Just Completed my First Joint Venture for 5 Million Dollars.. Sweet&#3

[#1investor_cream 5]

I was Looking for some Funding and I found a Company on Facebook that owns a Fund in New York City. We just Signed our Joint Venture agreement today!!

 

I'm Excited that I am now in the Position to purchase Cash Flowing Assets!

 

I'm a Highscool Drop out - Anyone Can do this Business.

 

Proposal for a Joint Venture Opportunity

Principals:

1. Partner 1. (80%) - An individual residing in NJ with a reasonable interest in acquiring real estate assets in FL. Has sufficient net worth to invest a of $5 Million US Dollars into JV.
   

1. Erik Collazo (10%) - An individual residing in FL with reasonable interest to assist a JV partner in acquiring real estate in FL. Posesses an astute negotiation ability. Will coordinate all minor and major rehab projects as project manager. Erik has flipped properties for profit before.
   

1. Frank Zeledon (10%) - An individual residing in FL with a FL real estate license # 3204287 also with reasonable interest in acquiring real estate that will prepare offers, and act as a realtor representing the JV. Brings analytical abilities to work for the JV and will leverage his network of wholesalers and industry relationships to find compelling real estate opportunities.
   

The principal parties mentioned above have specific interest in forming a joint venture to acquire, rehab, maintain, lease, and divest real estate assets. The responsibility of the first principal, Partner 1, is funding of the JV and directing the activities of Erik Collazo and Frank Zeledon. The two individuals with a 10% interest each, require that the majority principal specify at his discretion and on an ongoing quarterly basis, which asset type (residential, commercial, industrial, land)to pursue acquisitions. Example of activities Principals 2 and 3 will be involved in are listed but not limited to below:

• Searching of properties where reasonable rate of returns can be achieved in Miami Dade and Broward Counties ( but not limited to)
  
• Reasonable amount of due diligence before definitively acquiring a property
  
• Preparation of offers and negotiation of properties
  
• Complete Project Management of Rehabbing properties in deteriorated conditions
  
• All decisions to buy and hold for rental cashflow or fix and flip will be sent to Mario for final approval.
  
• Principals may elect a property manager as the JV portfolio of properties becomes too intensive to manage.
  

During the life of agreement, Partner 1 reserves the right to disapprove a particular transaction even after due diligence has been presented by Erik and Frank. The JV will pay for all properties cash and will look to create above average returns from the buying and selling of real estate. The JV will be in place for a period of 10 years at which point it becomes renewable every year for one more year. Erik and Frank will each receive a 10% interest in a newly formed domestic limited liability company as their incentive to acquire the most attractive deals for the JV. Partner 1 will provide proof of funds to Erik and Frank so they can engage in negotiations with banks, individuals, asset managers, life insurance companies etc. Proof of funds should exceed $ 3 Million USD.

 

 

This above is not the Agreement I signed today

Just the proposal.

 

What do you Think of this Deal Friends?? Thoughts?

[MichaelC 160]

Erik, on the surface it appears fine. But as always, your due diligence is required. Get some background info on these folks first, and don't sign anything until you have it reviewed by an attorney.

Personally, I'm not thrilled about your cut being only 10%, but that's your call. On the other hand, having a partner who can buy with cash opens all sorts of possibilites for you. Best wishes!!

[#1investor_cream 5]

The 10% is only for the Cash Flow we receive Monthly from the properties that we buy and hold.

If we are Contracting to turn over to a end buyer then we split profits from the deal 50/50

My lawyer approved the JV and we are moving forward to buy some Multi Family.

Thanks MC for your Feedback!!

[MichaelC 160]

Nice, Erik. I'm looking forward to some ropa vieja and a cafecito on calle ocho. Keep me posted, bro.

[#1investor_cream 5]

Nice, Erik. I'm looking forward to some ropa vieja and a cafecito on calle ocho. Keep me posted, bro.

 

MC you let me know when you are available and it would be my Treat !!

[MichaelC 160]

Hi Erik,

Sorry for the slow reply. I was in LA for two days, just returned today and am trying to catch up. As soon as you cash your first, fat paycheck, I'm there, bro!