It’s crucial to have a detailed discussion with the builder to clearly outline what’s included in the "cost" and what isn’t.

The following steps outline a practical approach to sponsor underwriting:Sourcing of the SponsorIdentify potential sponsors through various channels such as websites, referrals, and industry events (There are about 6,000 Funds and Sponsors in the USA).

Here's the general outline for them:Renovation loan programs can finance the purchase and renovation of a home in one loan.

Some terms you may find helpful:Repayment Schedule: Clearly outline the payment schedule (monthly, quarterly, etc.).Balloon Payment: If applicable, specify the amount and due date of any balloon payment.Prepayment Penalty: State if there’s a penalty for paying off the loan early.Default Terms: Clearly define what constitutes a default and the consequences, such as foreclosure procedures.Insurance Requirements: Ensure the buyer maintains property insurance.Maintenance Responsibilities: Clarify that the buyer is responsible for property maintenance and repairs.I hope this helps you out, have a great day!

You should have a separate partnership agreement to outline rights and responsibilities.

Legal Issues: Disputes between buyers and sellers can arise, leading to potential legal complications.Important Considerations: Contract Terms: It's crucial to have a well-drafted land contract that clearly outlines the rights and obligations of both parties.

Perhaps you are excellent at all four roles I outlined.

I outline all the requirements and expectations as to who is responsible for what.

The borrower outlines there plan and dates and it is set up with the LOE in the file but in most cases where the bank holds the paper/loan its sent to the credit committee for the final approval and we close. 

Before we entered into the JV, I outlined my strategy, which was to continue investing at the completion of every project with hopes of a new JV every 3-4 months.