How to find a JV funder?

2 Replies

Are there anyways to find lenders/investors that would allow me with no rehab experience or money down to bring them the discount deals I find in commercial/residential real estate while allowing me to work under them during the rehab and selling process. Since I'm way more focused on gaining experience I would like to negotiate a small fee when the deal closes or waive/lower my assignment fee? 

I've found that you can compensate for little experience/capital with a well defined plan. You will also find that in making that plan is really where you start to gain your experience.

So, create a clearly defined business plan. I've convinced lenders to invest their money with me even though I have little experience/capital because I brought them a clear plan that showed :

How much money you will need (based on your homework, talking with other investors, agents, etc). Include comps in close proximity, similar condition, etc to the property you are interested in that have been recently purchased.

How will the money you receive be utilized - (How much will you need for acquisition, closings costs, rehab, maintenance, marketing, disposition etc). Really break this section down because it will not only show them you are understand what you are doing with their capital but also help you to realize what you need to do as well.

And (most importantly) how will you be getting them their money back (selling, refi, etc). Include comps close in proximity, similar post-rehab condition, that are on the market or have recently sold. Include a contingency plan. What happens if you try to flip and it doesn't sell at the price you though it would and you have to hold longer than expected. Have multiple exit strategies.

I've done this even though I didn't currently have a deal in the works. I brought investors a plan that showed "Hey, I don't have a deal just yet, but when I do it is going to look very similar to this." Having your plan in place will set you up for success with every deal.

If you really take the time to do this I think you will find people that will be interested in helping you.

@David Ziccardi

 thanks for all that info.  My goal going forward is trying to find a way to form the strategy you spoke of because I find a lot of deals commercial/residential some turnkey some wholesale. I really want to have small equity in the deals I bring that are multifamily