Property Joint Ventures (JVs)

Partner with other Investors for mutual reward

Property Joint Ventures (JVs)Property Joint Ventures, often referred to as "JVs" are a great strategy for Property Investors to avoid having to use personal finance to continue to grow their portfolio, especially in the current climate when banks and other traditional mortgage lenders are reluctant to lend. There are several types of Property Joint Venture, the majority of which we describe below:

Straight JV (Time vs. money)

You use your time and sweat equity as your asset and your JV partner uses their cash.

Note: Your JV Partner is looking at you, the person, not your experience, knowledge or proof, although it doesn’t do any harm of course, so don’t worry if you haven’t done enough deals.

Roll up JV

This is where money is borrowed at a fixed % interest rate per month and then invested in property. The interest is then paid back to the JV Partner, including the capital sum ‘rolled up’ at the end of the agreed term and timeframe.

Note: Offer full security, usually 1st charge on the property being purchased so that the risk will be low and the deal very attractive to the JV Partner.

Intellectual Property JV (IP JV)

You use your knowledge and skills as your asset and your JV Partner uses their funds.
Note: Your JV partner will be looking to you as an expert, therefore the higher your status, the easier it will be to attract JV finance.

Chalk and Cheese JV

You and your JV Partner have opposing skillsets. For example, technical person with a people person; process person with practical person etc etc.

Note: If you can find the perfect match on this basis, your wealth can grow very quickly.

Tenants in Common JV (TiC JV)

You buy the property equally with a JV partner, 50% each on property’s title deeds, thus equally sharing both risk and reward.

Note: This works well with for both straight JV & IP JVs. This also shows a good element of trust to a JV partner.

Mortgage Host / Deed of Trust JV (MH/DoT JV)

This type of JV involves using a ‘mortgage host.’ If you unable to secure finance, or you wish to reduce the risk to an investor who has the cash but is reluctant to use it, then allow them to put the mortgage in their name. In doing so, this reduces their risk to almost zero and a Deed of Trust contract is drawn up to share equity, cashflow and capital gain/loss.

Note: This type of JV is great for family, friends or unknown partners as it overcomes their biggest potential objections around fear and trust.

One for Me One for You JV

You source one property for your JV Partner first for free and then they fund your first property and then you continue to repeat the process for as long as desired.

Note: This uses the Law of Reciprocity to build solid trust and overcome any possible scepticism as you must always source for JV Partner first.

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