JV with Property Owner Fix and Flip - Input Please!!

[Account Closed]

Hello Fellow BPers, 

I'm considering doing a JV Flip deal with a property owner. I've been advised that it is possible, and they would simply add me to the Title via quit claim deed. I also plan to form an LLC between myself and the homeowner(s). There will be no acquisition cost for the property as they own it free and clear, but I plan to secure an HML to complete the rehab. I will have total control/responsibility of the actual rehab, as they are not investors. We will split the profits (haven't negotiated exact percentage as of yet).

I welcome any input from those of you who have  successfully and/or unsuccessfully completed these type projects.  What were some obstacles? How did you structure the split?  Any suggestions on specifics that I should be sure to address in the negotiation and subsequent contract? 

Also, any asset based HML's funding this type project in Atlanta, feel free to connect.

Thanks in advance for your input and advice...

Happy Investing!! 

[Zach Mitchell]

There is someone on here who has done this, can't remember name but I was considering it in the past and came across those posts.

One big thing is that it would have all been cash. Is the property owner okay with you putting up THEIR house to secure a HML for the rehab? They must not be too knowledgeable about any of this or I don't see why they would do that. They could just get the HML on their own, hire a GC to run the entire project and keep all profits.

The benefit to the homeowner in a situation like this is the experience and cash brought to the table by you for the rehab, not someone putting up their house as collateral to get funds.