To JV or not to JV?

[UTCVenturesLtd]

I attended the Fast Track to Wealth Workshop with Darren Weeks several weekends ago. He lets you network with others which was very generous of him. What i found with almost every investor there, was that each of us seem to have our own projects that we are working on and we are all trying to network to raise money.

Is it better to do your own deals and raise your own capital or to Joint Venture?

I find that it takes a LOT of time and effort to network which makes me wonder if a person is better to just build one property after another using the cashflow from each to obtain the next property. A JV will involve a lot of extra paperwork as well plus making sure that they are always on the same page as your project moves forward. Then on the other hand, the JV will save on interest expenses, perhaps even reducing the risk factor and with enough JVs, you can certainly move forward in high gear.

 

[SamEfford]

If you find that networking and attracting potential JV partners takes too much time, then it sounds like you have decided that it is better to do your own deals adn raise your own capital.

JV`s may help you move forward and build your portfolio faster, but it depends on what you want to do.

 

[MonteDobson]

The way I personally approach this question is:

"Would you like to have 50% of 100 properties utilizing JV`s, or 100% of 10 properties going it alone??"

Yes, JV`s take creativity, time and effort but noone said that creating long-term wealth was going to be easy!!

 

[GSI]

QUOTE (UTCVenturesLtd @ Apr 4 2008, 05:44 PM) I attended the Fast Track to Wealth Workshop with Darren Weeks several weekends ago. He lets you network with others which was very generous of him. What i found with almost every investor there, was that each of us seem to have our own projects that we are working on and we are all trying to network to raise money. Is it better to do your own deals and raise your own capital or to Joint Venture?

I find that it takes a LOT of time and effort to network which makes me wonder if a person is better to just build one property after another using the cashflow from each to obtain the next property. A JV will involve a lot of extra paperwork as well plus making sure that they are always on the same page as your project moves forward. Then on the other hand, the JV will save on interest expenses, perhaps even reducing the risk factor and with enough JVs, you can certainly move forward in high gear.


Hello UTV,

You raise a good question. Everyone does seem to have the `JV buzz` going on. And doing JVs are just one of many ways to buy property. There are many successful folks out there in a variety of businesses that have done it alone- and that`s great. JVs aren`t for everybody and nor should they be.

It`s not a matter of 100 properties with a partner or 10 on your own either. I invested in many properties on my own, with my own cash before being approached to do a JV deal. I also turned down that first deal because it didn`t fit what I was doing at the time and actually seemed like a really strange proposition then. My wife and I had been investing on our own when a friend asked us if they could join in on a deal. It took us about a year`s time to wrap our heads around it and take them on as a partner.

I do many JVs now with folks all around the world, but I still do my own deals too. Working with JVCs SUCCESSFULLY (keyword there) takes a fair amount of time and skill. Look at what you want to achieve through investing and then weigh out the pros and cons of working with partners. There is no doubt that it can be wonderful, I`ve made many great friendships and have been very successful working with my JV partners. Doing JV deals can potentially speed up building your portfolio too, but again, it depends what you want to achieve.

3 or 4 properties on your own may be enough or 6 or 8 with a JV...? It`s up to you. There is a lot of responsibility to creating JVAs and you will be trading in more of your time for a piece of the money. You`ll find the REIN site quite geared to RE JVs, but in other areas they (JVs) may not be so popular.

Kind Regards,