Raising JV Finance For Property Deals
Raising money for properties via JV finance is one of the best ways to grow a property business. Traditional finance is tedious, costly plus burdened with a great of personal risks. JV finance is both good for the local property investor as well as an investor who wants to get a return on their money. Actually not just a return on their money but the actual return of the principal if one invests prudently.
Raising money for JV finance is a peoples game. The JV investor is basically buying your story. He or she is buying your track record. The JV investor needs to get to know you. They need to feel assured you will communicate and update them. Even when there are issues you need to be forthright. Vice Versa, you need to feel comfortable with your investor. You need to feel comfortable everything they say they will do, they actually do. People can surprise you and people can get greedy. However those are small people who do not look at the big picture. My goal always has been establishing relationships and trying to grow the business to a much larger level than I could myself complete. ie…Synergy.
Where do you find investors or JV partners? How about everywhere! I tell everyone what we do.
Your solicitor as well as your accountant know your story. I have always used both my solicitor and accountant to open doors. Our accountant knows for example we purchased a property at approx X amount and x months later, we collected rent and sold for a Y% gain. He is aware of the actual numbers. The same is easily said with your solicitor. I strongly suggest if you are seeking a JV partner then ask your professionals that you use. It might be easier than asking family….however family members also are great sources for JV finance.
I doubt very highly posting a post on Facebook stating you are looking for a JV partner you will find. I do believe though, going to Pin meetings…mingling and showing people past projects over time you will find someone looking to make an investment with you….