Florida JV Equity Deal

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mtel

416 Posts

Posted - 05/14/2008 : 12:21:47 PM

The principals have financing in place. All they have to do is take out the property. Project is located in Florida.

The property cost $5.250MM. They have $1.470m into it.( 28%)

Would consider $3.5MM on second.

Would like a JV equity partner @ $5.250MM

Partner will receive initial investment back within 4-6 months with $4-5MM at end of project(3-5yrs).

The project is 450 apartments (approved) that will profit about $40k ($20MM total)

20% to JV partner

1.5 yr absorption rate on apartments

Principals would like to move FAST (30 Days)

privatelender4u

153 Posts

Posted - 05/14/2008 : 12:39:16 PM

What part of FL?

EMScommercial

4749 Posts

Posted - 05/14/2008 : 12:47:19 PM

I'm not seeing it.... why not just get a first and keep the profits?

mtel

416 Posts

Posted - 05/14/2008 : 12:48:12 PM

quote:
Originally posted by privatelender4u

What part of FL?

Calling you now.

KHufford

5310 Posts

Posted - 05/14/2008 : 12:51:01 PM

quote:
Originally posted by EMScommercial

I'm not seeing it.... why not just get a first and keep the profits?

Yeah..?

Plus Equity takes more than 30 days..

mtel

416 Posts

Posted - 05/14/2008 : 2:52:39 PM

quote:
Originally posted by EMScommercial

I'm not seeing it.... why not just get a first and keep the profits?

Apologies. I had a quick conference call to take. The principal has to take out the seller and have the land free and clear. Where I need clarification is why the land has to be free and clear. But right now, that's the short answer.

mtel

416 Posts

Posted - 05/19/2008 : 4:28:29 PM

BTT

mtel

416 Posts

Posted - 05/29/2008 : 1:12:33 PM

So this project has changed a bit. The principal on this one asked me to take one more shot. I'm going to repost this an entirely new, separate post because it has now changed to a debt scenario.

In short, the borrower is now looking ideally for 5.25MM but will settle for 3.5MM (net) minimum. The LTV is now reasonable. Purchase price is 7.8MM. The borrower has 1.5MM hard earnest deposit in the project. Seller is carrying a 2nd for 1.95MM. The land is just dirt but it's fully entitled. The lender's loan will be taken out within 6 months. Hard money is not an issue. Points reflecting the project's inherent risk are not an issue.

Time is of the essence (2-4 weeks is preferable.)

Please email if you can consider this one.

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