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.
