Invest Smart, Not Hard: Your Real Estate Joint Venture with Simply Do It
Are you looking to build a robust real estate portfolio without the burdens of active management?
At Simply Do It, we aspire to smart, hands-off investing that puts your capital to work. Our Equity-Share Joint Venture model is designed to provide a almost-seamless entry way into real estate investment, allowing you to benefit from property appreciation and rental income while we handle all the heavy lifting.
This program is a partnership opportunity with Dani Beit-Or and a small group of other investors (typically one to three), creating a powerful synergy of capital and expertise.
How the Partnership Works:
Your Role: The Passive Investor. As an investor, your primary contribution is the capital for the down-payment and acquisition costs. You gain equity stake in the property without the hassle of locating deals, managing tenants, or dealing with day-to-day operations. Your investment is truly hands-off.
Our Role: The Active Partner. Dani, through Simply Do It, is responsible for the entire investment lifecycle. This includes:
- Deal Curation: We rigorously vet and qualify a limited number of high-potential properties specifically suited for this type of collaboration. Our due diligence ensures we only move forward with deals that meet our strict criteria.
- Financing: Dani will personally obtain the mortgage for the property. This is a major benefit for you, as it removes the burden of mortgage qualification and its impact on your personal credit.
- Operational Management: From the moment of acquisition until the eventual sale, we oversee every aspect of the property. This includes tenant screening, rent collection, maintenance, and all financial reporting.
The Financial Breakdown:
Financial Model: Equity Share with Management Fee is a straightforward and transparent structure:
- Equity Split: Your capital contribution for the down payment gives you a pre-agreed equity share in the property. Dani’s contribution of expertise, labor, and mortgage liability is also recognized with an equity stake.
- Ongoing Management Fee: A percentage or flat fee of the gross monthly rent is paid to Simply Do It for handling the day-to-day operations. This ensures the property is professionally managed and maintained.
- Cash Flow & Profit Distribution: Net rental income (after all expenses, including the mortgage and management fee and operating reserve budget) is distributed to the partners according to their equity share. When the property is eventually sold, the profits are also split based on this agreed-upon percentage.
The Benefits for You, the Investor:
- Truly Passive Income: Your money works for you. You get to reap the rewards of real estate investment—cash flow and appreciation—without having to dedicate your time or energy.
- Access to Curated Deals: We only present you with opportunities that have already passed our rigorous screening process. You can be confident in the quality of the investment.
- Avoid Mortgage Hassles: Dani secures the financing, meaning you don’t need to worry about credit checks, loan applications, or tying up your personal finances with a new mortgage. This also allows you to put a smaller amount of capital to work without being solely responsible for the financing.
- Risk Mitigation: While all investments carry risk, the partnership structure and our expertise help mitigate it. Your investment is supported by a team dedicated to the property’s success.
- Direct Partnership & Transparency: The partnership with Simply Do It is formalized through comprehensive legal documents. In many cases, a trust may be created, with each investor designated as a beneficiary, further protecting your investment. This ensures all parties are clear on their roles, rights, and responsibilities from the beginning.
How to Get Started: The Simply Do It Process
- Initial Consultation: We’ll schedule a call to discuss your investment goals, our model, and whether this partnership is the right fit for you.
- Deal Presentation: Once we have a qualified property, we’ll present a detailed breakdown including financials, projections, and the partnership agreement for your review.
- Legal & Due Diligence: You will have the opportunity to review all legal documentation and perform your own due diligence on the property.
- Funding & Closing: Upon agreement, you provide the funds for the down payment and closing costs. We then proceed with the acquisition and close on the property.
- Enjoy Passive Returns: From here, Simply Do It takes over. You’ll receive regular updates and distributions, enjoying the benefits of real estate ownership without the day-to-day work.
Frequently Asked Questions (FAQs)
1. Is the property in my name?
In most cases, Dani obtains the mortgage, so the property will be under his name. Your partnership interest and capital contribution are secured by legal documentation, such as a formal partnership agreement or a trust where you are a beneficiary. In some cases, if the purchase settings will allow it, the property title will go into a trust, and you will be a beneficiary of the trust.
2. What is my total financial commitment?
Your commitment is the capital required for the down payment and, associated closing costs, and ongoing operational expenses that will be required beyond what the rental income can cover. Dani handle financing.
3. What happens if the property is vacant?
We actively work to minimize vacancies through our professional management. However, in the event of an extended vacancy, partners will be consulted on the best course of action to cover expenses and re-stabilize the property.
4. How is the management fee calculated?
The management fee is a pre-agreed percentage or a flat fee of the gross monthly rent. This fee compensates for all the day-to-day operational tasks, such as tenant management, maintenance, and financial reporting.
5. How are profits distributed?
Net cash flow, after all expenses including the mortgage and management fee and after maintaining a reserve operating budget, is distributed to the partners based on their agreed-upon equity percentage. This distribution typically occurs on a quarterly basis.
6. What is the expected duration of the partnership?
The partnership is structured for a long-term hold, typically 7-10 years, to maximize appreciation. However, the exit strategy is determined in the initial agreement.
7. How do I know my investment is secure?
Your investment is secured by the asset itself (the property), a comprehensive legal agreement, and our commitment to transparency. We provide regular financial statements and updates on the property’s performance.
8. Can I be involved in the operational decisions?
While this model is designed for a passive investor, we value your input. Major decisions, such as a large capital expenditure or the eventual sale of the property, will be discussed and agreed upon by all partners.
9. What is the process for selling the property?
The sale process and a potential exit strategy are outlined in the partnership agreement. When the time comes to sell, all partners will agree on a listing price and strategy, and the profits will be distributed based on the equity split.
10. What if I want to get out of the partnership early?
The partnership agreement will detail the process for an early exit. This may include a buyout option, selling your share to another partner, or other pre-defined terms.