I have been in property since 1994. First with my husband and now it is my company ( yet he helps out). I have always used some type of partnership or JV. Each party brings different things to the table. JV & partnerships can really be whatever you want. I mean, there’s no rule—it doesn’t have to be this or that. It must be based on ethics and honor. I always look at the big picture and long road. In Manchester I have worked with several people yet on in particular has been more long lasting. Probably over 120 properties we have worked on. Now, I’ve typically structured my partnerships in that exact situation 50/50 plus a small cost of my funds for risk and the other person brings the deal and takes care of the situation. If you’ve got no money, you obviously need to find someone who does. And so I would suggest you find the deal, you put it all together, you manage the difficulties (the paperwork and everything else that you can).

Basically, you want to make it as easy as possible for your investor. It’s very important that you get this deal done, so you can buy more and more deals down the road. And along the way, you build relationships. In my opinion, it is not the profit split. It is building the relationship with your investor. It could be 70/30? It could it be 60/40? It’s whatever you choose to do and of course your investor.

But honestly, if you’re just getting started in real estate and you’re trying to build a business and you’ve got no money—let me tell you this…A 99/1 deal, where you get 1% and somebody else gets 99%, is still better than doing nothing, right? Because if you just can’t do anything on your own, the most important thing in the beginning is building your knowledge, experience, and confidence.

I can share my JV agreement for those interested, however suggest you have your solicitor read it through & see if it is appropriate for you.

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