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  • Refurbish/Develop

    Structuring investment/JV deal

    Hi Guys,

    Looking to gather information about how getting an investor on board should work. How would you structure a deal / work out what they would get out of the property (Eg a % Return yada yada) Has anyone got experience of this? Would be great to have a thread on this.

    I'm ideally looking in a theoretical situation to part fund a property and have an investor pay for the renovation.

    TIA

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    There is a thread here Ollie - but it is from the lender's point of view:

    How to stay safe lending money & property JVs

    You can offer them a straight return - so you borrow money from them at an agreed rate - or they become a shareholder in the JV SPV and get a percentage of any profit.

    It might be better to get a builder as your JV partner?

    Hopefully someone else with more experience of this can input and you can always search on the word "structure" to find other related threads.

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    Thanks Vanessa,

    This would be a JV with a Family member wanting to invest in the project(s). How does it work, doing the maths and proposing a high return from the sale price or the revalue price? I've been trying to find a full guide.

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    There isn't really a guide, as each JV will be different and you have to cater to the needs/wants of the JV partner.

    Start with what they want for inputting their money and take it from there.

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    .... Alas - I have now found the perfect post: I just cant post the link..! it's called: Joint venture structure *Moderator inserted link.

    Thanks Vanessa

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