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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.
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