Joint Venture

[Tony Cavalli]

Shout out to @Brian Gibbons Gibbons he just took 30 minutes out of his day to call me and totally blow my mind with a strategy called a joint venture. Talk about awesome! I've never really heard of it before today. So I wanted to share both this technique and how awesome Brian is. 

Here is what it looks like with a possible seller I have lined up. 

ARV $900,000-$910,000

Current Value $790,000-$800,000

Owner owes $461,000

Seller agrees to a Joint Venture and listing agreement (I'm an agent) to get her house in fantastic condition for a top price sale on the MLS

I will come in and fix the property for lets say $30,000 from private money

Put a $30,000 lien + fee (matching private money cost) on the house to be paid at closing. 

How I would make money..

$10,000 Joint Venture fee 

Plus listing commission upon sale.

Heres how it looks

900,000-30,000-10,000-72000(closing costs estimated at 8%)=$788,000-461000 owed=$327,000net+waiting 1 month-2months. 

if sold as is sellers net would look like this.

790,000-63,200(closing costs estimated at 8%)=$726,800-461,000 owed= $265,800net+waiting 6  possibly more months to sell. 

Which would you choose as a seller? 

Thanks again Brian, fantastic stuff.