Hi,
Interested to hear from people about their experiences with Joint Ventures or Money Partners. Did it work out? how did you structure it and how did you find these private investors??
All responses appreciated.
Cheers
A mission a pain in the a.s, lost a lot of money more than ever before, lost a $2 million profit, approached plenty of people I know and plenty of people I don't know, people said they were keen, they would look at the deal and they were still keen but at the end of the day they were just real tyre kickers with either no real cash or couldn't understand what was in front of them until it was to late and the property was sold, lots of people would say why would the vendor sell it for this price and why has no one else snapped it up, I got sick of listning to people say that.
the deal was there and there was huge profits to be made and people could just not or did not want to beleive it, now a smart accountant snapped it up and he is in with a grin.
Will I look at a joint venture again, maybe but it would have to be with the right person and there hard to come by.
I see great deals all the time but the big problem is the deposit to fund each of these deals.
The next problem is drawing up an agreement between the 2 parties, you will be happy and the other person will be happy but when the lawyers put it on paper and it goes backwards and forwards a few times and then the other persons lawyer talks in some strange lawyer laungage and then the other party thinks it is all to hard and runs a mile.To me it is easy, here is the proof here is my back ground, here is a great deal just front some cash and we will make each other wealthier than we were yesterday.
If only it was that easy.Hi Geoff
Welcome to the forum. I hope you enjoy your stay
The second chapter of our booklet goes, "Buying properties and on-selling them with Vendor Finance is a great business model. However, eventually we were unable to buy enough properties to meet buyer demand. This “challenge” was overcome by people noticing our success and wanting to get involved."
I quote this to show a basic principal of sales and, let's be fair, if you are wanting to work with JV Partners and/or Money Partners you're going to have to sell your plan. The first part of the "sales cycle" can't be missed. It's "rapport" and if you don't have a good relationship with someone, they're never going to buy your plan.
Remember, only 2% of sales are made on the first contact. 3% are made on the second contact, 5% on the third contact, 10% on the fourth contact and 80% of sales are made on the fifth to twelfth contact.
Also, if you push something at someone, they'll back away. Don't be the person/plan people back away from.
We've made a business of working with JV Partners and Money Partners. Start small, be very reputable and people will notice what you're doing.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
Hi Geoff, I agree with Paul & Karen when they say "start small, be very reputable and people will notice what you're doing." I've been involved in three different joint ventures. Two of them I'm still involved in, a 4 townhouse development and a long term buy/hold/renovate/sell syndicate with 3 properties in it. All the projects have worked out to date. Although the first project which was an 8 townhouse development took a lot longer and was pretty challenging. The two projects I'm still involved in have been with friends and family members. These projects have run a lot smoother to date. In terms of structuring both these types of syndicates have been formalised using a JV agreement (for the developments) and a Syndicate Participation Agreement (for the syndicate). <moderator: delete advertising>
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