Contribution amounts vary depending on how we structure the deal. Often times, no money is necessary. Other times, a prospective Joint Venture Partner may need to put up some percentage of the required capital contribution.
How much capital will I have to contribute to the venture?
How is debt treated in the venture?
If there is a debt component, and it necessary to benefit the venture, you would be asked to be an identified Borrower of funds under a standard Deed of Trust and Promissory Note, and a personal debt guarantee would be required.
How does the company determine the amount of capital it will require me to contribute?
MXM Ventures, Inc. evaluates capital contribution requirements on a risk-reward analysis of the venture. If the opportunity you are offering us provides an exceptional return with minimal risk, our requirement for you to contribute capital will be less than a venture that is likely to produce a lower return with higher risk.
How are the terms of the venture memorialized?
MXM Ventures, Inc. has one of the most experienced legal teams in the real estate industry with over 50 years of real estate experience. MXM Ventues, Inc. will use a customized Joint Venture Agreement that we will prepare and forward for your signature AFTER we have agreed to the terms of the Venture in a Letter of Intent and Term Sheet. We do not release our internal legaldocuments prior to an agreement being reached to guard against our forms being plagiarized.
What is a typical exit stratedgy for the venture?
MXM Ventures, Inc. prefers ventures that will provide an exit within 6-12 months after closing.
How do you treat assets that may be involved in a Bankruptcy or legal action?
MXM Ventures, Inc. has an in-depth experience with acquiring and financing assets that are involved with various sections of the bankruptcy code as well as properties who’s title might be clouded by complex legal actions. We welcome submission of assets which may be difficult to obtain and they should be submitted as is any other proposed deal.