Investor · Redondo Beach, CA · Member since 2015 · 25 posts · 6 votes
We received a phone call from a letter we sent to a distressed property, the owner would like to joint venture with us to fix up and sell the property. The owner went to his attorney and the attorney advise to have us put the deal in writing. Does anyone have experience putting together written proposals. Looking for a little advice so we can come across professional and the real deal. Need help on the best structure.
I assume you are doing the work, so what construction experience do you have? Next, is a contractor's license required, most likely will be if you're not i title.
To solve the issues, use a tenants in common transaction, a TIC with a TIC Agreement. Step one is to buy an interest as an owner, that interest can be seller financed and may or may not be secured by the property, this is in your TIC Agreement.
As a contractor, start with a scope of work statement, materials, labor and expenses (permits, trash, etc).
State the partnership arrangement, who is responsible for what, when and time lines.
You need to state a purchase price, in whole or for any partial interest.
Your estimated sale price and how offers will be accepted (generally at appraised value can be agreed to). Is the property to be listed? By who, when?
Who pays existing liens, mortgages, taxes and insurance?
Not knowing what your deal is, it's hard to say, there is no set form, it's more like a business plan. Begin by identifying all the parties, address of the subject property, legal description attached, then move into what your agreement is to be and then address the points above, Good luck
PS. Better check on any license requirements, in a TIC you probably won't need a license, as you can do whatever an owner is allowed to do. :)