Posted almost 5 years ago

A BiggerPockets $635,000 Joint Venture

www.HoltonWisePropertyGroup.com

For those of you who have been following me here on Bigger Pockets I'm sure you remember the $625,000 Joint Venture I blogged about a few months ago. If not please take a look at it Here

We recently closed on another deal pretty similar to that one.

THE BUILDING

This 21 unit apartment building is located on the west side of Cleveland Ohio.

Normal 1420213458 4708 Pearl Rd Front Of Building

  • 9-2 bedroom units
  • 12-1 bedroom units.
  • 2 separate coin operated laundry rooms.
  • Located on a main road right near the Parma/Old Brooklyn border.
  • Storage Shed


THE NUMBERS

Price $635,000.

The building brings in an average rental income of $10,895 per month.

We have a central boiler system so we are paying for water & heat. I expect this building to produce us an annual net return just over 10%.


THE PARTNERSHIP

We had partnered with a Bigger Pockets member. He put up $5,000 EM. Myself & my partner John(G.C.) performed inspections on the building. Everything was a go. Terms, splits etc.


THE ROADBLOCK 

Our partner had to pull out of the deal due another deal he was involved in. I spoke with my sellers & explained that one of my partners would be unable to complete the deal & at this point the deal is dead. I asked the sellers for a couple days to piece it back together. The sellers agreed to give me two days to put the deal back together before putting it back onto the open market. 


THE FIX

I presented the deal to one of my biggest partners/clients @Chi Cheung We had met Chi on Bigger Pockets last year & have been busy building him a sizable rental portfolio in Cleveland consisting of single family homes, duplexes, & a small commercial complex. (Perhaps that's a blog for another day) I did blog about one of our first deals with him Here

Chi was interested in the deal. We were back on.


THE NUMBERS

 We ended up doing a 3 way split. HWPG taking 1/3 ownership, Chi taking 1/3 ownership & a friend of Chi's (Wing) who had came out to Cleveland with him last year took the other 1/3.

All three parties split cash flow/profits into equal 3rd's.

HWPG performs all property management duties at it's own cost.

Repair costs are split evenly between the owners & performed by HWPG

We assumed the mortgage of the sellers.

The remaining $134,627.11 was paid in cash at closing as follows.

Chi-$61,928.47

Wing-$61,928.47

HWPG-$10,770.17 & $12,245.00 After closing.

Normal 1420220179 Hwpg Logo Black

www.HoltonWisePropertyGroup.com

Passive cashflow. Have helped many Biggerpockets members invest in Cleveland Ohio Real Estate.

Can work with you in several ways.

-Rental Properties from the MLS-

-Turnkey Properties-

-Joint Ventures-

-Secured Loans-24-84 month terms. We pay up to 12% APR-



Comments (18)

  1. Or secured loans.

    1. Thanks for reaching out Tom Kelly. We will be in touch shortly.


    2. Tom what is your email address?


  2. Or secured loans.

  3. @James Wise, I would be willing to look at some JV's as well.

    Thanks Tom


  4. interested in JV's as well....I believe Im on your email list.


  5. Thanks for connecting @Carrie Giordano Either me or one of my agents will contact you shortly to discuss possibly working together.


  6. @James Wise Hey James, I would be interested in Jv's in the Cleveland area. Would love to hear more about what you have going on!


  7. @James Wise Congratulations! Thanks for sharing your success story. 


  8. Interested in learning more about your joint ventures on the right opportunities on multifamily (10+).


  9. @Tom Ziebro 

    Sounds like a plan to me. Contact me to set it up.


  10. @James Wise, I would be interested in talking to you about some JV's. I am currently looking at properties in CLE near Old Brooklyn and Fairview Hospital area (North of Puritas and away from the flight paths of the airport). 

    Maybe we could meet up the next time I am in CLE to look at homes?

    tom


  11. Thanks Marc.

  12. Thanks Marc.

  13. Thanks Marc.

  14. Thanks Jeanette.


  15. Good write-up.


  16. So great you posted this success story! Especially the financial breakdown.

    Jeanette Adler