All Forum Posts by: Jesse Blaine

Are you paying the GC full rehab cost and giving him 30% of profit?  If so I don’t think that’s a good deal.  

If he wants a profit split I would have him do the rehab at cost and then do a split.

Better yet, have him put some money in or pay for part of the renovation and the do a 50/50.

The way you describe it, he doesn’t have any skin in the game other than losing his bonus money.

There are many ways to structure the JV. Also JVs in general are sticky in legal terms. They work great if both parties perform, but are hard to enforce if one party breaches.

We've had them work out, but only because there was a lot of mutual trust.

I'm an experienced investor looking for recommendations on GCs or contractor-type folks in the Denver Metro for rehab / value-add projects.

I would be open to both fee based and partnership arrangements. 

My experience is in identifying, financing, and positioning/marketing projects.  I prefer to work with strong contractor to handle the subs, etc.

Any good recommendations?

Looking for wholesalers in Denver, Aurora, Centennial, etc. area.  Anyone active and putting out regular deals outside of New Western?

Thanks @Matt M., @Blake Mitchell, and @James Carlson -- Super helpful information.  I was thinking $20k-$28k depending on the variable so this lines up.  Appreciate it!

Curious what kind of ballpark budget for turning a basement into a mini-apartment.

The highest cost would likely be the bathroom (cheaper if you could locate under existing to just pull down plumbing) and small kitchen.

1000-1200 sqft. Mid-level finishes, one-bed room, living room, bathroom, and small kitchen.

I have ideas of what it was...but not in touch with current labor and material costs.

Curious what kind of ballpark budget for turning a basement into a mini-apartment.  

The highest cost would likely be the bathroom (cheaper if you could locate under existing to just pull down plumbing) and small kitchen.  

1000-1200 sqft.   Mid-level finishes, one-bed room, living room, bathroom, and small kitchen.   

I have ideas of what it was...but not in touch with current labor and material costs.

We have a few vacant lots in Lehigh Acres and Alva.   I wanted to see if anyone could give me rough estimates on $/sqft. to build new single family houses in that area.

Single level, 1500-1700 sqft, block, both budget and midgrade finish out options.

Up in TN we saw builders costs go from $70'ish a few years ago to over $85/sqft. now.  What does it look like in Western FL?

Thank you for the response @Ashish Acharya

We have several investors interested in doing a JV fix and flip with our team. These would be simple one off projects and so it doesn't seem like the right project to form a complete LLC with operating agreement as we would for a larger project.

With the arrangement, they provide the funds we source, manage, and dispose of the asset. We can have them sign a JV agreement, but wanted to know if there was another way to help secure their money that you all have used.

We thought about putting them on title directly with us, but didn't know if that affect how we could get financing from a hard money lender or bank.

We could, (I guess??) record a second mortgage in their name with the closing company, but again might affect our ability to get financing.

The other thought would be a profit share promissory note.

Any thoughts//experiences?

**I'm not asking for legal advice, more of what you've done in the past. We will consult a lawyer before finishing.

We have several investors interested in doing a JV fix and flip with our team. These would be simple one off projects and so it doesn't seem like the right project to form a complete LLC with operating agreement as we would for a larger project.

With the arrangement, they provide the funds we source, manage, and dispose of the asset. We can have them sign a JV agreement, but wanted to know if there was another way to help secure their money that you all have used.

We thought about putting them on title directly with us, but didn't know if that affect how we could get financing from a hard money lender or bank.

We could, (I guess??) record a second mortgage in their name with the closing company, but again might affect our ability to get financing.  

The other thought would be a profit share promissory note.  

Any thoughts//experiences?

**I'm not asking for legal advice, more of what you've done in the past.  We will consult a lawyer before finishing.