We value our joint venture partners privacy just as much as we would value yours. We never, under any circumstance, give out our partners personal information. However, JV America understands how important it is for you to make an informed decision, which is why we provide the following upon signing an initial purchase contract with us as well as a confidentiality agreement:
– Results from the credit, employment and background check on any potential tenant buyer
– Detailed exit strategy from mortgage lender on potential tenant buyer (what items need to be paid off and when, etc)
– Copy of policy guaranteeing up to $3,000 in coverage for missed rental payments
– Copy of policy guaranteeing up to $2,500 in make ready repairs
– Copy of landlord policy and with litigation and vandalism coverage
– Copy of home warranty policy covering maintenance and repairs
– Copy of land trust agreement as well as real estate attorney as trustees name and address
There are several answers to this question.
The first reason is for asset protection. By placing your home in a property trust, the property will show up as “Your Address” Land Trust (Example: 123 Main Street Land Trust) instead of your name (Example: John and Jane Smith) This serves both of us in many different ways. Hopefully, you watched the video on the home page to get a further understanding.
By placing a home in a property trust, it shields the asset from public scrutiny. Specifically, from debt collectors and frivilous lawsuits. (Not all lawsuits are frivilous, but the majority of them are) The time it takes to unravel a trust and find out the true beneficiaries of the trust is very time consuming and costly. This discourages most people from pursuing further action.
The second reason is JV America cannot legally initiate contracts with tenant buyers, collect funds, handle evictions, cover mortgage payments and cover service for maintenance and repairs unless we have a vested interest in the property. Since we are not licensed to serve or represent the public, we would be in violation of several different laws, rules and regulations. But through a joint venture where we actually have a beneficial interest in the property – we have as much of a legal right to the property as a homeowner would.
The third reason is a property trust makes it much more easier to communicate with your bank or lending institution. Many banks and lending institutions recognize property trusts as title holding vehicles for asset protection. This makes communication from JV America to your bank or lending institution much easier so we can make payments and order pay off statements when the property sells.
The fourth reason is a property trust keeps our liabilities separate. For example, if JV America was involved in a lawsuit, you would not want the lawsuit to affect your property. Likewise, if you went through a bankruptcy, divorce, lawsuit or loss of life – your life events would not change the property trust agreement we have in place for your specified property.
Remember, the property does not go in JV America’s name. Once it is deeded into a property trust, a 3rd party real estate attorney acts as trustee, which in essence is a neutral third party in the transaction. The seller and JV America are beneficiaries of the trust. Essentially, the trustees job is to act as a referee and to make sure all obligations from all parties are fulfilled, regardless of what happens to either of them in their business or personal lives. And the trustee does not control the property, it is bound by the rules of the land trust agreement.
Yes. We will split the appreciated value proceeds by 50/50. The principle amount JV America accumulates by paying down the mortgage will not be included in the 50/50 split.
Once a property is leased for a specific term, we cannot break the agreement due to how the lease is set up with the tenant buyer. However, once the lease expires and the tenant has still not bought the property – JV America will release the agreement under the following terms: JV America will factor in how much of the mortgage payment we have paid over time to factor in how much equity we have accumulated plus charge 50% of how much the property has appreciated over the course of the termination. For example, if JV America agreed to pay $100,000 for your property and found out we bought down $2,000 of principle over the course of 2 years, we would factor in $2,000 since we were responsible in paying the mortgage. Plus, if the property was now worth $105,000 instead of $100,000 we would factor in 50% of the appreciation amount of $5,000 which would be $2,500 dollars. So the total amount to release the contract would be $2,000 in principle plus $2,500 in appreciation for a grand total of $4,500 dollars in the form of a lien against the property – meaning you can pay it off once you sell or refinance. There will be an administration fee of $400 dollars to hire a real estate attorney to make sure the process is complete which will have to be paid in cash up front.
No, absolutely not. What the tenant buyer does with their finances is completely out of JV America’s control. However, we will repeat the process with a new tenant buyer until the objective of selling the home is complete.
