Take Charge Properties LLC

Hello, Marc here.

   I wish to give you an idea how  Joint Ventures can fund Real Estate projects and be an excellent venue for increasing Capital Asset and Self Directed IRA portfolios. Joint ventures consist of the Joint Venturer and an Investor's Capital or a Self Directed IRA, funding 100% of each individual Real Estate project. For this, your returns from the JV could range from 10% to 15% in a 6 month to 12 month period. The return would either be the agreed % on the funds invested or the agreed % on the net profit, whatever is greater. If the project becomes a rental, the net rent is shared also with the investor.

   The LLC or Joint Venturer does the rest. Close the purchase deal, do the prehab or rehab, market and sell. At the close of each deal the principle and interest then goes to the Investor. The investor has to do nothing. On the otherhand, the investor, during the JV in an LLC, does having a voting position on the project that was invested in.

 

Let's give an example:

Discounted home purchased $65,500 plus repairs of $26,000 = $91,500

Investor funds project = $91,500

Repairs are made.

ARV of house = $150,000

After 6 months, Sold Price = $130,000

Net after closing = $121,500

Subtract Purchase and Repairs of $91,500 =Net Profit $30,000

The Contract is set up as a 1 year balloon. Investor receives 12% on the funds or 15% of the net profit. Whatever is greater.

The project is completed and sold in 6 months. 12% on the $91,500 for the 6 months equals $5,490

and, 15% on the net profit of the $30,000 equals $4,500

The investor would receive the $5,490, the greater of the two.

Now if the project was completed to sale in 4 months, the 12% would equal $3660

and the 15% on the net would still be $4,500

Then the investor would recieve the $4,500, which would be the greater of these two, etc.

 

 

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