OfflineHello DG family! Closing another one, this one is with a JV partner! I am doing all the work, and then renting this one out either regular rental or more preferable rent to own
PP: $95K (lowest bank would go on the short sale)
Closing costs: Approx $2K
Rehab: $6K (for a nice cosmetic rent ready rehab)
ARV: $135K (conservatively 
)
Rents: $1650-1850/mo (easily)
Monthly NET profit to EACH of us as JV partners:
Approx $725/mo ($1450/mo net profits (at $1650/mo))
Plus, we will share the option fee 50/50. Paying my partner a nice return on her investment.
Closing Monday. 
Want to thank my JV partner so much! She rocks!!! 
And want to thank Dean and the DG family for being there for me to goto when naysayers get in the way, which they often do. 
Their are so many Naysayers, need to stay focus and one will reach ones goal!!
Great job
Congrats, keep working and seeking alternate ways. You're doing great. Way to be positive and focused.
Keep up it.
You can never fail if you keep trying.
If you do something everyday that puts you closer to your goals it will never be a wasted day.
Glad someone came through for you on this, so you could move forward. What does your JV agreement look like any chance I could get a peek?
Cathy B
Follow my progress at:
http://www.deangraziosi.com/real-estate-forums/investing-journals/44397/...
Yippee! Glad it worked out!
Karen
"You're never too old to be what you were meant to be!"
www.deangraziosi.com/real-estate-forums/investing-journals/59128/day-for...
"Shining Like a Star & Dancing on Sunshine"
"Shoot for the moon! Even if you fall short, you'll still land among the stars!"
If you don't mind to share more details it would be great. You seem to have done really well on your agreement. These are the details that help us all so much.
I hope I'm not "snatching" the post here, really just hoping to share and learn to work JV's in a great win/win way.
On my 2 JV deals it goes like this:
- I locked up the deals and put up the EMD (modest, $500 on one and $1,000 the other)
- did a side Agent/Principal agreement with my partner
- did an addendum to do a 3rd Party Wire, Partner wired funds to Title
- Quit Claimed the prop to the partner's name c/o my address (no transfer fees, couldn't do an assignment, they were REO's)
- Did a JV agreement:
-- partner puts up ALL the cash (except I still have not asked for my RMD back)
-- I do all the rehab work up to our agreed upon budget (extensive, 18K on one and 60K on the other) in the agreed upon time. He pays for repairs, but AGAIN I have not asked him for money and my rehab is footing the costs so far
-- I handle the utilities and insurance (which I haven't asked for reimbursements for yet either, but I kept the escrow overages, so that paid for these costs so far)
-- partner has first right to KEEP the prop after rehab
-- we split the profits 50/50 (I told partner that one of my other partners (my PMI Coach Ryan -) ) said I SHOULD be getting a higher percentage...
== IF partner decides to keep the property, we will get offers on the house and determine a real current value and he will buy me out, OR if I want to I can stay in and he will send me 20% of the rent every month off the top and I would not be responsible for any costs
-- he also has 8% flat interest coming (to make him feel better). It's only like $200 bucks, so I said ok.
BTW, these are houses I got at $25K and $26K. ARV's are $69K and $135K respectively.
I'm okay with whatever, as I am usually eager to please (a flaw at times ; )
but at the same time I want to be a good member of the wholesale community and make sure I'm doing my part in keeping our standards as high as they should be.
Does that make sense?
Tammy, would you mind if anyone jumped in here and offered up some JV / sweat equity deal details, and critiqued ours?
Please lmk if this was NOT okay to post here on your deal! (eeek)
Thank you.
Never, Never, Never Quit, N3Q
"Nothing happens until you place an offer."
"Skip Deal #1, go straight to Deal #2; it's so much easier."
"There is nothing so useless as doing efficiently that which should not be done at all." — Peter F. Drucker... so, "Don't sweat the small stuff." -R.Carlson. "The greatest mistake you can make in life is to be continually fearing you will make one."~E.Hubbard, The Note Book, 1927...so, Do it for the right reason and "Do it with a headache!" - Dean Graziosi, Weekly Wisdom #176
way to go Tammy keep up the good work.
Steve.
Steve and Veronica
Steve and Veronica's Journal.
http://www.deangraziosi.com/real-estate-forums/investing-journals/58073/...
http://www.deangraziosi.com/real-estate-forums/totally-fulfilled/72344/d...
