How to someone to Joint Venture with?

Question

All,

As you can probably guess, I am looking to close my first investment, but don't have proof of funds nor liquidity to put down an earnest money payment. I have significant experience in the syndication space (my old job as Director of Acquisitions), but have never had to raise earnest money and/or do a JV. Including networking, how can I find someone willing to JV?

Thank you in advance for any advice or resources I can read to educate myself!

-Corey

Scott Morongell · Answer

@Corey Walz find a great deal and you won't have a problem finding someone to JV. In the mean time, I would go to some of the weekend seminars or bootcamps to meet other operators that way when you get a deal it's an easier process.

Tom S. · Answer

@Corey Walz  Starting off I was about in your position, no downpayment funds yet.  But I was able to bring good credit to the deal.  Found someone willing to invest the downpayment, I put the loan in my name, and we split everything 50/50 after.  It worked for us and was a great start to the business.

Good luck,

- Tom

Theo Hicks · Answer

@Corey Walz Since you have acquisitions experience, you should find a money-raising partner, or raise money yourself from your current network, and start a syndication business. One of your investors could help you with the earnest deposit and net worth/liquidity requirements if needed. @Alina Trigub offered great advice on how to find this person.

Alina Trigub · Answer

@Corey Walz In terms of proof of funds and liquidity you need to find someone to be a KP on your deal which comes with a price of course and a piece of equity in a deal that you two would negotiate. How to find such people - you can use the search feature on BP to look for syndicators and/or you can join local REI clubs and network your way through to syndicators. Keep in mind, it will take some time to build such relationships, so work on this prior to finding a deal to buy.

I'd say, the same approach would apply to money raising step - finding the people either virtually or locally and then building the relationship with them.

Alternatively, instead of finding people for specific roles, you may look for a partner that will be able to offer what you're looking for in exchange for you to find and manage a deal. All subject to further discussions and negotiations.

Best of luck!

Joseph Burell · Answer

Corey,

Surprisingly, alot of my investors have literally come from the elevator pitch. People ask how I'm doing and I tell them I am doing real estate investing now. I tell everyone, the barber, the grocery lady, the waitress. If the opportunity arises for me to slip in a line or two, then I do and it has paid a plentiful amount of dividends. People know someone that knows someone that wants to invest.

How to someone to Joint Venture with?

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