As most of you will know by now, I do all my property investing on a joint venture basis creating a win-win for everyone involved; I get to grow my property portfolio without using my own money and my investors get to leverage my time and knowledge by growing a portfolio completely hands-free should they so wish.
But should you just joint venture with anyone? The answer to this is very simply no and I’ve learnt the hard way. I joint ventured with someone at the beginning of my property investing career who didn’t have the same ethics and values as me which meant we didn’t operate in the same way. Ultimately, this taught me a really important lesson early on which I’m now able to share with you in my 3 top tips below on who you should be doing joint ventures with….
- Make sure you’re both on the same page!
If you have the same values and are both heading in the same direction in terms of what you want to achieve and by when then this is a great foundation for a successful working relationship
- Find someone who has the opposite of what you have.
If someone has cash but doesn’t have the time to invest in property or the knowledge of how to do it then they will need to find someone with knowledge, time and experience to help them. It is very clear then who puts what into the joint venture too make it a win-win situation. This is why I work with people who are keen to get into property and build a portfolio but don’t have the time nor the education behind them of how to do it. These are the 2 things I do have!
- Build TRUST from the outset
If you don’t trust each other than the relationship is never going to work. When I ask a potential investor what the most important thing is to them in joint venture I will only ever get one of two answers; return or trust, probably with trust outweighing the return. So, although people invest to get a return on their cash, everyone wants to work with someone they trust!
For me, joint ventures are the best way to fast track your business and, done right, will set you up for a very long and successful career in property investing. If you have any comments or questions or would like to know more about how joint ventures can help you build your own property portfolio then please do get in touch. I respond in person to every message I get!