- Joined
- Jan 13, 2008
- Messages
- 287
In Arlen Dahlin`s fantastic presentation about closing JV partners (JV package CD`s), he says that when a potential partner asks him if he`s sure the value of homes is going up, he answers "absolutely". This is obviously a very powerful way to close someone as certainty communicates confidence.
He also says that if you don`t believe it, you shouldn`t be trying to get JV money. I also agree with this, as honesty trumps all else.
However, this brings up the point, how are we supposed to close potential JV`s if we are uncertain there will be significant appreciation. Now, I know that on the inflation curve we`ll see appreciation, but I think it would be a little bit disingenuous of anyone to say that without a doubt we`ll see significant appreciation now, things are just too uncertain.
This brings up something that Greg Habstritt and Russell Westcott both touched on last night. It`s time to get back to Real Estate the old way of creating value, and pushing the business upwards with fundamentally sound tried and true techniques (improving the property, buying below market for built in equity etc.) The point is that to sell our opportunities honestly and effectively, we have to, now more than ever, present RE opportunities as BUSINESS opportunities above all else, a business with a business plan.
With all that as prelude, the point of this post is to solicit ideas as to how to present business ideas to potential JV`s. Here are the ones I`ve been thinking about and working on:
1) pursue strategies to buy 10% below market value as a way of mitigating potential for further depreciation
2) as part of business plan (if buying in edmonton) utilize city money to convert unused basements into secondary suites thereby drastically raising rents and values with the instant $24,000 equity the city provides
3)sell your JV as a stable yield producing asset
I`m sure my fellow members and guests can come up with more creative ideas than those. What are you doing?
Thanks,
Zander
He also says that if you don`t believe it, you shouldn`t be trying to get JV money. I also agree with this, as honesty trumps all else.
However, this brings up the point, how are we supposed to close potential JV`s if we are uncertain there will be significant appreciation. Now, I know that on the inflation curve we`ll see appreciation, but I think it would be a little bit disingenuous of anyone to say that without a doubt we`ll see significant appreciation now, things are just too uncertain.
This brings up something that Greg Habstritt and Russell Westcott both touched on last night. It`s time to get back to Real Estate the old way of creating value, and pushing the business upwards with fundamentally sound tried and true techniques (improving the property, buying below market for built in equity etc.) The point is that to sell our opportunities honestly and effectively, we have to, now more than ever, present RE opportunities as BUSINESS opportunities above all else, a business with a business plan.
With all that as prelude, the point of this post is to solicit ideas as to how to present business ideas to potential JV`s. Here are the ones I`ve been thinking about and working on:
1) pursue strategies to buy 10% below market value as a way of mitigating potential for further depreciation
2) as part of business plan (if buying in edmonton) utilize city money to convert unused basements into secondary suites thereby drastically raising rents and values with the instant $24,000 equity the city provides
3)sell your JV as a stable yield producing asset
I`m sure my fellow members and guests can come up with more creative ideas than those. What are you doing?
Thanks,
Zander
