Listen: How to Avoid a Lawsuit with your Partner
Perhaps the single most important lesson I teach investors is how they can avoid disputes and lawsuits with their partners. Why? Because the time, money and effort consumed by litigating partner disputes can be so significant. Having litigated a number of those partner disputes, I can tell you that virtually every one could have been avoided if the partners had known what to do from the beginning of that “business marriage”.
I was interviewed on this topic recently by Whitney Sewell of The Real Estate Syndication Show where I explained what every investor must know to minimize the risk of partner disputes. Just click here and you can watch the complimentary, on-demand video on your computer or phone, or listen while you drive, or download the transcript. Whichever method you choose, this is critical information for every investor.
Key Points You will Learn in This Podcast:
- Active versus passive; the difference between a joint venture and a syndication.
- Why a joint venture is simpler and costs a fraction of the legal fees that a syndication does.
- The importance of setting up a personal database of potential joint venture partners.
- The types of documents you’ll need to use when setting up a JV with your partners.
- The problems a JV can solve and the benefits it can bring beyond the need for money.
- Five crucial things to discuss with your joint venture partner to reach the best terms.
- Discover how a TIC agreement can give you maximum flexibility within a joint venture.
- Discover the biggest cause of partner disputes and why it all comes down to expectations.
- How to avoid the risk of partner disputes by having tough conversations from the start.
- Cash calls, exit strategies, and litigation; other key points to address with your JV partner
If you are entering a partnership or joint venture of any kind, whether it is an LLC, corporation, general or limited partnership, call us. We can set it up to minimize the risk of future disputes. If you are having challenges with a current partner, call us. We may be able to help resolve your dispute and avoid a lawsuit. If litigation with your partner is inevitable, we can handle that as well. If you’re not sure if your agreement is properly drafted to minimize your risks of future disputes and/or adequately protect you in the event of a future disagreement, call (415-454-0455 x234) or e-mail ([email protected]) to learn about our special “Partnership Agreement Audit” offer.