Numbers of a joint venture with sellerThis usually works best when sellers already tried to sell with an agent so it's an expired listingUse a yellow pad and draw three columnsFirst column is selling with an agent and paying the cost to sell 6% commissions, 2% closing costs, 3 to 6% sellers concessions, One to four months P ITI and maintenance if you price a house wrong, Costs to repair to compete with all the other houses in that sales bracketAdd up all those costs and it's usually between 12 to 14% of value of the house---Next column is selling to a real estate investor70% of ARV or after repair value minus repair costs minus wholesalers feeDo that math on their house and see how pissed off the seller guess they see such a ****** offer---The third column is where you do a joint venture with the seller, you can't do this call them unless you know repair costsTake 10% of value and subtracted from after repair value for sales costs, commissions closing costs etc.Subtract repair costs from that figureNow you're probably thinking I don't have the repair costs, well you should be looking for private money as well as looking for motivated sellersGoogle "private lending Brian Gibbons"Let's say you have a private lender money to do the rehabAdd 10% of rehab costs for the private lender for interestThen you need a jv feeI charge 5 to 10% of ARV---When do you try to negotiate a joint venture with the seller?

Private money guy provides the cash in a joint LLC I have formed with him.

A trust is one method, another is joint ownership with rights of survivorship, another is do a Sub S corp and put POD on the shares, etc. 

I would look for something with an entrance already or the possibility to add one at grade and go straight to the basement through a joint hallway.

My brother and sister-in-law live there and we would like to do a joint venture.

Hi @Michael Swan, Awesome story, this is been a recipe for success always, My father was in Land Banking which is a great industry. his model was buy land middle of no where and let the build around in mean time, grow crops and make cash. then Joint Venture with developer let them build houses do the work and make 35% Profits on the project awesome deals. me I bought, places people taught I was crazy why are you doing that is the bad area of Vista, 1 lot with 3 units on it in 2011 for cheap, It cash flowed good I had Section 8 tenant in one unit it was awesome always on time. then 2014 came along, They develop a beautiful track home development near by and 2 senior livings, by now had some more contacts and more money, but with $0 dollars out of my pocket, i partner with a group and we created a Senior Living with 16 beds. we are doing great, property is valued real high, thinking about 1031 for a more sexy asset in for oceanview senior living, that will bring me more revenue. because as Gordon Gekko said Greed is Good. thank you for sharing. 

Perhaps they can provide a joint POF submission to satisfy the seller?

As mindy pointed out, you also need to understand what your finances are, what you can borrow using a mlo or even a hard money loan or bring some friends into a joint venture. all have their own risks/rewards of course so it comes down to your risk tolerance.  

diversify.put some in safe interest paying less that 50% Loan to Value notes and find an experienced investor to Joint venture the remaining for a higher return, which is a little more risky.I invest in Va properties and have done so since 1984. 

It would (should) probably have some sort of joint costs like a HOA, Personally I would not do a deal like this unless i got the entire building.