Is a JV better Than an Assignment

[James Lehmann]

Hi, I've done a few wholesales this year and I have another under contract that is a tear down. I've reached out to a few builders, and just so happens I have a guy very interested that does new construction. Long story short, he asked if instead of an assignment fee would I care to stay in the deal and get first cut at the close of the house whenever that may be. He said I will get back the assignment fee plus split the percentage of profit based on how much cash he has to put in vs how much 'cash' I have in the deal. Other than time of course, what do I need for paperwork and/or assurances that I will get paid at the end? Also is this a good idea? Why why not? I would love a complicated answer if you have the time. Big decision for me. Thank you so much as always. Sent from my iPhone