Real Estate Wholesaling

4 Steps to Growing Profitable Joint Venture Relationships

Expertise: Real Estate Wholesaling, Real Estate Marketing, Business Management, Personal Development, Flipping Houses
65 Articles Written

Currently, I do between 30-40 deals a year. I do a lot of JV deals with other people via wholesaling and rehabbing. I don't really recommend it with all rehabs; it can be frustrating at times. However, if you are new to rehabbing, it could help you out a lot.

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In this blog post, I will go over some key elements to building a good JV business. These JV deals could literally add an extra 5 or 6 figures to your yearly income. The best part is that you don’t have to spend thousands on marketing to get them.

4 Steps to Growing Profitable Joint Venture Relationships

1. Be a Bona Fide Wholesaler

That’s right… if you say you are a wholesaler in order to get a nice amount of deals via JV a year, you must be someone who is actually closing deals in your market. Of course, you have the guys who talk a good game but are doing very little business. They are usually exposed in a few months. That’s why it’s important to be real and actually do deals.

Related: Investor Seeks Joint Venture Partner: How to Find the Perfect Match

I have had buyers on my list give me their houses they did not want so I could wholesale them. Of course, we would split the profit, but the reason they actually trusted me was because I was doing it and not just talking. Now, two quick ways to put yourself out there is to get involved with your local real estate club, as well as with BiggerPockets and post your success stories. Don’t be shy; they will help you out.

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2. Be Approachable

In every town you have you successful investors who don’t want to help, talk or spend time with anyone. This is a bad practice. My personality used to get me in trouble at work, but now as a business owner, it’s a blessing. I am an open, very approachable person.

I talk with people, and when I give local people my card, I tell them to text before calling because I am usually working on my business. They respect that, and I’ve never had any issues. I do not give my phone number to people on the internet in another market I am probably not going to capitalize off of. I stick to local investors ONLY. If they have basic questions, I answer them. I am not saying let them use you. Know when to draw the line. I tell them, “I can’t necessarily coach or mentor you, but if you bring me a deal, I will evaluate it and if it’s good, we can partner up on it.”

3. Take Time to Have Lunch With Other Investors

I have been extremely busy lately with rehabbing, prepping a rental, and trying to grow my business. A friend who does more business than me in another market actually gave me this tip. He said, be sure to go one lunch a month with someone who is more successful than you. I thought that was brilliant.

I’ve started to take lunches or dinners with local investors. I recently bought a rehab from a guy with whom I went to lunch who actually called me first. I will make $100k on that house (which unfortunately I’ll have to split).

Related: 5 Killer Tips to Find Joint Venture Partners and Cash Buyers

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4. Be Completely Honest

Most importantly, you must be a honest person. Meaning, if you say you will give someone half, you’ve got to do it. Word will spread around fast when you do the right thing. If you do the wrong thing, word will spread around faster, and you won’t have people lining up to do business with you, to say the least.

You never know a person until something goes wrong or money is involved. Just make sure you are keeping your word with people. If you know you owe a wholesaler $5k on a $10,000 deal y’all just did, go out your way to pay them. Don’t wait on them to contact you.

In conclusion, simply don’t be a stuck up, arrogant, no good person. If you do the right thing, it will come back to you when you least expect it. If you do the wrong thing, it will always come back to haunt you. Make this process easy by making the right decision he first time. And watch you wholesale deals explode.

Investors: What’s YOUR best advice on creating solid JV relationships?

Leave your tips below!

Nasar El-arabi has been involved in real estate for 12 years. During those 12 years, Nasar has wholesaled houses, rehabbed properties, built new properties, created a buy and hold portfolio, and fl...
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    Jesse T. from Herndon, Virginia
    Replied over 5 years ago
    How do you generally structure your JV agreements?
    Nasar Elarabi
    Replied over 5 years ago
    on wholesales just basically stating that we are splitting assignment fee 50%
    Account Closed Realtor from Orlando, FL
    Replied over 5 years ago
    TRUTH
    Nasar Elarabi
    Replied over 5 years ago
    thanks for reading
    Amybeth Hurst Professional from South Portland, Maine
    Replied over 5 years ago
    Great information, very informative for a “newbie” like me. Thank you for sharing your information.
    Nasar Elarabi
    Replied over 5 years ago
    no problem and thanks for reading
    Madan Anand Homeowner from Parlin, New Jersey
    Replied over 5 years ago
    Hi Naser Kaifhalk, I like your approach. One have to be transparent in JV Deals. If there is an issue call and discuss openly. I worked in Bahrain and Oman. In Oman I worked for a Big Fox. He was not a cheater but very shrewd kind of a Guy. In Bahrain I worked with One Highly Educated phalastini. Very honest, straight forward Gentlemen. he taught me Import Business. He was kind of a guy to call the customer whom he owe the money and pay right away through a person. I am interested in JV in my area. I am in New Jersey where in my nearest towns Million Dollar homes are going for half the price due to Tax Liens and auction. In my town there is a lot of inventory no buyers. People are running from NJ who so ever can. Most of the houses going for rent. Thanks for reading.
    Vinny G. Professional from Freehold, New Jersey
    Replied over 5 years ago
    Let’s connect Madan!
    Nasar Elarabi
    Replied over 5 years ago
    thank you for reading. As far as your market it does not seem like many people can play in that price range. However if you get the right funding or buyer it could be a good niche for you..
    Madan Anand Homeowner from Parlin, New Jersey
    Replied over 5 years ago
    If U check Morganville NJ on Google. million $ Properties R going for half price. Reason Corporate World squeezing their belts and moving to Texas. People lost jobs N can’t afford expensive living. I do’t have funding to go for these deals. But have a experience guy (Zoning Laws), can help. If someone interested.
    Michael Askew Wholesaler from Charlotte, North Carolina
    Replied over 5 years ago
    Great blog Nasar!
    Bryan Bewick from Austin, Texas
    Replied over 5 years ago
    Great tips especially for a newbie like myself. Thanks for sharing. Keep them coming.
    Earl I Thompson Realtor from Ft Lauderdale, FL
    Replied over 2 years ago
    Great post!
    Klassik Nelson from Griffin, Georgia
    Replied about 2 years ago
    awesome post! That’s what i am actually looking for to partner up or group up with people to do deals but how would i start to protect myself? meaning making sure we split the deal