REI WEALTH MONTHLY Issue 35 | Page 28

# 16 – Joint Venture
# 17 – Contract­of­Sale
SO MANY WAYS TO BUY ( PART 2 ) BRUCE KELLOGG

# 16 – Joint Venture

A “ joint venture ” is where two parties undertake a project together , such as a “ fix and flip ” of a property . One party usually supplies the funds , while the other supplies the expertise and management . This is often called a “ rich man , poor man partnership ” and is a great way to get started . A “ Joint­Venture Agreement ” describes the arrangement . These can be found on the internet .

# 17 – Contract­of­Sale

The “ Contract­of­Sale ”, also called “ Contract for Deed ”, “ Land Sales Contract ”, or “ Land Contract ” is a method of acquisition that defers the buyer ' s receipt of the deed ( fee ownership ) until all of the contract ' s terms have been fulfilled . Meantime , the purchaserhas what is known as an “ equitable interest ”, an interest under the contract . It is a security device for the seller who is financing the transaction . It ' s a good method for selling to a buyer with a low down payment or weak credit that can be improved over time . Since it is a contract , foreclosure requires an action in court . Additionally , most states have a “ right of redemption ” where the foreclosed party has a certain period of time to pay the arrearage plus costs and recover the property . For a purchaser , it is an easy way to begin ownership of a property . A good practice is to obtain a quitclaim deed and record it if the contract in not fulfilled . This cleans up the title .