So here is a deal I am looking at:
Property includes 2 land lots with an existing 5400 square foot building on one lot that I plan to transform into 3 town homes. My expertise is renovation, project management and RE sales and or leasing.
Current asking Price $300K
Renovation Investment $300K
Total Investment $600K
I would bring labour and materials valued at around $150K to the table. So looking for around $450k investment from JV partner.
Conservative Sales Figures:
Selling value of 3 individual townhomes is $250K x 3 or $750K (upside to perhaps $275-$300K)
There would also be an additional lot conservatively valued at $100k
Total sale value after renovation $850K - Profit of $250K
Looking for a 12 month partnership.
My questions:
Is this a decent enough deal to interest a private lender/JV Partner?
How would this deal be structured?
What interest rate and fees could I expect to pay?
Thanks for any help
Tony
Property includes 2 land lots with an existing 5400 square foot building on one lot that I plan to transform into 3 town homes. My expertise is renovation, project management and RE sales and or leasing.
Current asking Price $300K
Renovation Investment $300K
Total Investment $600K
I would bring labour and materials valued at around $150K to the table. So looking for around $450k investment from JV partner.
Conservative Sales Figures:
Selling value of 3 individual townhomes is $250K x 3 or $750K (upside to perhaps $275-$300K)
There would also be an additional lot conservatively valued at $100k
Total sale value after renovation $850K - Profit of $250K
Looking for a 12 month partnership.
My questions:
Is this a decent enough deal to interest a private lender/JV Partner?
How would this deal be structured?
What interest rate and fees could I expect to pay?
Thanks for any help
Tony