• Why Should You Consider Joint-Venturing?

  • At some point in an investors’ real estate investing career or journey, you will quickly run out of funds to keep investing in properties, so what can you do?

    There are many ways to move forward but in my opinion one of the best ways is to Joint-Venture with another investor.

    Check out a recent podcast I gave on the Joe Fairless show about Joint Ventures http://joefairless.com/blog/jf589-how-she-syndicates-mortgages-through-jv-deals/

    What is a Joint Venture – essentially it is a method where partnerships are undertaken for people to pool their funds, their talents, their knowledge and their resources to in this case, purchase a property or grow their portfolio of properties.

     

     

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    Joint Venturing has many benefits. In most cases because people are coming together to use their knowledge and resources, there is less risk! Let’s look at a few top benefits here:

     

    1. You have purchasing power – in a JV one partner will bring the necessary down payment and depending on the deal or the partners, the other might bring nothing as he is the one taking care of the property, finding the tenants and doing general maintenance. However in some cases the other partner is also required to have some skin in the game so might be responsible for at least the closing costs. Usually one or both are on title – again depending on the structure of the JV agreement and profits and losses are split 50/50!

     

    1. As an investor who wants to get started, you can join with another seasoned investor to learn and you will qualify for the mortgage, assuming you have the capacity to do so. By doing a JV with a seasoned investor, you get to learn the ropes pretty quickly and you can build your portfolio that much quicker.

     

    1. Finally when you do a Joint Venture or JV you are usually doing it with others who have the same goals and objectives as you so it becomes a win-win in most cases!

     

    When and if you decide that Joint Venturing is for you make sure you speak to other investors who have done it for their advice for what worked and what didn’t and also make sure you speak to your lawyer for tax advice and finally make sure you speak to me or another mortgage broker, who can advise you on the best way to qualify!