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Joint Venture Inquiry/Information

Adam Marsh

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May 17, 2021
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Hello,

I am currently seeking a joint venture opportunity in Edmonton Alberta. I am looking to purchase my first home and get started in real estate investing. My goal is to purchase a home with a basement suite, renting out either upstairs/downstairs and then living on the other floor. I am mainly seeking someone who could increase my buying power as my own is limited and does not give me enough to purchase a home on my own. I would appreciate any information/advice anyone is willing to give on how I can do this.

Thank you,

Adam Marsh
 

Thomas Beyer

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Aug 30, 2007
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Start with parents, brother, grandma or uncle Joe first. Then, once you got a track record of 2-3 house ask strangers for JV money.

In theory there’s no difference between theory and practice. In practice, there is !


Sent from my iPhone using myREINspace
 

Adam Marsh

New Forum Member
Registered
Joined
May 17, 2021
Messages
2
Start with parents, brother, grandma or uncle Joe first. Then, once you got a track record of 2-3 house ask strangers for JV money.

In theory there’s no difference between theory and practice. In practice, there is !


Sent from my iPhone using myREINspace
Hello Thomas,

As I mentioned in my post I am looking to joint venture with someone that will increase my buying power. I am not looking to ask strangers for money as I have that covered it is the qualifying part of the process I need the joint venture for. If I had the opportunity to ask family members I believe I would have done that before joining a real estate forum and putting out a post looking for someone to do a joint venture with.
 

Thomas Beyer

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Hello Thomas,

As I mentioned in my post I am looking to joint venture with someone that will increase my buying power. I am not looking to ask strangers for money as I have that covered it is the qualifying part of the process I need the joint venture for. If I had the opportunity to ask family members I believe I would have done that before joining a real estate forum and putting out a post looking for someone to do a joint venture with.

Place an ad in the JV section of this forum. You may get lucky. Better to start with your own money, then invite others.

What books did you read? Mine? (80 lessons learned). Don Campbell’s? Russel Wescott’s? Ozzie Jurock’s?

What real estate related course did you take?

Would you go to an inexperienced dentist that advertises a 2 for 1 root canal special ?


Thomas Beyer, Asset Manager, Investor, Community Improver, Author, Father, Mentor www.prestprop.com
 

Cory Sperle

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Sep 1, 2010
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Hello,

I am currently seeking a joint venture opportunity in Edmonton Alberta. I am looking to purchase my first home and get started in real estate investing. My goal is to purchase a home with a basement suite, renting out either upstairs/downstairs and then living on the other floor. I am mainly seeking someone who could increase my buying power as my own is limited and does not give me enough to purchase a home on my own. I would appreciate any information/advice anyone is willing to give on how I can do this.

Thank you,

Adam Marsh
I hear what your saying, but a JV is not the way to go here. I started very much the same way over 20 years ago. I worked a series of low paying, crappy jobs until 6 years later I finally had a job good enough to qualify for a mortgage and save for a down payment, and did what you have stated here, bought a SFH and rented the basement. I did a series of deals after that using more savings and home equity, buying several singles, and two apartment buildings. Then and only then (8 years ago) did I do my first JV with other peoples money, and now I have bought 10 apartment buildings. My path was not easy, or a get rich quick type of strategy but it was sound and it worked for me, and will work for you too.

You are fortunate to be in Edmonton and not BC, as as jobs are generally higher paying and real estate prices are lower so it should not be too much of a stretch to work your way up to a job that qualifies enough. Someone could agree to JV with you, but you likely wouldn't have any skin on your body at the end, like you put up all the cash but give up 75% of equity to the one who qualifies for you.
 

Matt Crowley

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Dec 14, 2013
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I agree with Cory. A solid, already legally suited home is $350k in Edmonton. 5% down is $17,500. With closing costs you need about $20k. Live in the basement suite, renovate it if needed and then start saving for your next home.

Another point not considered - at the scale of investment you are talking about, the pie isn't really big enough to split. You generally need to get into $1 MM+ for splits between multiple investors to start making sense at all. You need some experience and executed deals to get you there.

My personal two cents... there isn't enough of a value-add to be taking on an investor at all for a SFH strategy. One needs to buy a home in a good submarket with good bones but beyond that there isn't much of a value add. For a real estate 'expert' to take a piece of performance, there needs to be outperformance which means that you need to outperform some benchmark. For real estate private equity on a scale of larger deals it is more typical to have some form of waterfall that would be something like i) 100% return of capital plus 8% p.a. to equity; ii) thereafter, 80% to equity investor and 20% to the general partner (real estate 'expert'). The fact that the real estate expert can provide services for hire like finding a house and property management does not entitle them to 50% of all distributions in my view. It is a simple asset to acquire and renovate and does not require difficult repositioning.
 
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