JV on my first multi fam

[Monica Litster]

I am getting ready to discuss a JV with someone. I am doing my first multi fam; he has many units. My original thought was to just work with him as a private money lender, where he brings the 20% down to the table, two years or less, interest only to allow a bank refi after a year. But I know there is a lot to learn. Is JVing the way to go? Then does he still bring the funds and we split the whole thing since I am bringing the deal to the table? How does this get set up and what would/could it look like? An LLC?

Thank you

[Travis Hewlett]

Hey @Monica Litster,

I am in the process of closing on a property with a financial Joint Venture partner. I brought him the deal, will handle the property management, accounting, manage the reno's, etc. He is financing the mortgage, providing the 20% down payment, and the $120k renovation budget. We are planning to re-finance after 6 months, and hopefully be able to pull all of the original investment. We are splitting the cashflow 50/50, and after his initial investment is paid back the equity split will be 60/40, 60% to the financial partner. This is the first JV for both of us, that is why the split is 60/40. I wanted to get one under my belt and will hopefully get 50/50 on the next one. We have a legal JV agreement, but have not started an LLC. It's a little different in Canada, but we may look into rolling this property and the next one into a LLC. I hope it goes well!

Travis