What is a Wholesaler JV Agreement

A JV Agreement (Joint Venture Agreement) is a legal contract between two or more parties who agree to work together on a real estate deal. It outlines how the partners will share responsibilities, profits, and risks, making it an essential tool for collaborative investing.

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Key Elements of a JV Agreement

A solid JV Agreement should clearly define:

• Roles and Responsibilities: Who handles what? From financing to deal-finding, outline each partner’s duties.

• Profit Splits: How will profits be divided? Many JV partners split profits based on contributions or a pre-agreed percentage.

• Duration of the Partnership: Is this for one deal or a long-term venture? Specify the timeline.

• Exit Strategy: What happens if someone wants out? Outline the process for dissolving the JV or buying out a partner’s share.

  
  

Why Use a JV Agreement?

A JV Agreement helps investors pool resources to take on bigger, more lucrative deals. It reduces individual risk and leverages each partner's strengths—whether that’s capital, connections, or market expertise.

For example, if one partner finds distressed properties and another funds the rehab, they can split the profits without shouldering all the risk alone.

Final Thoughts

Using a JV Agreement can be a game-changer for real estate investors looking to scale their business. By clearly defining roles and expectations, you can build strong partnerships, tackle larger projects, and achieve greater success.

Want to learn how to draft your own JV Agreement? Our wholesaling course includes templates, negotiation tips, and real-life examples to guide you every step of the way!

The information in this article are of the opinion and experience of the author. Due diligence should always be done before investing in real estate.