Our joint venture partnership investment option is ideal for those who don’t want to own or manage investment properties, but still want to earn a monthly interest payment as well as split the profits from a property. With this option, you can invest in real estate without ever dealing with market fluctuations, rental vacancies or unexpected repair expenses.
How does this work? We enter into a five year partnership agreement where your money will be used to purchase a property but the property will be held by Sundog Real Estate. We will look after all maintenance, tenant issues, etc. You will earn 3% per annum on your investment PLUS 50% of the profits that are realized when the property is sold.
For example, we use $60,000 of your money to purchase a property including closing/holding fees and renovations to improve the property and be able to attract a good tenant. We then pay you a fixed rate of return of 3% on your investment each year (about the same as a GIC if not higher), which works out to be $1,800 per year in this case.
During the entire duration of the partnership agreement, Sundog Real Estate manages the property and looks after all tenant issues, maintenance, U.S. tax filing, etc. You only have to deposit your cheques.
After five years we sell the property (assuming an acceptable level of appreciation). In this example let’s assume that the property sells for $140,000 (after realtor and legal fees), the $80,000 profit will be split 50/50 between the investor and Sundog Real Estate. In this example, you will receive $40,000 at the sale of the property.
Your total income then becomes $49,000 ($1,800 per year for 5 years plus $40,000 at the sale). This would make your effective rate of return 81.6% which is 16.3% per year for the 5 years.
- We acquire, you fund, we manage, we both profit on the sale of the property.
- 50/50 partnership. We share the profits equally.
- You also earn 3% in interest on your investment each year.
- Your money is protected by a mortgage or lien on the property for the amount invested.
If you’re interested in becoming a partner with Sundog Real Estate, you can Contact Us. We will be happy to discuss our partnership options with you.