All Forum Posts by: Alesandro Breguez

@Antonio Chelala, @Eliott Elias, im not an attorney but based on my limited experience here a few insights and thoughts:

1. JV formation: you dont need necessarily a LLC, you can form a JV partnership for each specific deal. The downside risks of the shared LLC is that you will be exposed to the liabilities of your partner, so it's important to know well the other party.

2. Financing: this connects to (1) above, is the shared LLC is taking the loan, both will be grantors and liable for the default. This might put you in a risky situation. Some JV regulates that the funding partner hold the mortgage and title.

I know this is an old post, but I have been working on a joint venture agreement. Feel free to connect in case you want to exchange

@Brett Sprau, you are on the right platform for real estate!

I have a portfolio of units in the Scranton/WB area as well as in the Poconos. Due to my time restriction with other ventures, ive been exploring JV opportunities in real estate. Glad to connect and exchange

thanks @Kate Daye Ruane! just sent you an email

@Sarah Kensinger, the conflict of interest in hiring a company to do it as they wouldn't care about the profitability of the deal. Thats the reason that profit-sharing partnerships provide an incentive for the operating partner to stay within budget and timelines

Thanks @Account Closed, what is the typical split structure you are used to?

Let's assume the funding partner brings all capital (downpayment, financing costs, rehab materials) while operations partner the work (rehab including labor, property management etc)

Does anyone have experience with structuring a joint venture or partnership in the Poconos area?

Context: I am an investor with a portfolio of STRs in the Poconos but I can’t run the daily management of rehabs and property management. I wonder what your experience is with partnerships where one party brings the capital to the table and the other party the work/time. Looking forward to hearing about your experience, pros and cons.

Does anyone have experience with structuring a joint venture or partnership in the Scranton/WB area?

Context: I am an investor who struggles with the day-to-day management of rehabs and property management. I wonder what your experience is with partnerships where one party brings the capital to the table and the other party the work/time. Looking forward to hearing about your experience, pros and cons.

@Nitin Mathew, I have a portfolio of units in the Poconos and I have seen different dynamics lately. In 2020-2021 any average STR owner made money, now the competition is much tighter, and properties professionally managed with outstanding amenities are winning but based on my network the average STR owner is making a very low margin or maybe breaking even for a lot of work and headache. I would carefully conduct a due diligence prior to jumping in

@Hannah Rodriguez, some local community banks offer 100% financing with a cross-collateralized loan. 

If you have a portfolio with some equity, you can take loans and collateralize the portfolio. Instead of securing the loan with just one property, the lender combines the value of multiple properties to mitigate their risk. If the borrower defaults on the loan, the lender has the right to foreclose on any or all of the properties used as collateral. 

Cross-collateralization can provide borrowers with access to larger loan amounts or more favorable terms but also carries the risk of losing multiple properties in the event of default.