Exhibit 10.8
Genesis
Financial, Inc.
REAL ESTATE CONTRACT PURCHASE
JOINT VENTURE AGREEMENT
December 18, 2002
GENESIS FINANCIAL, INC. (GENESIS) has negotiated with [ ] for a loan in
the amount of $190,000 secured by interests in real estate. The loan is also
personally guaranteed by the [ ]. Genesis is interested in funding 50% of the
loan amount or $95,000, and has sought funding for the $95,000 balance of the
loan amount from a joint venture partner.
TEMPORARY FINANCIAL SERVICES, INC. (TFS) has considered the joint
venture proposal and is willing to fund 50% of the loan subject to the terms and
conditions set forth in this Joint Venture Agreement.
It is therefore agreed as follows:
1. TFS will provide funding for the [ ] loan in an amount not to
exceed $95,000 provided the [ ] loan is structured with as
follows:
a. Term. The term of the loan shall not exceed 18 months.
b. Interest Rate. The loan bears interest of 14% per annum plus
TFS will receive 2.5 points for origination (one half of the 5
points designated in the loan documents).
c. The loan is payable interest only for 18 months, and a balloon
payment of the full remaining principal balance is due on June
20, 2004.
d. The loan is secured by a first position in real estate and is
personally guaranteed by the [ ]. GENESIS considers the
collateral adequate for this type of loan.
2. TFS acknowledges that GENESIS will service the loan and will disburse
50% of any payments received on the loan to TFS within seven days of
receipt.
3. TFS agrees that the legal documents reflecting the loan may be prepared
in the name of GENESIS subject to the right of TFS to request, at its
discretion, the recording of an assignment or other appropriate
document to reflect the interest of TFS in the [ ] loan and security.
GENESIS agrees to comply with a request for recording if and when made
by TFS.
4. GENESIS has represented that it will retain the balance of the [ ] loan
for its own account. Should the loan go into default, GENESIS will take
appropriate action to protect the interests of GENESIS and TFS. If the
loan is in default, and the security interests are foreclosed or the
personal guarantees are enforced, the net proceeds of any amounts
collected will be split 50% to GENESIS and 50% to TFS after payment of
reasonable attorney's fees, collection costs, and costs of foreclosure
or enforcement.
Dated this 18th day of December, 2002.
/s/ Xxxx X. Xxxx /s/ Xxxxxxx X. Xxxx
Xxxx X. Xxxx for TFS Xxxxxxx X. Xxxx for GENESIS