JV America can create a mortgage with you through a reputable title company. A mortgage is no more than a lien placed against the property which secures the property as collateral. In fact, we do this even with people who already have a mortgage. The difference is, our mortgage with the seller would be a second mortgage while your mortgage will be a 1st mortgage. The mortgage payment you receive from JV America will be 100% profit on top of what you sell the home for after the lease term. Many people do not realize private individuals can create mortgages against their homes, just like banks do. JV America realizes how important it is to have a title company of your choosing involved with this process! (The terms and conditions of the mortgage will have to be negotiated between you and JV America, such as interest rates, payoff date, etc)
FHA mortgages require 3.5% down payment. For the average family, this is a big chunk of change. By working with JV America and our network of mortgage lenders, our mortgage lenders are able to apply a portion of their monthly rent to their down payment required so they have the entire 3.5% down payment available at the end of the lease term when they are ready to buy. Normally, a seller is not able to pay the 3.5% on behalf of a tenant buyer in the form of closing costs. But with a rent to own, our mortgage lenders will allow it.
Imagine if you were a tenant who was interested in buying a home in the future. Not only would you have to pay your rent, utilities and other expenses – but you would also have to save up money for a 3.5% down payment. It can be done, but the main benefit to the tenant buyer is they can apply any extra money they would save to repairing their credit and getting it up to par in order to qualify. On top of solving your own problem, you also get to help a family take part in the American dream of homeownership!
Yes. The reason why is because banks or lending institutions only lend 65% to 70% on investment properties, requiring JV America to put 30% to 35% down payment. Most of our sellers owe about as much as the home is worth, or maybe a little less. From a traditional real estate investors prospective, most like to find a bargain on a property with at least 40% equity for this reason. Many people may think this is greedy, but it is really no different than shopping at Wal-Mart for a gallon of milk so you can save 40 cents more based on the competitors prices. Real estate investors want bargains, just like grocery shoppers – it’s just a larger scale discount. The problem is, most sellers do not have the ability to sell their home so low, due to their mortgage payoff. And even if they do have the ability to sell for a bargain – they don’t want to for obvious reasons! By joint venturing with JV America, it saves us from having to go through a bank and do a lot of paperwork or paying cash for a property that is already at full retail price. In return, the seller gets what they want or need out of the property once it is sold to a tenant buyer at the end of the lease term. JV America is able to do this because we make a modest amount on the difference between your mortgage payment and what the property will rent for.
If you choose to lease your home, you have officially made your home a small business. The problem is, some people are forced into the landlord business against their will in order to cover their monthly mortgage payment. By doing a joint venture business partnership with us, we allieviate the burden of owning and managing rental property, and in turn, JV America cash flows every single month from the property.
There is a very big difference between a person who wants to be a real estate investor and a person who does so out of necessity. Believe it or not, there are crazy folks out there like JV America who actually want the burden (or responsibility) of owning investment properties. JV America saw this huge niche in the market place, and we asked ourselves -what if we can relieve the burden for our potential partners and reap a small reward every single month in return? Having one or two properties may not be worth the risk – but imagine if you had thousands of properties across America? Rather than making massive profits one single property – we base our profitability on volume, therefore alleviating massive burdens for a homeowner while consistently adding to our portfolio. By partnering with us, we alleiviate the burden of doing credit, employment and background checks on tenants, signing paperwork, rent collections, evictions, making mortgage payments, handling the cost of maintenance or repair service orders and dealing with debt collectors and frivilous lawsuits . Most importantly, our objective is to sell the home – not just lease it. And in return, we make a modest cash flow off the property every single month. It may not make sense to offer so much value out of a modest return every single month – but when you think of the bigger picture and a high volume of properties, it makes a lot of sense for JV America.
Of course! It is your property, you can do what you wish with it! However, the added value of working with JV america is we do a complete credit, employment and background check on any potential tenant buyer as well as handle all paperwork involved as your joint venture partner. We also take care of maintenance, repairs and up to $3,000 of missed rent payments if the tenant does not pay in addition to $2,500 for make ready repairs in case the tenant vacates the home and additional work needs to be done before the property can be leased again. If the tenant does more than $2,500 in damage, we can file a claim for vandalism through our insurance company. Not to mention we work with a network of asset management companies who cover rent collections, mortgage payments and evictions, if necessary. And because JV America has been in business for a combined 30 years, we know the importance of asset protection to discourage debt collectors and legal action.
JV America created an educational course for potential tenant buyers on how to find potential properties, as well as information on credit repair and consulting with a mortgage lender for future purchase. Because your property was advertised for sale, a potential tenant buyer saw your home online and fell in love with it, inspiring them to contact you and direct you to JVAmerica’s website! So regardless of what you decide to do, there is someone else in this world who loves your home just as much as you do!
No. We are a group of seasoned real estate investors who employ specialist in all of those fields. Our objective is to joint venture with you on the residential property you wish to lease and sell.