- Joined
- Aug 30, 2007
- Messages
- 51
With a projected share of the profits yielding a return of 57% on your cash or more like 518% on your borrowed funds, this could be a very easy and painless `Single-Family House` JV purchase deal for you. The property is located in a well-established area in Red Deer with solid fundamentals. There`s even a decent positive cashflow - which varies according to the final rent selected (at $1700/mo = +$130CF) I`ve got a Buyer who wants to buy it from us in 2 to 3 years via a rent-to-own agreement. The `Future Buyer` makes $8K/mo and can`t qualify for another 2 years because he`s just started a new business 4 months ago. The JV is asked to bring the following to the deal: [*]10% down payment ($39,500 - includes closing costs)[*]Qualifies for a mortgage[*]Goes on Mortgage and Title with JV Agreement added via caveat[*]Your Projected Share of the Profits = $22.5K (R.O.I. = 57% or 518% if your investment cash is borrowed money @ 5.5%)[*]Independent Legal Council[*]A Sophisticated Investor Binder or at least having your financials in order to expedite the financing process.I provide:
Thank you very much for your interest.
Outside of your due diligence and getting the financing to start the deal, there isn`t much of anything else you`ll have to do until closing the sale at the end of the Rent-to-Own contract!
Time is of the essence though! I would like to solidify a partner for this deal no later than April 25th.
- The Deal!
- 15% down
- (if a standard 25% down deal - if you can qualify for a lower % down then I`d be happy to invest 75% of the negotiated total down payment
- )
- A Rent-to-Own Buyer
- with a 2-year option-to-purchase lease
- (with the option to extend to a 3-year option
- - want to sell after 3 years for sure!)Take care of all the property management
- and all dealings with the `Rent-to-Owner`Provide the JV agreement
- which we register on titleBring in the Mortgage Broker
- Real Estate expertise from the Red Deer
- area
- Provide the Real Estate team
- (Accountant, Lawyer to handle the Rent-to-own paperwork, Property Management...etc.)Fully renovated upstairs
- and clean, tidy downstairsExit Strategy
- :
2-year hold with an option to go to a 3-year term with a sale to the `Rent-to-Owner` that is brought in.Upon sale, both JV partners receive their invested cash back first then a 50-50 split
- I maintain first-right of refusal on any terms or ideas within the deal.
Thank you very much for your interest.
Outside of your due diligence and getting the financing to start the deal, there isn`t much of anything else you`ll have to do until closing the sale at the end of the Rent-to-Own contract!
Time is of the essence though! I would like to solidify a partner for this deal no later than April 25th.