The Joint Venture deal is quite simple.
The money partner puts up all the money, in the form of a one-time non returnable capital contribution.
They qualify for the loan.
I do all of the work.
- I find the property,
- make the written offers,
- negotiate the transaction,
- re-market the property,
- handle collections,
- repairs and
- property management.
- In essence … everything.
When the month is over, the expenses are paid and we split the profits or losses 50-50.
- If the investor has out of pocket costs to cover the mortgage, he is reimbursed from future profits.
- If Southwestern Funding Group, Inc. (my company) is out of pocket for expenses, we are reimbursed from future profits.
- We are the caretakers of the system.
- It’s clean and simple …
- and it works time-after-time.
That’s the story of leverage and investors.
Please remember to corne back and review this section often. The principle of Leverage is critical to your success. You must master it.