4d • Questions
JV Logistics/Timing on Small Multifamily Deal
I have an LOI out on a small multifamily deal and plan to bring in a JV partner for the equity (~$370k). We have full intent to close, and I’ve already told the broker something along the lines of: “I’m not the money — I have a few partners who write the check, and I handle everything else.”
That said, my usual JV partner is tapped out right now. If I hear back that the seller is good with the LOI terms, I’ll start more aggressively lining up a new partner.
For those who’ve done JVs before — how do you typically handle that process so you can stay transparent with the broker and seller while still giving them full confidence you’ll close?
I’ve done a syndication before, which is a bit different since LPs don’t see the property, so lining up capital on the backend was cleaner. Am I overthinking this? Should I just continue through the process like a syndication and line up a JV during due diligence, or should I have one locked before executing the PSA/OTP?
I’m not opposed to wholesaling the deal if needed, but it’s in a submarket where I already own and know the rents extremely well — so ideally, I’d like to close and add to my footprint. Any thoughts/guidance would be helpful here, thanks.
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JV Logistics/Timing on Small Multifamily Deal
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