Posted by Mike O. on April 05, 2003 at 16:13:09:
The cheapest I can build is about $85 a foot!
Joint Venture - Posted by al heldman
Posted by al heldman on April 05, 2003 at 13:13:05:
Hello All,
I know next to nothing about real estate investing but I saw this on the website of a local (Phoenix) radio host of a real estate show. It’s not an infomercial show and it’s not primarily about investing but all aspects of real estate. As it says in the copy it does sound too good to be true. Anyway I was hoping someone could tell me if it could be legit. They apparently aren’t looking for money,
but could there be a legal or financial liability if the
company has problems? What am I missing here:
Do you need help finding a good Real Estate Investment?
What about doing a Joint Venture with a General Contractor?
Here is a Joint Venture that sounds to good to be true!
Believe Me It’s True
Sun Bay Development Inc.
License Number Arizona 126012 B California 579384 B
929 N. Val Vista Dr. #107-110, Gilbert Arizona 85234
480-813-0189 Office
Estimated cost of construction
Estimated Sales Price (2500 sq. ft.) $250,000 Cost of Construction Land 45,000 Hard Cost (2500 sq. ft. @ $50) 125,000 Soft Cost (12 months @10% + Points) 25,000 Commission 6% 15,000 Total Cost 210,000 Net Profit $40,000
We have General Contractors willing to share the net profit with investor partners. The JV partner invests NO MONEY. The JV Partner receives a $1000.00 Partnership payment with each phase of construction (Concrete Slab, Framing, Drywall, Cabinets, Final). Totaling $5,000.00
The JV partner signs on the construction loan. The bank controls the construction loan funds as construction progresses. The City inspects the construction to insure building standards. Best efforts are made to sell the home while under construction. If the home sells while under construction, an additional 10% of net proceeds will be paid to the JV Partner. If the home does not sell while under construct, upon final inspection by the city, the General Contractor will pay off the construction loan with his own long term financing. The JV Partner is released of all liability. General Contractors are limited as to how many construction loans they can have in their own name. This helps the Contractor build more inventories to sell.
Whatever you need call us for more information. It never hurts to talk.
Thanks in advance for your advise.
Al Heldman
Re: Joint Venture - Posted by IB (NJ)
Posted by IB (NJ) on April 05, 2003 at 23:26:19:
Sounds like you get paid for signing your name on the line. I can’t see where you can possibly learn about investing. Do you get to walk through the process from land acquisition, to financing, building, marketing, selling, etc? In the end, you may have a few more thousand dollars in your pocket but I don’t think you’ll be able to call yourself an investor.