Looking for coaching on how to get JV

[KeithW]

I`m new to investing and I`m looking to talk to my uncle about prepositioning funds a JV. It`s scaring me a little bit thinking about talking to him about this because he is my best bet for getting that initial deal. Getting blindsided by a question I should be expecting is my major fear. What I`m looking for is someone willing to do some practice runs with me or at least give me a bunch of common questions (plus good answers) that someone would ask. I was initially thinking about trying to get an 6-8 unit apartment to start off with but they are a little high priced right now so I`m looking to try to get money for a 3bd townhome in NW edmonton. Thanks

Keith Kelly
[email protected]

 

[housingrental]

Question #1: What experience do you have profitably operating investment properties of that same type in that same location?

 

[JoeRagona]

Yes Keith,

I agree with Adam...I appreciate your enthusiasm but frankly if you are `terrified` of questions a potential JV partner may ask you are not ready for a JVP. That`s the reality.

I echo a great statement from Peter Kinch to myself when I first began and had two properties (not as large are yours) and asked him how to approach JVs - he said "Use up all your own seed capital and learn the mistakes yourself before using OPM (other people`s money) and you will be a different man in 18 months from now.

I can`t tell you how true that is and is one of the main things I will always remember. It HAS made me a different person and with my portfolio, mistakes and successes I can answer almost every question I get with confidence and sincerity. I am also VERY confident I can carry a venture - knowing there will be challenges along the way I am better equipped to handle them and my potential JVs can sense my integrity.

That is probably the most important thing.

I wish you success in your new career!

 

[KeithW]

I don`t have experience yet with RE, just learning. Trouble is I got a new job receintly and I have to wait a while until I will be able to get a mortgage. I want to start, but I need someone to hold the loan for me.

Keith

ps. It`s not terror, it`s unprepardness. And that can ruin things just as bad.

 

[JoeRagona]

QUOTE (KeithW @ May 13 2010, 07:24 AM) ps. It`s not terror, it`s unprepardness. And that can ruin things just as bad.

Yes, that`s true, I didn`t mean it in a bad way...jumping into a large deal like that can also be challenging if you are unprepared. The last thing you want to do is `learn` with other people`s money. If a deal goes bad, your reputation goes with it and the chance for further JVs in the future may be tarnished. That`s the reason you need to find a way to buy your own real estate first to get through the learning curves.

 

[housingrental]

I`ll second Joey`s post
Why is it appropriate for you to learn while risking someone elses money?
Develop expertise using your own money first
QUOTE (KeithW @ May 13 2010, 07:24 AM) I don`t have experience yet with RE, just learning. Trouble is I got a new job receintly and I have to wait a while until I will be able to get a mortgage. I want to start, but I need someone to hold the loan for me.

Keith

ps. It`s not terror, it`s unprepardness. And that can ruin things just as bad.