We specialize in joint venture opportunities where we find the deals, close the deals with our team, oversee all of our own properties (accounting, tenants, renovations, property management, etc.) throughout the years and eventually sell them. 

Our partners fund the deals.We take care of everything else.We split the cash flow 50/50 and then once we sell the property, firstly, you are paid back your initial investment and then we split the equity 50/50.

We set up with each partner as follows:

Our Joint Venture may be structured on a personal one and one basis or it may be structured with ownership in our company name and yourself personally or in one or two companies or in one name with a Joint Venture agreement registered on title to specify the details.

We have full access to the bank account and oversee everything from here along with our team that takes care of accounting, property inspections, appraisals, legals, renovations, etc.  You receive quarterly/semi-annual/annual statements (as per your request) and updates as to what is happening within the company. 

We choose only the best properties to keep, manage all of our own properties, hand select all tenants, work with all the partners, work with all sellers/buyers, etc. 

The title for all properties may be in a company's name or we may both be on title in a pre-determined structure and we have a joint venture agreement in place on the side also secured on title.

Alternately to take advantage of several financing options one party may be on title and the other party will secure their interest via the Joint Venture Agreement and a caveat on the title indicating the existence of the JV Agreement. This is not an exhaustive example of the Joint Venture-rather a sample of the most common means of producing a joint venture.

We also work with RRSP holders to place a 2nd mortgage on the property after closing so that we can pull out some of our investors money in order for them to invest in more properties.  There is no guarantee as to how long this might take.

All the work is taken care of for you by someone who has a vested interest in the property. We have extensive experience in all areas of real estate. 

Some examples of a few properties we own are as follows:

1. Purchased a single family home with a suited basement and single detached garage (Red Deer) in June, 2006 for $195,000 (Red Deer is number 4 in REIN's Top Ten Towns to invest in for 2007. Red Deer has near zero vacancy rate and the rental rates are strong with an excellent selection of tenants to choose from upon listing a rental vacancy.)
   
   Our investor qualified for the financing on the property, made the down payment and put a buffer in the account.  We also completed approx. $2500 in renovations.
   
   The property has increased in value (in 5 months) to $235,000 based on resale comparables that have sold in the area! At present rents the home has a positive cash flow of $312/month.

2. Purchased a single family home (tri-plex) with a suited basement and (Red Deer) in October, 2006 for $220,000 (Red Deer is number 4 in REIN's Top Ten Towns to invest in for 2007. Red Deer has near zero vacancy rate and the rental rates are strong with an excellent selection of tenants to choose from upon listing a rental vacancy.) The home appraised at $245,000.
   
   We did a 50/50 Joint Venture with both parties contributing 50% of the down payment and initial purchase costs and put a buffer in the account.  We also will be completing approximately $5,000 in renovations over the next 6 months.
   
   At current rents the tri-plex has a positive cash flow of $135 /month and with new rent increases it has a positive cash flow of $620/month!

Property values in Alberta have increased from 22 to 54% in the last year! That type of growth is not sustainable-however CMHC and REIN are both predicting a growth in the 8-12% range over the next year.

All of our suites are currently full on 6 month leases with excellent tenants.  We have our pick right now with such low vacancy rates.

We have several deals that we are currently looking at similar to the examples above as well - we have mostly been purchasing single family with suited basements and double detached garages.  We also look for R2 and RM4 zoning in particular areas. 

I have also attached a "light version" of a Joint Venture agreement.  The agreement is adjusted to fit each partnership individually, but this is where it starts. 

Each property would have its own joint venture agreement.  We will include a sentence that states "the intention is to keep the property for good".  The reason that we put this is for tax purposes upon the sale of the property. 

If it shows that we intend on keeping it for good, but we sold for whatever reason eventually (say 10 years for example), the property would fall under capital gains and we would only have to pay tax on 25% of the equity.  If we do not intend on keeping it, we would be taxed at twice that rate.

Our actual plan right now is to hold all of our properties approx. 5 - 10 years, but this depends on the goals of each individual partner as well.  We are more than willing to lengthen or shorten this time period.

Should you still be interested in the opportunity of joint ventures or have any other questions, please feel free to email me or give me a call so that we can discuss it further.  I can also provide you with other partners phone numbers or email addresses if you would like to be in touch with them for reference. 

MAKE THE RIGHT MOVE with Randy and Sandy Bett

                                        Levels of Joint Ventures

Cooperative Level-At this level you contribute 75% of the initial investment/reserve fund and assist with accounting/management. Both Parties share the cash flow/equity growth on a 50/50 basis. This level is suitable for someone who would like to commit time to some of the details of property management. Expectations for the 75% money partner would include a yearly inspection of the property and gathering of income/expense statements for book keeping purposes, addressing any city/municipal concerns, dealing with tenant issues while one party is committed to other events. Equity growth and cash flow are split 50/50.

Passive Level-Now you're at the point where you have an armchair investment portfolio in real estate. You provide 100% of the initial investment/reserve fund and your real estate expert and their team provides all of the expertise/property management/accounting/maintenance/tenant selection/marketing/advertising. Each party shares equally in the cash flow and in the equity growth. As always this strategy works well for a "Fix and Flip" or a "Buy and Hold" property. Now the expectation of the JV money partner is that ALL aspects of operating the rental property are handled by us. Yearly reports would provide an overview of growth and income. As well interim reports may be requested. Equity growth and cash flow are split 50/50.

JOINT VENTURE AGREEMENT BASIC VERSION FOR INFORMATION SUMMARY ONLY

THIS JOINT-VENTURE AGREEMENT IS MADE THIS          DAY OF                20__    

BETWEEN:                                                                      (hereinafter referred to

                                                                                                                        as   'A')

                        - and -

                                                                                           (hereinafter referred to

                                                                                                                        as   'B')

WHEREAS  the Parties hereto have agreed to form a Joint-Venture to acquire, manage and eventually sell the property (hereinafter referred to as the "Property") located at                                                according to an Agreement of Purchase and Sale, a copy of which is hereto attached.

NOW THEREFORE THIS AGREEMENT WITNESSETH THAT:

(1)       SALE. When a qualified appraiser, acceptable to both Parties, determines that the then fair market value of the Property exceeds by 75% (seventy-five percent) the sum of the initial purchase price plus all expenses to the date of closing inclusive of all closing expenses, then either Party may direct in writing to the other that the Property be placed on the market for sale.

 (2)      LIMITATIONS.            This Agreement creates a Joint-Venture to carry out the objectives referred to herein and does not create a partnership between the Parties nor does it authorize either Party to act as agent for the other Party SAVE AND ACCEPT as herein set forth.  Title to the Property shall be registered in the names of the Parties as tenants-in-common.

(3)       CAPITAL CONTRIBUTIONS.          'A' and 'B' shall contribute cash (hereinafter referred to as the "Original Capital") to the Joint-Venture for the down payment and initial working capital such as Property improvements, repairs, maintenance, legal and conveyancing coast and other similar expenses.  Original capital of $             shall be contributed on or before the                    day of           20        by 'B' with a deposit of $             upon signing of this Agreement.  'A' shall contribute the sum of $1.00 of Original Capital upon the signing of this Agreement