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Joint Venture in Canada
pawprinter
Posts: 66 Forumite
Hi, I'm totally new and naive in the property world, so wanted to see if anyone could offer me advice.
This EA is offering a joint venture deal for a commercial property in Canada.
I buy a share (there are 19 shares) - I have to pay half of the share...and the other half mortgage (their mortgage). A rent is paid to me quarterly, but they deduct the mortage from the rent and pay me the rest. I have to go with their mortgage, it's one mortage for the whole property. But on questionning their mortgage payments...it seems that 2 thirds of the payment is interest...and the one third is the principal amount. The interest seems a bit high?
I don't own the property...but I own a share equivalent to the value of one property. There are trustees that receive the money.
I'm unsure - and I've already told them. But it seems like a good deal...or is there something I should be aware off?
This EA is offering a joint venture deal for a commercial property in Canada.
I buy a share (there are 19 shares) - I have to pay half of the share...and the other half mortgage (their mortgage). A rent is paid to me quarterly, but they deduct the mortage from the rent and pay me the rest. I have to go with their mortgage, it's one mortage for the whole property. But on questionning their mortgage payments...it seems that 2 thirds of the payment is interest...and the one third is the principal amount. The interest seems a bit high?
I don't own the property...but I own a share equivalent to the value of one property. There are trustees that receive the money.
I'm unsure - and I've already told them. But it seems like a good deal...or is there something I should be aware off?
If you can't amaze them with your intelligence,
confuse them with your b*llsh*t.
confuse them with your b*llsh*t.
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