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Article > How to structure a JV deal to overcome private investors objections & reduce their risk



Article kindly supplied by Rob Moore

Progressive Property Ltd,
Suite 5, Queen Street Chambers, Peterborough, Norfolk, PE1 1PA
08451309505

www.progressiveproperty.co.uk



We all know that finance is THE BIGGEST objection for most people as to why they can't invest in property. With finance getting tougher, Joint Ventures is one of the best strategies to bypass personal finance and continue to build a property empire whilst others are scratching their heads trying to get BM mortgages.

So in this article I will share with you some different structures for JV's that you can use now to overcome finance challenges.

P.S: 'Challenge' = opportunity while others fail. Problem = Fail like the others

*Straight JV: Time vs. money – you use your time and sweat equity as your asset, your JV partner uses their cash but little time

Top tip: They are looking at YOU, the PERSON, not experience, knowledge or proof [it helps just a little], so don't use 'not done enough deals' as an excuse. Think James Caan's 1st investment in the Den: a Dog Treadmill!!!

*IP JV: You use your knowledge & skills, your 'Intellectual Property' as your asset, and your partner uses their funds

Top tip: Your JV partner will be looking to you as an expert: the higher your status, the easier it will be to attract money

*MH/DoT: Using a 'mortgage host.' If you can't get finance, or want to reduce the risk to an investor who has cash but is reticent to let it out, allow them to take the mortgage, reducing their risk to almost zero, and write a contract with them [Deed of Trust] to share or apportion equity, cashflow and loss

Top tip: This is great for family, friends or unknown partners as it overcomes their biggest objections of fear and trust

*TiC JV: Tenants in common JV: You buy the property equally with a JV partner, 50% each on title deeds: equally shared risk & reward

Top tip: Works well with straight JV & IP JV. Can show good trust to a PI [private investor] JV partner

 

 

*1 for me 1 for you JV: You source for yourself and your PI who is providing the cash. You source one for them for free first, then they fund your first one after that, and you continue.

Top tip: Always source for the PI JV first, as this is great trust builder, and overcomes ALL scepticism & builds solid trust.

*Chalk & Cheese JV: You partner up with someone who has opposing skillsets: Dealmaker with analyst, techie with people person, and so on

Top Tip: Find your 'Foil' and your wealth will exponentially grow: a total must if you want leverage

*Roll up JV: You borrow money at a % per month, invest it in property, and pay the interest 'rolled up' at the end of the agreed term and timeframe

Top tip: Offer full security [1st charge] on the property they are buying and the risk will be low and the deal attractive to the PI

 

Want to know more about JV's? CLICK HERE

 

 


Rob and Mark have cleared 3 days in their diary at the end of this year for 3 very small, intimate, Joint Venture Property Consultation days in their offices in Peterborough. This will only be relevant to you if:

1. You are already a property Investor OR you are already committed to being one and have taken
necessary steps such as invested in yourself, reduced your work hours etc
2. You are positive, creative, and are open to finding new ways to fund deals and build your portfolio faster
3. You want to raise Joint Venture Finance and like working with partners and being part of an investing community
4. You have access to at least 5K [This is not needed for your application – it’s just to ensure you know how to find some funds]

There are only 11 spaces per day [and over 10,000’s will receive an invitationl]

Here is your Application form!

 

 

 

 

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