Module 06
Three partners. Three different contributions.
A joint venture is not one person doing everything. Each partner brings something the others can't, and the structure should make that explicit.
The organizational picture
The Joint Venture
Financing partner
WMac / 1301 Carpe Diem
- Financing strategy
- Equipment ownership (subject to lender approval)
- Financial oversight
- Lender relationships
- Investment reporting
Local execution partner
Mike / Houston
- Equipment sourcing
- Seller negotiations
- Independent inspection coordination
- Truck delivery & local asset oversight
Trucking operations partner
Rocky / Operations
- Hauling customer relationships
- Dispatch
- Drivers
- Trucking operations
- Regulatory compliance
- Settlement reporting
How a possible equipment lease could work
- 11301 finances and owns a truck, subject to lender approval.
- 2Rocky's carrier leases the truck under an appropriate written agreement.
- 3Rocky's carrier performs the hauling services.
- 4The operating company pays a contractual equipment rental to 1301.
- 51301 uses that income to pay its lender, cover assigned expenses and maintain reserves.
- 6Any remaining cash is handled according to the agreed arrangements.
Trucking revenue earned by Rocky is NOT automatically 1301's revenue. 1301's income is what the lease agreement actually pays it — no more.
A three-way JV does NOT automatically give Mike or Rocky ownership of 1301 or its preexisting assets. Ownership and contribution are separate questions.
Three selectable business structures
1301 owns and leases a truck to Rocky's carrier for a fixed rental.
Advantages
- Simplest to document and administer.
- Clear separation of equipment income from operations income.
- Easier lender story — asset secures the loan.
Disadvantages
- 1301's upside is capped at the lease rate.
- No share in Rocky's operating growth.
- Lease rate must be defensible to a lender.
Requires legal & lender approval
- Lender consent to lease financed equipment
- Written equipment lease agreement
- Insurance & indemnity terms
No structure here is finalized. Each requires legal, lender and partner approval before anything is signed.
Ownership and contribution are separate questions — neither is assumed.