Our company is expanding and we are interested in finding a partner who deals with real estate of foreclosure properties in a good area around NJ.
I would like to Thank you in advance and use this opportunity to introduce you to my process of working together.
Our business in Israel recruits investors to buy foreclosure properties in New Jersey for flipping (buying, fixing and selling) and some of them prefer renting.
So far Our investments include 30 percent yield for flipping and 12 percent net return on renting. (after all costs)
We focus on a good area with a budget of 100-150k for each investor including all the costs.
Since our business in NJ has been growing nicely, I am interested in finding a professional partnership.
The duration of the investment is 4-8 months of flipping/renting from beginning to end.
There are some properties that need only cosmetics and no remodeling.
what is the process?
I receive many offers from my partner- together we examine the property costs (financial plan) and include research about debts and loans- my partner and I make an offer to the bank for a specific property.
If the bank accepts our offer we double close- we buy from the bank and the investor buys from us at the same time- the lawyer starts the process and gets the investor’s money for the closing (he is responsible for the money, closing with the bank, title insurance and the deed is in his name)- my partner starts with restoration planning and all remodeling until the end, selling or renting.
If we rent we also manage the property with a management company.
The local partner needs to have a wide experience in real estate deals with banks in good areas of NJ, experience in management and supervision of all the beaurocracy of each property including management and supervision of the contractor until the property is sold or rented. The most important task is to locate the best deals with private properties through the banking systems.
Responsibilities of each
My responsibilities include: recruiting investors, managing all the processes and updating the investor of services, transferring money to the lawyer for the closure with the bank and dealing with the lawyer.
Examining the deal, researching online, helping with management and schedules of the team, dealing with the real estate agent if needed.
My partner’s responsibilities include: finding the best foreclosure deals for our investors, researching the condition of the property, making the business plan together (all the costs, estimating value after remodeling, estimating the profit and yield), planning the process and the team to remodel the property, dealing with inspection and permits and managing all the remodeling from beginning to end
Since you will also be an agent, I think there will be other benefits for you- you can sell or rent each property after we finish remodeling each property, unless you prefer to work with other real estate brokers.
The construction team is very important- I usually work with small/medium constructors who deal with all the work and deals with the sub- constructor.
from my experience, my partner is a project manager that comes every 2-3 days to manage the construction because the timetable is very important.