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Our Syndicated Deal Program is Simple
Our process is hassle-free, and we'll communicate directly throughout the entire process. You never have to wonder about the status of your investment or what's going on with the project. We provide access to up to date information on the status of the project and the accounting.
Example Deal
Syndicated listings provide investors the opportunity to invest and profit in lucrative real estate developments opportunities. JB Properties & Development provides detailed analysis of every deal, and if an investor makes the decision to invest, they will share in the full profit of the deal. Our deals are structured using a combination of cash from limited partners (LP Investors) and loan debt. Unlike most real estate investment structures, our profit sharing philosophy is generous and straight forward. We share every dollar of profit with our LP partners, not just the profit allocated to your cash investment. What that means is higher returns and ROI's on your money. Here's an example flowchart of how profit is allocated. Below that is a sample deal scenario.
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Property purchase price $ 650,000
Renovation cost $ 300,000
Total project cost $1,070,000
Time to complete 140 days
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Lending total $ 880,000
Investment from LP's $ 180,000
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Projected profit to LP $ 89,400
Projected ROI to LP 48%
Projected Annual ROI 127%
How can our returns be so high? We do it by strategically using debt to backfill the capital requirement. The cost of debt is typically less than the profit, and we share the profit generated from that borrowed money with our LP partners. In the example above, the LP partner is putting up $180,000 but the total project cost is over $1,000,000. The cost of the loans for that extra $900,000 is less than the profit generated. We share that excess profit with the LP partners. In the example above, the profit specific to the $180,000 investment is $26,600 ( a 14% ROI), but the additional profit paid to the LP partner from the loan surplus is $62,800 (an additional 34% ROI). The combined profit is $89,400 generating a combined ROI of 48%
We're regularly asked why we don't just fund our own deals and why we would pay such a large portion to our LP partners. Simply put, cash makes these deals possible and by sharing generously, we're looking to build lucrative, long term relationships.
If you would like to discuss any of the syndicated deals or the program in general, feel free to contact us any time.
We look forward to working with you.