Tammy you can tell that this deal worked out great for u and sounds like great rental income congratulations and good luck (: thanks for sharing your success it keeps us beginners motivated!
Robert.
yesterday is history, tomorrow is a mystery, but today is a gift. That is why it is called the "present."
"Be not afraid of growing slowly; be afraid only of standing still"
Raymond, naysayers do their best to steal your dreams and take focus off anything good. Do you know the 'reward' I got from my nayayer... no, not a 'congratulations' or 'you did great', or 'good job'. I've gotten stabbed with put downs, criticisms, and constant verbal attacks on who I am and who my character is, and how I am not doing things his way. I have literally been brought down over 250 times since he found out I was going to actually close this deal, because he told me all along I would never be able to do it. PSYCHE!!!!
Does it get under my skin? YES! Does it hurt? YES! Does it make me feel horrible? YES! Some people can not handle someone being happy and succeeding, it makes them want to focus 100% on everything negative they can think of, and this is my major struggle; dealing with and overcoming this. Its constant and never ending.
But you know what? Just like what Dean said in his blog this week (#177). I'm putting my oxygen mask on FIRST! I can not let those things determine my outcome. My reasons WHY are bigger and overpowers ALL this negativity. And, I refuse to let go or let the naysayers get the best of me.
Go out and make it happen and PLOW ALL THE OBSTACLES OUT OF YOUR PATH!!! They can NOT hold you if you don't let them!
It is CERTAIN we will SUCCEED!
Great job
Thank you Jason! Its all about never stopping and just keeping the momentum going. Just Monday I was down because I couldn't see the end, and I did a 180 degree on the thinking that all my efforts on this deal were for nothing, and decided instead to think POSITIVE and smile despite things looking like they were going to go the other way. I am so grateful for so much which is why I can NO LONGER spend time on the negativity and things that are in place to bring me down. I will not be put down, and I will not allow someone to steal my enthusiasm and thunder!
NEVER GIVE UP!
(Well, I tried to update the property sheet with pics, but the site is having some technical difficulties, so I will try again later.
)
Keep up it.
Hey Cathy,
I can send you a copy of it; but it is a mixture of several agreements and then it was customized specifically towards the deal. I'm not sure if I have your email address, but if you PM it to me I'll send a copy your way.
Lots of blood sweat and tears in it. 
Its very thorough, but not overly intimidating.
You would think that people who love and care about you would give you support and encouragement! It's tough as it is and you don't need another obstable to hurdle!! Congrats on hanging in there and keep up the GREAT work
Raymond
congrats on seeing this deal through and getting it done. that persistence always pays off for you.
Linda, Army EOD Mom
you can follow my journal at http://www.deangraziosi.com/real-estate-forums/investing-journals/45351/...
IT'S ALL GOOD AND EVERYTHING IS WORKING OUT PERFECTLY FOR ME!
Fear equals:
False
Evidence
Appearing
Real
Nice job and I am always impressed by your creative ways in which you do your deals! Keep up the the great work!
Ryan
I am so stoked about it, especially after walking through it again on Friday.
I have such vivid spacial perception and vision, that I can already see it fixed up and beautiful! I had a neighbor ask me already if we will be renting it out. 
Karen
Wow, that's an interesting way you have it set up. This was my first JV deal that I set up; although I do JV with another DGer, on that one he set everything up. This one I set everything up as far as the agreement, and my goal is to refi out of it after the rehab to free up her money. I am funding the rehab and acting as the property manager, and basically am responsible for all the work. The return will depend on the rents received, at $1650/mo, that would be a 17.6% return (FLAT RATE) for my JV partner.
I hope I'm not "snatching" the post here, really just hoping to share and learn to work JV's in a great win/win way.
On my 2 JV deals it goes like this:
- I locked up the deals and put up the EMD (modest, $500 on one and $1,000 the other)
- did a side Agent/Principal agreement with my partner
- did an addendum to do a 3rd Party Wire, Partner wired funds to Title
- Quit Claimed the prop to the partner's name c/o my address (no transfer fees, couldn't do an assignment, they were REO's)
- Did a JV agreement:
-- partner puts up ALL the cash (except I still have not asked for my RMD back)
-- I do all the rehab work up to our agreed upon budget (extensive, 18K on one and 60K on the other) in the agreed upon time. He pays for repairs, but AGAIN I have not asked him for money and my rehab is footing the costs so far
-- I handle the utilities and insurance (which I haven't asked for reimbursements for yet either, but I kept the escrow overages, so that paid for these costs so far)
-- partner has first right to KEEP the prop after rehab
-- we split the profits 50/50 (I told partner that one of my other partners (my PMI Coach Ryan -) ) said I SHOULD be getting a higher percentage...
