Joint Venture Limited Partnerships
Structuring win-win Joint Venture relationships is our specialty.
An example of a typical 50/50 Joint Venture partnership is structured as follows:
Investor – You (50% share):
1) Provide the intial investment to cover the expenses required for the property acquisition, tenant placement, and 3 months reserve fund.
We do the rest:
1) Property Selection/Due Diligence: Properties are selected using a proven real estate investment system based on their ability to achieve YOUR goals. Properties are selected in order to obtain the highest returns with the lowest risks
A. Location : With the help and support of our full-time research team, REIN , and their partners and members, we remain up to date with the latest fundamentals across the country. Area’s are analyzed to determine where the best, NON SPECULATIVE markets exist. From there, with the help of Realtors and buyers agents, we focus in on specific properties, in a specific neighboorhood, in a specific city/town, in a specific province. Properties are selected in area’s which are benefitting from the greatest fundamentals which have historically proven to drive property values and rents in the long-term. All the while, area’s are always selected with an exit strategy in mind – Area’s with a Future, Not a past!
B. Monthly Cashflow/Appreciation analysis/ Pro-forma: We determine the rents, expenses, and estimated appreciation in the area and analyze the properties to determine if they are consistent with our system and your goals. Property Pro-forma’s are reviewed with the investor before any property purchase.
2). Property Acquisition: Once properties are selected, we will handle everything required for their acquisition. This includes:
A) Placing the Offer/Purchase negotiations: Includes all communication/working with the seller and/or Realtor or buyers agent required to secure the deal.
B) Further Due Diligence: This includes a property inspection, appraisal, and Strata corp. document reviews for condo’s/townhouses before the subjects are removed
C) Obtain Financing: We will arrange and organize everything required for obtaining suitable financing
D) Closing: We will co-ordinate our effort with the lawyers in order to complete the deal.
E) Insurance: We will obtain suitable insurance for the property – arranged prior to closing so coverage begins at the moment that ownership is transferred.
3) Renovations: When required, we will co-ordinate the renovation team in order to bring the property to a clean and safe rentable condition.
4) Tenant Placements/Management: With the co-ordination of our Property management team, we will advertise the property and screen prospects in order to place a suitable equity building tenant. We will maintain all related management responsibility throughout our ownership of the property including: maintenance, insurance, tenant occupancy, financing renewals, bookkeeping, accounting, and cashflow distributions.
5) Property Sale/Profit Distributions:
a) Sale: We will monitor the area’s economic fundamentals to determine the best time of sale. Once both parties have agreed upon a time of sale, we will handle everything involved in the disposition of the property. This includes, but not limited to the hiring and co-ordination of realtors and lawyers, advertising, and buyer negotiations.
b) Profit Distributions: Upon sale of the property, funds are distributed as follows:
i) All initial and further property contributions are paid back to investor and Coastal
ii) 50% (in this example) of all remaining profits are paid to investor. Profits include those from positive cashflow, mortgage paydown and equity appreciation. A final statement indicating investor profits/losses will be provided for tax purposes.
Please contact us with any questions, or to setup a time to talk
Disclaimer: This website is intended for information purposes only. This is not an offering of securities. Investments are available via offering memorandum only.