OfflineI am looking for JV partners for 2-5 yr terms who are interested in working with me.
The ideal JV would be someone who can bring the funds to cover purchase, rehab, expenses for the properties I have in exchange for a 50/50 split of all cash flow after expenses and 50/50 split of the equity. It would be a 2-5 yr JV agreement and at the end of the term the property can be sold or JV's equity bought out.
For example:
As the Catalyst (Investor) I have the deals and the JV brings the funds to complete the purchase, profits and equity are split 50/50.
Say the house is worth 100,000 - I have it under contract for 35,000 and it needs 15,000 in rehab. The JV is all in for 50,000. Todays value is 100,000 - in 5 yrs it would be worth more, but today's value will work for the example.
So the house is rented for $750 a month
Taxes and insurance are $180 a month so net cash flow is $570.
Both the JV and the Investor get $285 a month so after 5 years
we each get $17,100 in income and we sell the house at 100,000 and each make 25,000 off the sale.
Total profit is $42,100 each - the cash on cash return is a little over 84% for the JV plus the JV got the initial 50,000 back too.
Please let me know if anyone is interested in being a JV
Rbailey i do not see where this deal makes sense for the jv partner? It sounds to me like your wholesaling and asking the person bringing the cash (investor buyer or jv partner) to let you receive in on their profits when they can just resell at 80,000 and make a profit now? I may be new but something seems off please correct me if I miss read this
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I am asking for a JV partner, to co own a property with me, the numbers above are examples numbers and the thing is I would have the contracts - not wholesaling them (they are HUD so you can't assign them anyway)
I have a lender to do the purchase loan for me, but I am looking for someone who can bring small funds to the deal, so we would be co owners split the monthly income 50/50 and split the equity, 2-5 years down the road, or longer - and there are plenty of people doing deals like these out there, maybe someone has bad credit or doesn't know how to get it done or maybe they want the return on their money but don't want the hassle of dealing with the properties and tenants. I am basically asking for a silent partner to bring funds needed to complete the deal and get a nice return in exchange.