A JV Rehab with another BiggerPockets Member - A Success Story!

118 Replies

A BP friendship with @Tom Yung this past summer led to a JV to rehab an Atlanta property Mr. Yung had picked up in a Dekalb County tax foreclosure. The house is located in east Atlanta in the Edgewood neighborhood and was vacant for over a year while the statutory barment process was completed and was vandalized and used as a crack house and a place for homeless to crash. A downside to picking up tax foreclosures is the inability to go inside the house to inspect. The cost to pick up the house, attorney fees, etc was approximately $70,000 and I'm not sure either one of us would've made the investment if we'd seen the inside first! More numbers and after pictures will follow, but I think you'll agree that this one is a doozy!

Updated over 3 years ago

Let me try this link to see if the Before Pictures work: https://www.flickr.com/photos/[email protected]/sets/72157650637401455/

Updated over 3 years ago

Let me try this link to see if the Before Pictures work: https://www.flickr.com/photos/[email protected]/sets/72157650637401455/

Updated over 3 years ago

Let me try this link to see if the Before Pictures work: https://www.flickr.com/photos/[email protected]/sets/72157650637401455/

I give up!  I'm not able to post pictures.  What's the trick?  

I saw your before and after pics on the flickr link. The after looks amazing! Great job. Share more details on the numbers.

@David Begley  Congratulations! The after pics look fantastic! 

@David Begley nice job, looks awesome.

Looks great! 

That looks great David and a full list offer on day 2?!!! Can we say Cinderella story.  Great job.


Wow!  Great job!  Looks like it was quite the project, but came together nicely!

Great job!  Congratulations!!

Amazing work, congrats!

@David Begley  

  Nicely done.. sorry I missed you last trip to 'Atlanta... Its great to see such a vibrant city bouncing back.

Looks amazing!  How long did it take to turn around?

@Jay Hinrichs  Thanks Jay, hopefully we can connect the next time you are in the southeast.  

@Scott Young   The rehab began October 1 and we had a target December 1 completion date that turned into a mid-January due to a few unforeseen delays - permitting and inspections primarily and a few that I should've foreseen and didn't, but hopefully learned some lessons.  Even though the house is only about 1,600SF, the demo took longer than anticipated because of the extent of the vandalism.  We went through 6 of the 40 cubic yard dumpsters and also had to replace the roof, which wasn't in the original budget.   


The after is great but having the before pictures makes it magical. I've seen Tom's magic before. You made a wonderful improvement to that house and neighborhood! Congratulations to you both!

Nice work,  good thing you didn't get inside or you may have had a lost opportunity.  Good job and nice work.  Keep us  posted on the end process.  Good luck and success with a continued relationship.

@Pyrrha Rivers   Thank you, and yes, @Tom Yung is the perfect partner for a JV - extremely knowledgeable and patient with his Jr. partner!

Also, for those that post Forum questions regarding "how to structure a JV", I'll let you know how we handled it - not saying the best or only way, but this arrangement worked for us. We formed a Georgia LLC (the two members are our "parent" LLCs) that outlined each of our responsibilities, contributions, splits, etc in the Operating Agreement and also transferred the property to the LLC ownership. The Operating Agreement included a Dissolution Statement stating that the LLC would be dissolved and assets/liabilities settled upon the sale of the property. Further, we opened a bank account in the LLC name (have to procure an EIN), made equal payments into the account and paid all rehab and carry costs through this account.

@John Moore  Thank you, and I'll provide an update after we close.

@David Begley Thank you for sharing how you structured your JV. As you mentioned, I know it's not the only way, but I think knowing all the steps you took will positively impact newbies to consider JV more partnerships as a possibility knowing this is ONE effective way to go about it. I wonder what structures others have used? and yes, @Tom Yung  is  very generous sharing his knowledge, patient and kind. Not to mention a great teacher. Good on you to work with him!

Nice job on the rehab. I can't believe it is the same place. How much was the tax lien? Was there a mortgage that was wiped out? These situations always make me wonder what was going through people's heads.

Originally posted by NA Onyido:

Awesome! couldn't have been handled any better!

Congratulations @Tom Yung  and @David Begley 

 Thank you. 

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