Joint Venture Capital

About Joint Venture Capital

Joint Venture Capital (JVC) is a nationwide (some restrictions apply) hard money lender for real estate investors. They offer first trust deeds on many types of properties, including non-owner occupied residential, multi-family, retail, office, industrial, vacant buildings, land, apartment buildings, construction projects, and more. They offer loans of any size, with a minimum of $250,000. Their rates start at just 6.875% for their interest-only loan products. The terms range between 12 and 36 months and their maximum LTV is 85%.

Loan Types Offered: Investment Property Loans, Fix and Flip Loans, Commercial Hard Money Loans, New Construction Loans

Property Types Covered: Single Family, Multi Family, Apartment, Office, Retail, Mixed Use, Warehouse, Industrial

Areas Served: National

Lending Guidelines for Joint Venture Capital

Below are the general loan guidelines published on the Joint Venture Capital website. Please confirm all terms and rates directly with the lender.

Loan Examples

The following loans are for education purposes only. They do not represent actual loans executed by Joint Venture Capital.

Loan Example 1

Shawn finds a townhouse in Dallas, TX to rehab and re-sell. Since he does not have enough cash available to acquire the $400,000 property outright, he takes out a private money loan from Joint Venture Capital. Because the lender agrees to a 50% loan to value, Shawn will have to put 50% down and the principle amount of the note will be $200,000. The terms of the loan dictate a 9% note for 6 months. They also stipulate a 5 point origination fee, that will also be paid upon closing.

According to the terms of the note, Shawn will have to pay a $10,000 origination fee in addition to 50% of the purchase price, or $200,000, since there is a 50% LTV. Once the deal closes, he will need to pay the lender $1,500 in monthly interest fees, or 9% times $200,000 divided by 12 months in the year. If Shawn sells the project for $480,000 after 6 months, he would make a gross profit of $61,000 after subtracting the principle amount of $200,000, the cash contributed at the close of $200,000, the origination fee of $10,000, and the aggregate interest payments of $9,000. This gross profit does not account for renovation costs.

Loan Example 2

Joint Venture Capital issues a loan to Martha for a remodeling project in Milwaukee, WI. The loan dictates the following:

a) A $310,000 sales price, b) a 65% loan-to-value (LTV), c) a 6 month term, d) a 10% interest rate, and e) a 2% origination fee.

After the rehab project is complete, if Martha sells the property for $449,500, the final numbers would be as follows:

$449,500 sales price
- $201,500 principle (65% LTV)
- $108,500 cash paid at closing (35% on 65% LTV)
- $4,030 origination fee (2% of the $201,500 principle)
- $10,075 interest payments (6 months x 10% interest)
-----------------------
= $125,395 gross profit (does not include taxes or renovation costs)

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