Investment Proposal: Equity Partnership for Luxury Residential "Pop-Top"

Location: Decatur, GA (DeKalb County)

Current Asset Value: ~$1.1 MM with an approximately $800k mortgage

Projected ARV (After Repair Value): ~$1.9 MM Estimated Project Cost: $300k – $400k

1. Project Overview

I am the owner of a residential property in a high-demand Decatur neighborhood. I am seeking an experienced developer or equity partner to execute a vertical expansion ("pop-top") and main-floor structural modernization. This project is designed to capture the significant "spread" between current market value and the ceiling for renovated luxury homes in the immediate area.

2. Scope of Work

• 
  Vertical Expansion: Addition of a full second story to significantly increase square footage.
• Main Floor Optimization: Removal of a primary load-bearing wall to create an open-concept layout, including the installation of a structural support beam.
• High-End Finishing: Modernizing the aesthetic to meet the $1.9M+ neighborhood comp standards.

3. Proposed Business Model (Joint Venture)

I am looking to structure this as a Joint Venture (JV) to minimize debt service and maximize profit for both parties:
Owner Contribution: The property (valued at $1.1M)

Developer Contribution: Capital for construction ($300k–$400k), project management, and execution.

• The Waterfall payout
• 1. 
     Bank First: $800k to clear the mortgage.
  2. 
     Developer Reimbursement: ~$400k (construction)
  3. 
     Owner Basis: The remaining equity we have ($300k).
  4. 
     The Profit: The leftover ~$400k is split according to the agreement.

4. Why This Deal Works

• 
  Reduced Carrying Costs: Unlike a traditional flip, the "purchase" phase is already complete.
• 
  Verified Comps: The $1.9M target is supported by recent sales of a home 4 houses down from the property.
• 
  Streamlined Execution: I have a clear understanding of the structural requirements and the economic roadmap.