JV Initial Interest Letter/E-mail

[BDFI]

Hello,



I am starting my research to determine if JVing is for me. If I was to start JVing I would most likely approach family and friends first, as I am sure most people start with.



My question is how have other successful investors intitiated this process with family and friends? I reviewed REINs initial contact letter but it appears too formal for an initial letter to family and friends. Also, have investors initiated the process with an e-mail (or letter) or do you try to meet in person?



Thanks,

Bart

 

[JoeRagona]

Hi Bart,



The best thing to do is a search on JV here on the forum because a lot of this has been answered in great detail ...



However, the simple answer is "however you feel comfortable". Often I find many people look for a magic bullet to talk with and attract joint venture partners and although one can learn from ideas, it's best to be 'you' because you are familiar with your inner circle target market.



With friends and family it may be something simple like "yea, I'm taking care of my own money now by investing in safe Canadian Real Estate that gives me a predictable return instead of worrying about how the financial market is doing..."



The way to initiate conversation is to pull on their pain triggers, and these days its all about losing money in the financial markets and not fully understanding how Real Estate can be the difference.



I would have casual conversations with people, trying NOT to sell them on the idea of JV-ing with you, educate, tell, and offer if it comes up ... but let THEM come to you.



If you want to chat a bit more offline about it, I can set up a conference call with you to answer more of your questions ...



Just email me [email protected]

 

[OlegP]

Hello Bart,



If you already own rental property by yourself, it could work very well to share with your friends and family that you have been researching and studying an investment system used by most sussessful R/E investors in Canada, and bought some real estate using that system. Show what cash flow you are making, etc. Now, that you have learned how to do it on your dime, you are expanding your business, and would like to offer them a chance to participate first.



If you have not bought any rentals yet, you may want to consider finding the way to learn on your own dime before going to your friends and family. If possible, of course.

 

[bizaro86]

It should be a natural conversation flow, don't try and force it. If you're interested in and good at real estate investment, real estate will come up naturally. I don't do JVs as a personal choice, but I've had people become aware I buy real estate, quiz me out about it, and then ask how they could do the same thing.



Regards,



Michael

 

[reinvestors88]

We do JVing...and part of our role is to answer questions prospective investors may have. However, I believe it should be done to a limited extend. I learned in the past that some individual try to squeeze us with information and later on, will use it for own benefit totally disregarding the time and effort you spent with them. Thus, it is highly important, as I read from many posts here, to do due diligence on your prospective investors. Just sharing the lessons learned along the way...

 

[Thomas Beyer]

First you build a solid track record, say 3 properties minimum with your own cash.



Then you talk about it: in person, on the phone, at a party, on the golf course, after the church service, at the kindergarten, at a formal gathering, in a seminar style setting, in a document (emailed or mailed), in a PowerPoint or on a website .. many venues .. whatever works for you or the potential investor.



That presentation/ talk / document should include

• a story / section / page / slides / words about "why me"
• a story / section / page / slides / words about "why real estate in general "
• "why this specific town"
  "why this specific type of asset" and at the end
  "what is in for the investor" i.e. if you give me X $s you get Y % of property or a mortgage at Z% or what ever the intent of your JV is

It should have numbers and pictures, besides the story.



Most folks who have money love to hear from others what worked for them: I bought XYZ stocks .. I bought farmland .. I think Gold is overpriced .. etc. and also most folks own real estate and have made considerable money in it, but don't know how to duplicate it.

 

[RussellWestcott]

[quote user=BDFI]Hello,



I am starting my research to determine if JVing is for me. If I was to start JVing I would most likely approach family and friends first, as I am sure most people start with.



My question is how have other successful investors intitiated this process with family and friends? I reviewed REINs initial contact letter but it appears too formal for an initial letter to family and friends. Also, have investors initiated the process with an e-mail (or letter) or do you try to meet in person?



Thanks,

Bart


For Family and Friends... pick up the phone!



Better yet, if possible, go for a coffee. Talk to them, and listen very carefully... take a genuine interest in what is going on in their life. Find out if they are happy with how their money is performing (are they getting a high rate of return safely and securely?).



And when they ask you about how things are going... so them how passionate you are about Real Estate, all the wonderful things you are learning and the actions you are taking, and how you are working with partners to buy great cash flow producing assets.



Do not ask them to invest with you.



If they are interested they will start to ask you questions about your investing... if they are not interested they will not ask.



If they ask... continue the conversation about what you are doing



Good luck!!

 

[BDFI]

Thank you all for taking the time to respond. All great advice. I will work at learning more about JVs to determine if they are right for me and in the mean time I'll start chatting about real estate with more of the people I interact with. I have been investing for more than ten years and after giving it some thought I do not think any of my friends have any idea of what I have accomplished through owning investment real estate. I will start expanding my real estate conversations with friends and see where the conversations take us.



Thanks again,

Bart