How to structure JV deals (Profit and Loss)

[Shiv Dutta]

Hello Everyone, 

I am new in the world of JVs. currently I own few properties but with my own money. which runs out quickly. 

I am wondering do you use any tool (like DealCheck) to find out how much a prospective JV will make from the deal (cashflow, or after sale profit). so that I can approach people with those details. I created my own Excel (for giving a rough number for JV). and how do you share the income and expense and profits.

I understand, with experienced investors with more properties, its different ball game. I have a deal in Saint John (an accepted offer), I can go over the numbers to get a real example. or if someone has existing numbers to share with me.

Any guidance will be appreciated.

thanks

Shiv

[Huong Luu]

Here are my suggestions, make your presentation simple and easy to understand, and then invite them to a 2nd presentation or call to get more info. Make sure your investors are accredited unless you are setting up the JV in a different way. Present high level # with the cashflow, mortgage paydown and anticipated appreciation. Show the total ROI the investor can make and tell them what kind of splits, what makes this investment different from others, etc. I have a few presentations I can share with you. With whatever spreadsheet you use, make sure you can explain and navigate it. If you use someone else's spreadsheet and have trouble explain the numbers, it puts your expertise into question. Good luck.