All Forum Posts by: Robert Nicklin
Robert Nicklin has started 1 posts and replied 2 times.
Post: New venture 50/50 with partner advice and suggestions
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Originally posted by @Victor S.:
huge deal, seeing how it'll be your first. what track-record does he bring to the table? have you worked with an agent to establish this arv? did he detail the scope line item by line item?
Hi Victor, thanks for the response. Its my second deal. First one is a rehab and rent on a similar property. I have been to a couple of his other properties (flips) and my architect is working with him on a number of other projects. Its early in the deal and I have done some comps for rough arvs. They are slightly optimistic, I think closer to $1 million is being careful.
I still have a lot of due diligence to do. I thought the split was reasonable, I am only really bringing the cash to the table?
Post: New venture 50/50 with partner advice and suggestions
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Hi Bigger Pockets, Checking my profile and this it my first post! I have spent so much time on BP and listening to the podcasts, its hard to believe.
I am looking at a fix and flip of a multi unit with an experience contractor / investor. I wanted some advice from the community. The offered agreement is a joint venture, 50/50 of profits. We are financing via a hard money lender he uses, 15% down on the property and they will fun the construction. I will be funding the 15%.
Numbers below:
Property $450K
Construction: $200-250K
ARV: $1.1million
I need to work on the numbers and detail, but its a four unit and we should get $300K per unit.
I am fairly new to this, so I see it as a great way to learn, with an experience investor. Hes also bringing the deal to the venture.
Do people think its a fair deal and any advice about setting up new ventures in terms of agreements etc?
Thanks in advance. Robert