I'm putting together some Lease Option deals and have got stuck on the 'find joint venture investors' part. I have gone about things a bit differently to the last time I did one of these.
Last time, I found my JV investor (which was my rellies, so it wasn't very difficult) then I bought a house, then I marketed it to a client, which took ages and nearly drove me nuts.
This time, I researched the area, then ran some workshops for potential purchasing clients, then looked for investors to JV with. I'm still on that last step.
My problem is that I now have a pile of enthusiastic, qualified clients ready to go, and no investors to work with yet. One of my clients has even picked out the house she wants. I'm not sure if it's pyschobabble or lack of ideas that's holding me up. Possibly both.
I have tried a number of approaches and asked various people for advice. It often seems to come back to "advertise in the paper" but I am getting such a low response that I'm not convinced. If this is what you would recommend, how would you word such an ad?
I know I need to be talking to people, but what people? I can't just walk up to people on the street. Well…..maybe I could. I have considered the idea of walking up and down the main drag with a giant billboard attached to my body.
Letterbox drops have been of little use, though I am currently experimenting with doing a drop every 1 – 3 days to the same sample of 300 houses.
What would you advise?
Cath
'Before you advertise for your JV partner have you obtain your Credit License under NCCP.
I for one as a potential investor would want to make sure that the person i was dealing with was Licensed and your wesbite doesnt seem to show the License Number.
CHeers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Richard,
Thanks for your reply.
I don't have a credit license and am under the impression that I would need something like this if I was doing sales instalment contracts but not for Lease Options. I am working with Tony Cordato for the legal side of things and he has not mentioned the need for a credit licence.
So I guess the next question is, are you suggesting this because it's a legal necessity? Or because it would make it easier to talk with potential investors if I had the licence?
Cath.
A combination of both.
I am suprised he doesnt think you would not need an ACL given that you are advising on Credit Terms.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Cath
If you are interested in applying for your Australian Credit Licnece (ACL), we have just launched our ACL Assistance Pack for Vendor Financiers. Information is available at:
http://www.vendorfinanceinstitute.com.au/acl-pack.htmlWe've made this Pack available because we ran our last ACL Assistance Day for Vendor Financiers on 13 Nov and and many VF'ers still need to get their ACL's before 31 December, as their "Registration" for the ACL runs out then.
There's also an interesting quote from a very experienced vendor finance solicitor, made a month or so ago, that goes, "anyone serious about vendor finance cannot be a one trick pony – that is, do lease options only".
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
Thanks Richard and Paul.
I will look into it.
Cath.
Cath if you want to find jv partners you need to find motivated similar property investors which you could meet at seminars.
Dr Gordon Ku has a seminar that is teaching what you are trying to achieve.
do a google search on dr house property
If you want to meet other similar investors you need to network before a deal comes along so you have an email list of highly targeted property investors that may be interested in any future JV.
Go to property investor meetings like active property
http://www.activepropertynetwork.com.au/P.S you may need a credit license to do option lease setup.
duckster wrote:Cath if you want to find jv partners you need to find motivated similar property investors which you could meet at seminars.
Dr Gordon Ku has a seminar that is teaching what you are trying to achieve.
do a google search on dr house property
If you want to meet other similar investors you need to network before a deal comes along so you have an email list of highly targeted property investors that may be interested in any future JV.
Go to property investor meetings like active property
http://www.activepropertynetwork.com.au/P.S you may need a credit license to do option lease setup.
I agree with all these guys (duckster, Paul & Richard). All very valid and well-informed opinions. I would like to add to these comments.
Networking is such an important part of this investing game we are all involved in. You have a few options while you are waiting to get your ACL.
– You could JV with someone that does have an ACL, which is what I am doing (with Gordon Ku, my mentor).
– You could also get yourself referral fees for any good leads you have ie buyers, vendors or even investors. We currently pay at least $1000 for any leads that we use. I am currently working with a developer who is paying ME $2500 per buyer lead that I send him. This is great for any buyers that don't qualify for my Vendor Finance properties, I just flick them on to my developer as good quality buyers. Saves him the time and cost of advertising. This all comes from networking.Be careful you don't end up like Filip and Nikola Butkovic, thats what they did, vendor finance with no licence, and now they are all over the net.
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