Advise sought for a possible JV with the builder of my duplex

Colin Forrest

Investing with Integrity
REIN Member
Hi all,
I was very lucky to find a wonderful vacant and sub-divided plot of land in the highly desirable East End of Barrie, Ontario. I am preparing to build a high end duplex on each of these plots. Now that my architectural designs are complete, I have sent the drawing out to 3 interested builders for pricing based on a project management scenario. One of the builders is a bit reluctant to give me specific numbers until I have committed to build with them. I told him that I would need accurate numbers before I could possible decided. More importantly however, I had a very interesting discussion a few days ago with one of the other builders (my guts first choice) and the subject of entering a JV for the build came up. Both sides are interested in the idea; but frankly, I am not sure how this would work. Any ideas or advice on what I need to consider would be most appreciated.
 

Thomas Beyer

Senior Forum Member
REIN Member
Can you qualify for mortgage and do you have the cash ?

A JV might work for resale but it is less profitable for you if you have the cash and can get a 3% mortgage. JVs are always more expensive than borrowing sub 5%. ALWAYS.
 
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Caleb West

Multi Family Commercial|Collaborative Office|
Registered
As a builder having a specification for all things will allow us to price quickly and accurately. We generally use a base price of $180/sq and find that works well for plans, permits, project management. If you'd like I could look over things and give you some insights from Alberta

Caleb@seedbuilders.ca
 

Colin Forrest

Investing with Integrity
REIN Member
Thank you all for your feedback. Problem solved as we now have the necessary funds, as well as a fantastic builder to manage the project.
 
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