#4 Managing Your Property Contributor
- Real Estate Broker
- New Brunswick, NJ
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JV with no money down (how would you do it?)
#4 Managing Your Property Contributor
- Real Estate Broker
- New Brunswick, NJ
Given my track record with student rentals I have recently been approached by an investor with lots of cash to do a JV in this niche. He would provide the cash for a down payment on a mortgage, cash for closing and any rehab that is required on property I find with a great ROI. I would have no cash in the deal. My value add is that I know the market insanely well, find the deals, manage the rehab, manage the property, increase the rents and force the appreciation. The hook: I would be signing the loan though, not the investor (we would LLC) which I don't have an issue with.
What do some of you think is a fair equity split and a fair split of the profits in a scenario like this? I have some numbers in mind but curious what other savy investors think.