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?