Need JV partner for value-add property - 140k profit/23% ROI deal

1 Reply

Have a deal under contract, with a closing date in the next 2 weeks. Numbers below. Looking for a JV partner to fund 100% of the deal for a 50/50 profit split. We are currently doing 15 projects of this type in the area and have this deal along with 3 others under contract. Our current JV partner who has funded our last 5 deals has run out of funds, so we are looking for additional JV partners. Our construction is in house, and we have over 40 subs working for us. Contact me for additional details.

Edgewater, Chicago IL
Purchase price+$360,000
Buying closing costs (1.5%)+$5,400
Rehab budget+$230,000
Utilities & Insurance ($500/m)+$6,000
Taxes (2017)+$6,235
Total into the deal=$607,635
Sales Price (ARV)$800,000
Total into the deal-$607,635
Selling closing costs (1.5%)-$12,000
Brokers commission (6%)-$40,000
Profit (if bought all cash)=$140,365
Deal ROI23.10%

If you're not familiar with Edgewater, it is a hot neighborhood of Chicago, blocks from the Lake and the redline to downtown. There is currently a lack of inventory and I have realtors reaching out to me to have me let them know when we are getting close to finishing so they can bring in clients before the rehab is done. We are working on one in the area now, have this one, and another one under contract. Looking for more deals in this neighborhood.

Matthew Mesick

[email protected]

312-871-9363

The brokers commission is off by $8k.

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