Description

House Flipping Investing Products

This product includes:

• Joint Venture Agreement
• Joint Venture Modification Agreement
• Promissory Note to Joint Venture
• Mortgage to Joint Venture
• How to Find Investors for Flipping Houses

The House Flipping Investing Documents includes everything you need to form collective partnerships, known as joint ventures, to expand your potential by enabling others to invest in your house-flipping venture! They are the actual tools we use at Select Home Ventures LLC to collect funding from investors.

Why do we need investing products?

Our approach is NOT a no-money-down or get-rich-quick scheme. The goal of our approach is to build a business with sustainable growth and long-term success! Flipping houses is capital intensive because houses are expensive! For most people, a house is the single most expensive item they will ever purchase! Capital may be borrowed through mortgage leveraging. Unfortunately, traditional mortgage lending is not intended for flipping houses. In traditional mortgage lending, the bank expects YOU to pay for the house in exchange for having a place to live.

• The bank verifies your personal cash flow because they expect you to pay monthly from the very beginning and they don’t expect the house to make money.
• The bank requires a house in livable condition, but many flip houses are not in livable condition at acquisition.
• The bank only lends up to the value of the house before remodeling, the quiet and improvement costs are not included.

We need the HOUSE to pay us for creating value. We need lending based on the potential in the house to create value. This form of lending is scalable and suits the needs of our business. The only limit comes from our ability to find more houses to flip.

What is a Joint Venture?

A Joint Venture is a cooperative business arrangement entered into by two or more parties, which otherwise retain their distinct identities, for the purpose of completing a specific project. The specific project is your flip house! Investors in a joint venture can be individuals or business entities. They are real estate investors that understand the potential to create value. We find them at real estate investment club meetings. These are groups of people who understand your goals that get together periodically just to meet you!

Joint Venture Agreement

• PDF Document
• SHV Joint Venture Agreement
• Document that will create a joint venture for you in parts
• Highly configurable to meet your needs
• Delivered digitally and immediately

The Joint Venture Agreement is the contract we use to enter into a joint venture with an investor. This document creates the joint venture in parts. This allows us to add investors, one by one, into an existing joint venture at any time during the project, without requiring the others to sign more documents. When we add a new investor, we execute another copy of the same SHV Joint Venture Agreement, which then becomes part of the larger document. This is convenient because it means we don’t need everyone at the same place and time!

There are two investment options with this agreement.

• Fixed rate of return – An annual percentage is negotiated and entered at signing.
• Variable rate of return – A profit/loss split percentage is negotiated and entered at signing.

The expected return varies with the market. The variable rate should be higher than the fixed rate on average, because it comes with more risk to the investor.

Joint Venture Modification Agreement

• PDF Document
• SHV Joint Venture Modification Agreement
• Document that changes an existing Joint Venture Agreement
• Delivered digitally and immediately

The Joint Venture Modification Agreement is the contract we use to change an existing Joint Venture Agreement with an investor. This document will change the amount of capital the joint venture has from an existing investor. We use this agreement for overlapping projects. The investors move money from one project to another, either because one has concluded, or because they favor another project more.

Promissory Note to Joint Venture

• PDF Document
• SHV Promissory Note to Joint Venture
• A promise to repay in writing
• Delivered digitally and immediately

The Promissory Note to Joint Venture is the document we use to promise repayment of the investments in a joint venture. This document is basically an IOU that contains the promise to repay, as well as the terms for repayment. The SHV Joint Venture Agreement requires the execution of the SHV Promissory Note To Joint Venture. The investment the joint venture provides is evidenced by a promissory note. The joint venture secures the investment with a mortgage using the promissory note.

Mortgage to Joint Venture

• PDF Document
• SHV Mortgage to Joint Venture
• Document to secure an investment in a joint venture
• Delivered digitally and immediately

The Mortgage to Joint Venture is the document we use to secure the investments in a joint venture. To secure an investment, the SHV Joint Venture Agreement requires the execution of the SHV Mortgage To Joint Venture. The purpose of the mortgage is to provide security for the investment the joint venture has provided as evidenced by a promissory note. It does that by guaranteeing the following.

• The property can’t be sold without repaying the debt to the joint venture.
• If the terms of the promissory note are not met, the property can be sold to satisfy the debt through foreclosure.

In addition to the mortgage, this product contains mortgage releases for both a business entity and an individual. When the house is sold and the joint venture is paid, the joint venture will record a release of mortgage.

How to Find Investors for Flipping Houses

• PDF Informational Document
• How and when to use Joint Venture Agreements
• Delivered digitally and immediately

How to Find Investors is an informational document that covers three different lender/investor options for house flipping. The options are conventional lenders, private money (hard money) lenders, and build-your-own investors. The document details who they are, where to find them, how to close them, and the granddaddy of them all …. Can you flip houses with no money? This document also explains how and when to use Joint Venture Agreements for flipping houses.

DISCLAIMER: WE ARE NOT LAWYERS These are the actual contracts that we use at Select Home Ventures LLC. They were written by our lawyers. However, WE ARE NOT LAWYERS! The information you obtain at this site is not, nor is it intended to be, legal advice. Before you use these contracts, please have them reviewed by a real estate lawyer in the jurisdiction within which your company operates.

We are here to help you! Please feel free to contact us with any questions you may have. We welcome your email or call and the opportunity to connect with you!