Hi,
Can someone explain how most JVs (joint ventures) are setup with an investor end buyer?
For example: I have an wholesale offer but I’m missing a few components needed to include a POF, VOF and 1% earnest deposit requested by the agent. Is there a way to go around these requests or can a JV be setup with someone. If so, how is this done, please explain? - Thanks again
Going thru an agent can be a difficult task. First they ask you for a stinkin POF letter, then they want at least $1,000 earnest deposit. then if they find out your going to wholesale it to someone and your not the end buyer, they will treat you like scum, and they will usually avoid you in the future.
They will also make it impossible to deal directly with the home owner and get a much lower price.
If they think there is a chance of them losing a few dollars of their precious commission working with you, forget it.
The MLS is usually retail priced houses, even the fixers will cost you twice as much as they should. If you find one that you think ther may be a slight chance of making a profit on, ther will be others bidding the price up.
I often wonder when someone decides to become an investor the very first thing they do is they get a Realtor that only deals in retail priced homes.
If your wholesaling, usually You want distressed properties, and distressed sellers,
if they have time to list with a Realtor, the realtor has convinced them they can get top dollar for this junker, they probably are not your prospect.
I was talking to an experienced investor awhile back after a realtor came in and ruined my Lease option deal. that the investor was interested in taking over, and I said, I havent had and good experiences with Realtors.
He laughs and says, “and you never will”
I’d start by googling Joint Venture Structure.
You will probably find lots of info and forms, etc.
Read them, see if any fit your situation.
What do you have to contribute other than a found deal?
Proof of funds letters are easy to get from your local bank…presuming you have a viable account there. DO NOT falsify one.
THe Proof of Funds letter should be enough to cover the earnest money.
Just put in a note…to be cashed upon opening of escrow…for the earnest money.
Lots of ways to do these things. However if you are just starting out and lack the funds, etc…why not try bird-dogging and give the deal to an investor for a piece of the action.??