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JV-Flip

Joint Venture

No Monthly Payments, No Experience needed, No Income Check, No Reserve Required, No Closing Cost
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 description

  • 100% Financing on Purchase, Rehab, and all other costs

  • No Monthly Payments, No Experience needed, No Income Check, No Reserve Required, No Closing Cost, No Cash Out-of-Pocket 

  • Just pay the Outsiders for their services  | Total Outsiders Cost: $1,150 | You pay us to pay them | Due from the start so that you never have to think about it | e.g. appraisers, survey takers, Title clerks etc.

  • We take "100%-Financing" seriously: each penny spent prior gets reimbursed at funding | e.g. earnest money deposit,  soft costs etc.

  • Profit-Sharing upon selling the property: You keep 60%-50% of profits after the lender gets reimbursed for the cost

  • The longer you work with us, the more profit you get to keep

teRM

  • Rates: 1rst time Borrower 12%-15% | Repeat Client 9%10%

  • Up to 9 months

  • Profit-Sharing: 1rst time Borrower keeps 50%-60% | Repeat Client keeps 60%-70% of Profits 

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EXIT

  • Selling

  • Hold to Rent is prohibited 

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* Final rate is calculated based on Experience & Loan-to-Value:

 â–º More Experience = Lower Rates

&

Lower LTV = Lower Rates

REPAYMENT

  • NO Monthly Payment (rolled into loan) 

  • No prepayment penalty

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Eligibility

  • Borrowers: Corporations, General Partnerships, Limited Partnerships, Limited Liability Companies (LLC’s), Revocable Trusts, Land Trust

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  • Property: Single-Family Residences (SFR)

`guidelines

  • No Experience needed (Perfect for beginners)

  • No Reserves needed

  • No Income Check

  • No Tax Returns

  • Minimum FICO: 620

 

 â–º| For HOT States (NJ, MD, DC, TX, SC, MA):

  • NO Minimum FICO requirement

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Cost

  • You only pay 3rd-Party Outsiders for their job. The total is $1,150. That is due when you accept the offer, and therefore when you sign & return the LOI (Out-of-Pocket Expense)

  • Origination Fees: 1rst time Borrower 4-5 Points | Repeat Client 2-4 Points (NOT PAID out-of-Pocket, and  that fee is rolled into your loan instead) 

What is Joint-Venture Flipping? JV-Flipping is just flipping with a partner, and in this case, the partner is your lender. Unlike usual Joint Ventures in general, there is no Equity Sharing and the property remains yours 100% throughout the process. Sharing happens at the profit level when you sell the property.
Basically, the lender bets on you by lending 100% of the money for both Acquisition & Rehab. It would otherwise be almost impossible to get 100%-financing without a very good credit score, a proven track record, and 15%-20% reserves to cover interest payments for a few months.. Whereas lenders usually assess if a borrower can fit within their risk-tolerance range,  the JV-lender takes a lot more risk since most of the regular norms are not put in place. Only a minimum credit score is required sometimes and other important factors like track record, income, reserves...are left aside. 

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What are my out-of-pocket expenses? You have to open your wallet twice: 1) When you submit your application, there is  $1,150-fee to cover 3rd party expenses (e.g. Appraisal, Title, environmental etc.). This fee is Non-Refundable | 2)  You need enough reserves to cover 1/4 of the total rehab that is reimbursed to you shortly after calling in the inspection. Simply, there are usually 4 draws throughout the Rehab phase that are paid out after inspection. Therefore, you will have to pay the 1st part of the work with your own funds, then call for the inspection, and only then you will be reimbursed. You must repeat the process 3 other times.

 

Who owns the house in JV Flipping? You are and remain the sole property-owner throughout the journey until the property gets sold. Unlike the common JV partnership, this specific funding is similar to a regular Flip loan. The only difference is that all existing costs are all rolled into the loan so that you never feel any financial weight. With a super loose underwriting. almost everything passes underwriting and you never have to pay any monthly payments, or closing costs, or else.

However, it is not like these costs vanished from the equation. You still pay for them like for a regular loan, but you never made aware of the bill yourself because they just get added to the amount of money that you borrow. 

In addition, unlike a regular loan, you must split your profits which makes it a more expensive route than non-jv funding.   

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What type of borrowers is JV Flipping the most appropriate for? JV Flipping is used with a different purpose in mind per each category of borrower, but it is appropriate for all flippers regardless of the experience level .

For instance, a new flipper with no experience goes JV in order to rack a couple of flips under his belt to become eligible for other types of experience-based financing, On another hand, and experienced flipper will use the JV to supplement his/her income in addition to the other regular loans that are taken out in parallel.

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Are there any Restrictions when flipping JV compared to the usual way? The one restriction regards your exit strategy from the transaction. The lender takes a risk on you in exchange for Profit-Sharing. This said, the only way for a profit to be made is if the property gets sold. How would the lender make a profit if you decided to hold the property to be rented? Therefore, your only choice of Exit is to sell the property for a profit after the rehab gets done

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Which States do you serve? Nationwide.. However, there are a few states that are considered "Hot" due to the current market conditions of  their Real Estate.  "Hot" States are: NJ, MD, DC, TX, SC, MA

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How do I qualify for JV Flipping? 1) Your Cost of Purchase + Rehab must remain within 70% of the selling price (or After-Repair Value ARV) | 2) If your deal in not located in a "Hot" State, you must have a 620+ Credit Score to qualify. Deals located in "Hot" States do not require a minimum Credit Score.

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How long does it take to get funded? 15 to 21 days.

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Which Properties are eligible? Non-Owner Occupied places only | Type: Single-Family Residences (SFR)​

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Is there a Prepayment Penalty?​ Never.

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Submission Checklist:

  • $1,150 Application Fee for 3rd party costs

  • Completed Application (Download all forms from the Document Portal below)

  • Tri-Credit Report

  • Scope of Work

  • Latest Bank Statement

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Document

Portal

â–º You must complete & return all required forms along with the documentation listed on the above checklist.

You must submit the package via email to your dedicated Zoryn Engineer.

You will receive a reply-confirmation that will serve as a time-stamp for your application's submission  

aPPLY by

pHONE

Tel. 917-300-1023

Monday - Friday: 9.00am - 7pm EST

Saturday: 11.00 - 2.00pm EST

 

Please eMail any questions to info@zoryn.com

No place to flip?

We will get you a place with 30%-35% Equity (must pick 1 deal out of 3 sent to remain eligible) 

Your Deal is designed with "Too much Success to Fail". If there is something to remember, it is this: 70%. A deal is either great (Buy & Fix Cost less than 70%) or Too Risky (above 70%)

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