In this episode, Rob & Matt explain Joint Ventures to the point that we will all be able to approach them with confidence! Rob and Matt answer the essential questions about joint ventures and explain why this could be a great creative solution for anyone who wants to move forward.
Sign Up For MSOPI Here: https://bit.ly/msopi-nomad
KEY TAKEAWAYS
What is joint venture? When 2 or more persons come together to form a temporary partnership for the purpose of carrying out a particular project e.g. land development/commercial conversion.
Why begin a joint venture? There are many reasons why individuals come together to joint venture on a project. A common joint venture is that of money and time with one individual supplying the money and the other supplying the time required for the project to be realised. Joint ventures may also be a combination of money and knowledge.
Why would you not want to undertake a joint venture? A joint venture may not fit in with the chosen lifestyle of some people. The most important reason for not beginning a particular joint venture is when it doesn’t create a win-win situation for those involved.
What makes a good joint venture? A good joint venture is one where there are good relationships and synergy between people. It is key that you know what you want and that everyone knows their role and responsibilities.
How can joint ventures be structured?
Straight JV – TIME vs MONEY, partners understand each other’s role in the partnership i.e. the person with time completes the groundwork the partner with money provides just that.
Intellectual JV – KNOWLEDGE vs MONEY, where partners input is clearly defined as money and knowledge being brought together.
Mortgage host JV - deed of trust drawn up with one person taking out a mortgage, there is an agreed equal split for the joint venture.
1 for you, 1 for me JV - this is where the agreement is you take first one, I’ll take the second and so on. To form this type of joint venture there needs to be a very good ongoing relationship and a contract in place.
Roll up JV - Someone is rolling up the finance. It is necessary to set a timeframe and always overestimate to give flexibility and autonomy.
Communication is vital as property is a peoples business. Always be open and honest in your communication with other people.
Time is key to building good relationships. Building a rapport takes time, trying to find common ground can help to strengthen connections.
BEST MOMENTS
‘As in life, if you are creating a win- win situation you can’t go wrong’
‘Intuition – if feels right, it will be right’
‘If it feels one-sided don’t feel obliged to go ahead. If someone is going to lose out don’t go ahead’
‘If you strategically work on finding investors and money, it will come to you’
‘Utilise social media as much as possible - build relationships’
‘There are ots of different ways to network – always go somewhere with an intention in mind’
‘Get creative. You never know where you are going to find money’
VALUABLE RESOURCES
Property Nomads Podcast series: https://itunes.apple.com/gb/podcast/the-property-nomads-podcast/id1440016017?mt=2
FCA: https://www.fca.org.uk/publication/policy/ps13-03.pdf
ABOUT THE HOSTS
Rob Smallbone and Matt McSherry, the hosts of The Property Nomads Podcast, are on a global mission to guide your success. Success can happen in many ways, shapes and forms. Think about what success means to you. More properties? More clients? Financial freedom? Time freedom?
Rob & Matt are just two guys who want to make a huge difference to people around the world. They are here to guide your success in property, business and life and to inspire you to achieve your goals, dreams and visions.
They’ve travelled, explored, and invested. And they’re not planning on stopping these activities anytime soon.
Buckle up, sit tight and enjoy the ride that is life.
CONTACT METHODS
LinkedIn: https://www.linkedin.com/company/the-property-nomads
Facebook: https://www.facebook.com/ThePropertyNomads/
Instagram: https://instagram.com/thepropertynomads?utm_source=ig_profile_share&igshid=3osu2empj2mi
Twitter: https://twitter.com/PropertyNomads
YouTube: https://www.youtube.com/channel/UCvFeaviV6nJN8EMElwtJWEg
Subscribe to The Podcast
iTunes: https://itunes.apple.com/gb/podcast/the-property-nomads-podcast/id1440016017?mt=2
Stitcher: https://www.stitcher.com/podcast/the-property-nomads-podcast
uk property, Investment, Property, Rent, Buy to let, Investing for beginners, Money, Tax, Renting, Landlords, strategies, invest, housing, properties, portfolio, estate agents, lettings, letting, business: https://patreon.com/tpnpodcast
