Qualify for the loan and hold the title
Joint venture partners signal an agreement that partners percentage of property gains or losses
Buying an asset that suffers with below-market rents if you have tenants
Renew assets to attract higher rents
Rent sets at the highest price imaginable
Increase ownership
Refinance assets with a mortgage
to a decreasing interest and to withdraw equity from property
Repeat the equity approach of past assets to acquire upcoming assets
Buying an asset that suffers with below-market rents if you have tenants
Renew assets to attract higher rents
Rent sets at the highest price imaginable
Increase ownership
Refinance assets with a mortgage
to a decreasing interest and to withdraw equity from property
Repeat the equity approach of past assets to acquire upcoming assets
Buying an asset that suffers with below-market rents if you have tenants
Renew assets to attract higher rents
Rent sets at the highest price imaginable
Increase ownership
Repeat the equity approach of past assets to acquire upcoming assets
When the goods are sold
Product is shared 50/50
If the assets are at a loss,
Both partners the loss
Jessica Burgess, John Sopinski and Rachelle Younglai/
The balloon and the mail
How a Real Estate Joint Venture Works
Passive partner
Active Partner
Find the case
provides the
Capital for
The bass
payment and
Closing costs
Manages
Renovations
Qualified for
The mortgage
and sustains
Title
places
tenants
Manages
owned
JV partners
Sign an agreement
Indicating
Partners
share or
Losses of the
proprietorship
Cash (profit or loss)
shared 50/50
When the goods are sold
Product is shared 50/50
If the assets are at a loss,
Both partners the loss
Jessica Burgess, John Sopinski and Rachelle Younglai/
The balloon and the mail
How a Real Estate Joint Venture Works
Passive partner
Active Partner
Find the case
Provides capital
by the deposit-
Ment and closure
new
Manages
Renovations
Qualify for the loan and hold the title
places
tenants
Manages
owned
Joint venture partners signal an agreement that partners percentage of property gains or losses
Cash (profit or loss) is divided 50/50
When the assets are sold, the product
They are shared 50/50. If the goods are sold
At a loss, partners suffer loss
Jessica Burgess, John Sopinski and Rachelle Younglai/The Globe and the Courier
BRRRR method
Step 1: Purchase
Buying an asset that suffers with below-market rents if you have tenants
Step 2: Renew
Renew assets to attract higher rents
Step 3: Rent
Rent sets at the highest price imaginable
Increase ownership
Step 4: Refinance
Refinance assets with a mortgage
to a decreasing interest and to withdraw equity from property
Step 5: Repeat
Repeat the equity approach of past assets to acquire upcoming assets
Jessica Burgess, John Sopinski and Rachelle Younglai/
The balloon and the mail
BRRRR method
Step 1: Purchase
Buying an asset that suffers with below-market rents if you have tenants
Step 2: Renew
Renew assets to attract higher rents
Step 3: Rent
Rent sets at the highest price imaginable
Increase ownership
Step 4: Refinance
Refinance assets with a mortgage
to a decreasing interest and to withdraw equity from property
Step 5: Repeat
Repeat the equity approach of past assets to acquire upcoming assets
Jessica Burgess, John Sopinski and Rachelle Younglai/
The balloon and the mail
BRRRR method
Step 1: Purchase
Buying an asset that suffers with below-market rents if you have tenants
Step 2: Renew
Renew assets to attract higher rents
Step 3: Rent
Rent sets at the highest price imaginable
Increase ownership
Step 4: Refinance
Refinance assets with a loan at a decreasing rate
Interest Rate and Property Equity
Step 5: Repeat
Repeat the equity approach of past assets to acquire upcoming assets
Jessica Burgess, John Sopinski and Rachelle Younglai/The Globe and The Courier
Rachelle Younglai is the heritage reporter for The Globe and Mail.