Joint renovation: we repair your house and split the profit.
In short
If you don't have the money to repair your property, we repair it for you and split the profit fairly. You bring the house, and ETO pays for the repair. When the repaired house sells, each side gets its share. Every deal is negotiated and put in writing.
In plain words
Three ideas that help you read the examples.
- ARV: the value after repairs
ARV stands for after-repair value: the price the house could sell for once it's repaired. In the examples, it's the "sale price after repairs".
- The profit and the split
The profit is what's left from the sale after subtracting the value of the house today, the cost of the repair and the selling costs. That profit is divided between you and ETO; the examples show the split on a typical repair. On big repairs, the split is adjusted and agreed in writing before the work starts.
- Who sells the finished house
When the work is done, the house is sold. Who lists it and sells it, and how, is put in writing in the agreement before the work starts.
The math: profit = sale price after repairs − value of the house today − cost of the repair − selling costs.
Three examples with numbers
Made-up numbers, so you can see how the math works. Two show the split on a typical repair; on the big repair, the split is agreed separately.
The house needs a kitchen, a bathroom and paint, and the owner doesn't have the money for the work. The numbers are made up.
| Value of the house today, as it is | $95,000 |
|---|---|
| Cost of the repair, paid by ETO | $30,000 |
| Sale price after repairs (ARV) | $165,000 |
| Selling costsWhat it costs to sell the finished house. | $7,000 |
| ProfitThe sale price, minus today's value, the repair and the selling costs. | $33,000 |
| Your share of the profit (60%) | $19,800 |
| ETO's share (40%) | $13,200 |
A house with hurricane damage: the work costs more than the house is worth today. The numbers are made up.
| Value of the house today, as it is | $60,000 |
|---|---|
| Cost of the repair, paid by ETOMore than the house is worth today. | $150,000 |
| Sale price after repairs (ARV) | $280,000 |
| Selling costs | $12,000 |
| ProfitThe sale price, minus today's value, the repair and the selling costs. | $58,000 |
| Split of the profit | Adjusted and agreed in writing before the work starts |
The house owes property tax to CRIM, the agency that collects it for Puerto Rico's towns, and needs a typical repair. The numbers are made up.
| Value of the house today, as it is | $110,000 |
|---|---|
| CRIM debt on the houseNormally paid at the closing of the sale, from the sale money; you don't have to pay it first. The agreement says which side it comes out of. | $6,000 |
| Cost of the repair, paid by ETO | $35,000 |
| Sale price after repairs (ARV) | $190,000 |
| Selling costs | $8,000 |
| ProfitThe sale price, minus today's value, the repair and the selling costs. | $37,000 |
| Your share of the profit (60%) | $22,200 |
| ETO's share (40%) | $14,800 |
This page is for information only: it isn't an offer of securities, and no profit is promised. The terms of each joint renovation are set in writing, house by house.
Three phases and a clear agreement
Nothing starts without the agreement in writing.
We look at it together
We look at the house, what the work would cost, sales in the area and whether a JV makes sense for you, or whether a cash sale suits you better.
We sign the agreement
All in writing: the money for the work, what gets renovated, the schedule, the split, who sells the finished house and what happens if something goes off plan.
Work, sale and split
We do the renovation and, when the house sells, the costs are paid and the profit is split as agreed.
Cash or JV
When does each path make sense?
| Cash purchase | Joint renovation | |
|---|---|---|
| Time | Closing in 7 days once the paperwork is ready | Months: the work, then the sale |
| What you get | The agreed cash price, in exchange for speed | Your share when the house sells, per the agreement |
| Your role | Close and move on | Partner in the project, per the agreement |
| Makes sense if | You need certainty and cash now | The house has potential and you can wait |
| Doesn't make sense if | You want to get more out of it and have time | You need the money this week |
Questions about joint renovation
Do I stay the owner during the project?
The structure is set in the agreement. What matters is that it isn't a promise on a handshake: every deal is negotiated and put in writing, with your rights and how the result is split.
Who decides the finishes and the budget?
ETO coordinates the work within an agreed scope. Big changes are discussed; the goal is a house that sells well, not a magazine remodel with no ceiling on cost.
Can the house have debts?
Yes. The house's debts (CRIM, mortgage) are normally paid at closing from the sale money; you don't have to pay them first. The third example on this page is a house that owes CRIM.
Can I switch to a cash sale partway through?
It depends on the agreement and the timing. Sometimes a direct purchase is still an option; it's looked at case by case.
Do you charge to look at whether a JV makes sense?
No. The consultation is free, with no obligation. If the numbers don't work for a JV, you can compare it with a cash offer.
Think your house could qualify?
Send us the address and your situation, from wherever you live, and we'll look together at whether a JV or a cash sale makes more sense for you.