== IF partner decides to keep the property, we will get offers on the house and determine a real current value and he will buy me out, OR if I want to I can stay in and he will send me 20% of the rent every month off the top and I would not be responsible for any costs
-- he also has 8% flat interest coming (to make him feel better). It's only like $200 bucks, so I said ok.
BTW, these are houses I got at $25K and $26K. ARV's are $69K and $135K respectively.
I'm okay with whatever, as I am usually eager to please (a flaw at times ; )
but at the same time I want to be a good member of the wholesale community and make sure I'm doing my part in keeping our standards as high as they should be.
Does that make sense?
Tammy, would you mind if anyone jumped in here and offered up some JV / sweat equity deal details, and critiqued ours?
Please lmk if this was NOT okay to post here on your deal! (eeek)
Thank you.
Nice to see you visiting my thread
I appreciate the congrats. How're your out of state rehabs coming along, or are they all done already?
Thank you Robert! Hope to see you posting a deal sometime in the near future! KEep at it and never give up. I failed at least 20 times again, before succeeding.
Keep on keeping on!
~Tammy
It is CERTAIN we will SUCCEED!
Robert.
It is all about taking action and that is exactly what you did, so happy for you and your partner.
Sandra
"You can never get to the top, if you are not willing to climb. Do not look at the difficulty of the climb, only anticipate the view from the top."
"Can't even walk without you holding my hand." (Song)
"Is anything too hard for the Lord ..." Genesis 19:14
"In all things, wait on the Lord."
"Think not of your own deliverance, but trust in God who will give in abundance."
"When you are down to nothing, God is up to something." Unknown
"Our lives begin to end, the day we become silent about those things that really matters." Dr. Martin Luther King Jr.
Tammy--that's awesome! I will be calling you soon!
-Teresa
Teresa
College Station, TX
**********************************************************************************
"Declare that you will prosper despite every difficulty that may come your way. Don't just survive; thrive!"
-Joel Osteen
Thank you Linda. The seller is dragging their feet on getting some information to us, so the closing was delayed; we will be closing tomorrow.
But, seeing it through was key; persistence pays!
Thank you Ryan! Creativity and mindset are key! We CLOSED finally yesterday! The seller did not/would not turn on the utilities because they owed so much to them, so they had to write a letter about what was and wasn't working. I turned on the electric and they wrote a letter for the gas and water items. They dragged their feet, so delayed closing. But, it is now COMPLETE.
Ryan
Way to go--
- Tina
Never, Never, Never Quit, N3Q
"Nothing happens until you place an offer."
"Skip Deal #1, go straight to Deal #2; it's so much easier."
"There is nothing so useless as doing efficiently that which should not be done at all." — Peter F. Drucker... so, "Don't sweat the small stuff." -R.Carlson. "The greatest mistake you can make in life is to be continually fearing you will make one."~E.Hubbard, The Note Book, 1927...so, Do it for the right reason and "Do it with a headache!" - Dean Graziosi, Weekly Wisdom #176
On to the next one and keep up the good work.
Thank you Sandra! I have a story behind this deal too, its on both my journal and Jen Gray's post here: http://www.deangraziosi.com/real-estate-forums/everything-else/106657/gr...
I'm going to leave it there instead of posting it here or directing people to my journal, because that is an AWESOME post by Jen all DGers need to read!
Sandra
Thank you! If I don't answer its because things are pretty crazy right about now
So, best to call me beginning of next week. I am SO glad you read TOTALLY FULFILLED! One of Dean's BEST books that has nothing and everything to do with real estate! 
I totally understand about things being crazy...no worries. I'll call you either tonight or tomorrow night. Thanks.
Teresa
College Station, TX
**********************************************************************************
"Declare that you will prosper despite every difficulty that may come your way. Don't just survive; thrive!"
-Joel Osteen