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Law Office of Marilyn Sullivan

Joint Venture Shared Ownership updated September 2016

What is Joint Venture Shared Ownership?

Shared Ownership, also known as a Joint Venture, Equity Sharing, Co-Ownership, is a creative way to buy real estate with a partner for optimum profit and tax deductions. The Federal Tax Code authorizes equity sharing, requiring the transaction to be memorialized by a Shared Equity Financing Arrangement Agreement, so this form of ownership is permitted in any state. It takes one property, more than one owner and blends them to maximize profit and tax deductions. At the end of an agreed term they split the equity.

Joint Venture Shared Ownership was formalized by real estate attorney and broker Marilyn Sullivan who has written two books on the subject and has shared the concept on national television, radio and in print. Marilyn is the foremost expert on this popular co-ownership option.She now has a video which appears further down the page and has made her tools available to you to do-it-yourself which you can purchase by clicking here.

What are the Types of Equity Sharing Joint Ownership?

There are three versions:

1. Traditional Transaction. Party 1 (the Investor) provides the down payment while Party 2 (the Occupier) lives in the property and pays its expenses.

2. Co-Occupier Transaction. No Investor; more than one Occupier living in the property.

3. Joint Venture Transaction. No occupier; more than one investor.

Marilyn's 2016 YouTube video below steps you through shared ownership.

What are the Primary Advantages of Shared Ownership?

The Shared Ownership's greatest advantage to the Occupier is to confer home ownership long before s/he could save up a down payment. The Investor's greatest advantage is to earn a portion of the home's appreciation without paying its expenses and exchange out without paying tax, or just pay capital gains tax.

What are the Investor Types in the Traditional Equity Sharing Transaction?

The Investor may wear many hats: a family member, a third party Investor, a seller. In a buyer's market, when sellers are forced to slash prices, the shared ownership seller becomes a marketing magnet when he offers to fund the down payment. From the loan he and the Occupier obtain, the seller cashes out with at least 80% of value and turns the property and its expenses over to the Occupier. The down payment amount left in the property as equity is converted to his investment property. By cashing out and moving on to another property yet continuing to share in the appreciation of his home receiving generous tax breaks, he gets the best of both worlds. Sellers should also look at our pages on Rent to Own which is another strategy you may want to explore.

More on Shared Ownership Joint Ventures:

Visit our Shared Ownership Joint Venture sub-pages in the Navigation Bar to the left for Transaction Samples, Do-It-Yourself Help, Checklists, and much more. We can do it all for your at a low flat fee or you do it yourself with our products which include a Coach to tutor you through setting up the Transaction, an Excel Calculator to figure out the Ownership Split, a Preliminary Commitment for the parties to sign before they buy, and the Agreement itself for each of the three Transaction Types.