How to Find Your Ideal Joint Venture Partner or Lender
Joint Venture Partners
One of the things I talk about all the time when I’m on stage giving talks about raising money, in our workshops or our live training about raising money for deals is; What you need to focus on when finding your ideal investor. I do this for two reasons. One is because it takes the focus off finding the money and kind of puts the power back in your shoes, right? Cause you’re no longer looking for money, you’re looking for somebody that is a great fit. And of course it’s critical to find somebody who is a great fit because if you don’t, it’ll be a pain in your butt. It’s very important to do that and it’s something a lot of people don’t do!
Many people think, I need somebody with money and then they can give me the money for the deal so I can buy more property. But there is more to it, you want to find somebody who’s a great fit and everything gets easier if you do that. But how do you know what is a great fit? It can be really hard to think about that and figure it out.
So here’s what you do.
- Take out a piece of paper,
- draw a line down the middle.
- One side will be for what you DO want.
- The other side will be what you DON’T.
All you’re going to do is make a list of everything do and don’t want an investment partner. So when we did this, we thought, okay, well we don’t want somebody who’s active. We want to be the only cook in the kitchen. So dinner turns out perfectly. We don’t want somebody who is an active investor. We don’t want somebody who asks us a billion questions. We don’t want somebody who only has a small amount of money. We don’t want somebody who wants their money out quickly.
Those are kind of things we started to write. And by doing that, we’re able to very clearly see who we do want. For example, we want somebody who’s hands off, they don’t want to be involved in the day to day decisions. They’re going to rely on us in our expertise and experience. To do that, we want somebody who has the financial capability of doing multiple deals. We don’t want this to be their last $50,000. We want somebody who can afford to do multiple deals. We want somebody who will ask some good questions to make sure their investment is secure, but they’re going to trust us and rely on us to make the decisions. They’re not going to challenge every little thing like, why did you buy that dishwasher?
So once you go through and you figure out what you don’t want, you can clearly figure out what you do want. Once you know what you do want, you’re able to sit across from somebody and ask really high quality questions to figure out if they’re a fit for you to work together. You can ask them, have you ever invested in real estate? Do you currently? Why or why not? Right? Find out if they’re active investor, what are you looking for in an in an investment, right? Do they want to be hands on? Do they want to be involved? Those are some of the questions that you can now ask because you know what you’re looking for, so hopefully that helps you raise money for your deals.
Finding Your Ideal JV Partner Resources
Go to local real estate events and start talking to people, build relationships and get to know them. A lot of people jump into a real estate deal with not much knowledge about a personal behaviors.
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