need help structuring joint ventures with rehabber - Posted by marla

Real Estate Investing
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Posted by marla on April 22, 1999 at 15:24:38:

Thanks, Jim.

> What benefit is there to joint venturing with a GC? Seems to me it would be cheaper to hire him.

You know, I’d been mentally testing out possible scenerios of joint venturing with a GC and had pretty much come to the same conclusion. However, I’ve seen references in other posts to “partnering” with a rehabber/GC, so when I found a GC looking for an investor to partner with, I thought it worth looking into. In my local market, retail flipping is one of the few remaining ways I see for me to profit in REI.

I don’t feel confident about my abilities to judge fix-up costs; nor do I have the physical capability to do the fix-ups, myself. I was thinking that by joint-venturing with the GC for a few projects, I could shorten the learning curve for judging rehabs and working with contractors and I’d be working with a contractor that had a vested interest in the outcome of the project.

Thanks for getting me off that track, Jim. I see where fear was clouding my thinking and I’m back to respecting my own instincts about joint venturing with a GC vs just hiring one.

Best Regards,
Marla (Santa Clara, CA)

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need help structuring joint ventures with rehabber - Posted by marla

Posted by marla on April 20, 1999 at 12:43:14:

I’ve had an initial conversation with a local general contractor who wants to work with an investor to buy/rehab fixers for retail resale. Ostensibly, I like the idea because I see this as one of the remaining few ways to make money in my market. I don’t intend to establish a partnership, per se, but rather enter into joint ventures with the GC. However, I’m not sure how to structure the relationship and would like to hear from other investors about how they set up their deals.

TIA,
Marla (Santa Clara, CA)

3

Re: need help structuring joint ventures with rehabber - Posted by JPiper

Posted by JPiper on April 22, 1999 at 02:01:31:

What benefit is there to joint venturing with a GC? Seems to me it would be cheaper to hire him.

A joint venture per se with the GC would open the property to claims against the GC…I wouldn’t do that. Perhaps a corporation that you control, that you and the GC are both shareholders in.

JPiper