First attempt at JV flip need feedback

[Dax Smith]

High-ROI Investment Opportunity: 1360 Meadowood Dr, Hixson, TN

1. Introduction

Title: Investment Opportunity: 1360 Meadowood Dr, Hixson, TN - High ROI Potential!

Description:

Hello Everyone,

My name is [Your Name], and I am excited to present a lucrative real estate investment opportunity that promises substantial returns. I am bringing a single-family property located at 1360 Meadowood Dr, Hixson, TN, to the table and seeking a partnership to provide labor, materials, and an upfront investment of $40,000. Below are the details of the property, renovation plans, financial projections, and potential profits. This property has a full unfurnished basement that could be converted into another unit as well with a side entrance.  

2. Property Details

• Address: 1360 Meadowood Dr, Hixson, TN 37343
• Type: Single-Family Home
• Year Built: 1971
• Size: 1,008 sqft + full unfinished basement
• Lot Size: 0.27 acres
• Current Condition: Not updated since 1994
• Roof: New, installed 4 months ago
• Parking: Attached Garage

3. Renovation Plan

Scope of Work:

1. Convert 0.5 Bath to Full Bath
   • Estimated Cost: $7,500
   • Details: Add shower or bathtub, update fixtures, ensure proper plumbing.
2. Add Bedroom in Basement
   • Estimated Cost: $15,000
   • Details: Install egress window, insulate, add walls, flooring, and electrical work.
3. Replace Deck
   • Estimated Cost: $3,000
   • Details: Replace existing 8'x10' deck with new one.
4. General Updates
   • Estimated Cost: $45,000
   • Details: Update kitchen, bathrooms, flooring, paint, fixtures, and necessary repairs.

Total Renovation Costs: $70,500

4. Financial Projections

Current Property Value (As-Is): $180,000

Estimated After-Renovation Value (ARV):

• Low-End ARV: $295,000
• High-End ARV: $320,000

Selling Costs (6%):

• Low-End Selling Costs: $17,700
• High-End Selling Costs: $19,200

Net Sale Proceeds:

• Low-End ARV: $277,300
• High-End ARV: $300,800

5. Profit Distribution

Investor Contribution:

• Labor and Materials: $70,500
• Upfront Cash : $40,000
• Total Investment from Investor: $110,500

Profit Above $180,000:

• Low-End Profit: $97,300
• High-End Profit: $120,800

Profit Split (50/50):

• Investor’s Share of Profit (Low-End): $48,650
• Investor’s Share of Profit (High-End): $60,400

Your Share of Profit:

• Low-End: $48,650
• High-End: $60,400

7. ROI Calculations

Investor’s ROI:

• Low-End: 44.04%
• High-End: 54.67%

MY ROI:

• Low-End: 34.75%
• High-End: 43.14%

8. Highlights and Advantages

• New Roof: Installed 4 months ago.
• Potential to Add Value: Through strategic renovations including adding a full bathroom and bedroom.
• Attractive Market: High demand for updated properties in Hixson, TN.

9. Next Steps

I would love to discuss this opportunity further and answer any questions you may have. Please let me know a convenient time for us to connect.

Thank you for considering this investment opportunity. I look forward to the possibility of working together.

Best regards,

Dax Smith

[Dax Smith]

Thank you for your honest feedback.  All that I truly know, is that I dont know.  Im here to learn and want to acknowledge that I understand your time is valuable and appreciate the feedback.  This is my first attempt at doing anything, as if it wasn't obvious.  The purchase money is %100 equity.  Basically i'm wanting to learn the process of how to maximize return on this property and apply to the next.  I have no experience with a flip and was thinking of using my current situation to start the learning process.  Also was wanting to explore  different funding options but also have no earned income, or experience.   I did not know where to start and was hoping to share some of the profits  in order to learn.  I have gathered that the smartest way forward is to team up with others who possess knowledge and experience that I do not so thats what I am doing here.  Just wanted to say thank you once again for your input

Dax