mortgage.
So unless you are setting up your JV as a `caveat` or some other form of interest in the property, the JV partner will need to be on title if they are also qualifying for the mortgage..
Unless this has changed in the last few months since I`ve bought my last property!
So unless you are setting up your JV as a `caveat` or some other form of interest in the property, the JV partner will need to be on title if they are also qualifying for the mortgage..
Unless this has changed in the last few months since I`ve bought my last property!
QUOTE (MitchCollins @ Mar 22 2009, 01:23 PM) From my experience with residential units, everyone who is going to be on title MUST also be on the applicable mortgage.
So unless you are setting up your JV as a `caveat` or some other form of interest in the property, the JV partner will need to be on title if they are also qualifying for the mortgage..
Unless this has changed in the last few months since I`ve bought my last property!
One of the potential silent partners wanted to participate, but did not want to be responsible for the mortgage. For example, if someone invested $50,000 and the real estate market collapsed, they did not want to be responsible for the mortgage amount which on 4-plex or 6-plex could be in the $1million because their name was title.
It is a risk mitigation plan for them. How should the contract be drawn to reflect the partner`s participation?
So unless you are setting up your JV as a `caveat` or some other form of interest in the property, the JV partner will need to be on title if they are also qualifying for the mortgage..
Unless this has changed in the last few months since I`ve bought my last property!
One of the potential silent partners wanted to participate, but did not want to be responsible for the mortgage. For example, if someone invested $50,000 and the real estate market collapsed, they did not want to be responsible for the mortgage amount which on 4-plex or 6-plex could be in the $1million because their name was title.
It is a risk mitigation plan for them. How should the contract be drawn to reflect the partner`s participation?
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QUOTE (MitchCollins @ Mar 22 2009, 01:23 PM) From my experience with residential units, everyone who is going to be on title MUST also be on the applicable mortgage. the JV partner will need to be on title if they are also qualifying for the mortgage..
...
.. must and if are strong words in the English language !
Ask yourself or the JV partner:
a) does JV partner want to be on title ?
b) does JV partner want to qualify for mortgage ?
JV partner does NOT have to be on title .. but could .. or perhaps should because you alone may not qualify for a mortgage !
...
.. must and if are strong words in the English language !
Ask yourself or the JV partner:
a) does JV partner want to be on title ?
b) does JV partner want to qualify for mortgage ?
JV partner does NOT have to be on title .. but could .. or perhaps should because you alone may not qualify for a mortgage !
My joint venture partner over the years allows me to qualify for the mortgage on my own, get title and then registers a caveat as "beneficial owner". The agreement is registered with the caveat. We never get the morgage company involved simply because I have always been able to qualify and we just found it simpler that way.
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QUOTE (EdRenkema @ Mar 22 2009, 02:45 PM) Why wouldn`t both go on title??
Personally I feel it is the best way since I want to strengthen my application and the investor has the comfort of not risking losing their interest in the property.
Mind you I am just completing my first JV, I want to keep it simple and straighforward.
One of our partners did not want to go on title and qualify for a mortgage because of the many different businesses he owns and didn`t want to go through the process of disclosing all the information to the bank. We used this as a selling tactic. He was able to invest into real estate with limited work on his end.
Personally I feel it is the best way since I want to strengthen my application and the investor has the comfort of not risking losing their interest in the property.
Mind you I am just completing my first JV, I want to keep it simple and straighforward.
One of our partners did not want to go on title and qualify for a mortgage because of the many different businesses he owns and didn`t want to go through the process of disclosing all the information to the bank. We used this as a selling tactic. He was able to invest into real estate with limited work on his end.
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QUOTE (EdRenkema @ Mar 22 2009, 02:45 PM) Why wouldn`t both go on title??
I have seen two key reasons a JV partner may not want to be on mortgage/title;
1) As mentioned earlier, they are prepared to risk their investment, but do not want to be personally responsible for the entire debt of the project
2) They do not want to "spend" any of their credit room, which would impede their ability to qualify for their own personal acquisitions such as a bigger home, second home, third home etc.
I have seen two key reasons a JV partner may not want to be on mortgage/title;
1) As mentioned earlier, they are prepared to risk their investment, but do not want to be personally responsible for the entire debt of the project
2) They do not want to "spend" any of their credit room, which would impede their ability to qualify for their own personal acquisitions such as a bigger home, second home, third home etc.
QUOTE (kboughen @ Mar 23 2009, 07:13 AM) I have seen two key reasons a JV partner may not want to be on mortgage/title;
1) As mentioned earlier, they are prepared to risk their investment, but do not want to be personally responsible for the entire debt of the project
2) They do not want to "spend" any of their credit room, which would impede their ability to qualify for their own personal acquisitions such as a bigger home, second home, third home etc.
So in this case would the other party have to qualify for the mortgage then?
1) As mentioned earlier, they are prepared to risk their investment, but do not want to be personally responsible for the entire debt of the project
2) They do not want to "spend" any of their credit room, which would impede their ability to qualify for their own personal acquisitions such as a bigger home, second home, third home etc.
So in this case would the other party have to qualify for the mortgage then?