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
