I'm currently considering working with one of the few companies I've found who would lend 100% financing for real estate flips. Most require a Minimum of 3 Flips/BRRRs in last 5 years (or a co-signer that meets those credentials). I have performed one purchase/rehab which I'm currently renting out. This occurred in 2018.
So, I'm asking should I go the route of finding a JV Partner With Experience not Necessarily $? If so, where should I start?
@Marcus Taylor I think experience is arguable more important that capital. Finding someone with capital is not that hard. Finding someone with good experience that is willing to partner with a new investor is tougher. If you do find someone willing to go that route, I would definitely take the opportunity to partner with them. The opportunity to learn from them is worth way more than capital. If you find someone willing to go the JV route, that is even better as they will have "skin" in the game and be more committed to the project success versus someone who only agrees to mentor you through a project.
The challenge will be getting an experienced investor to agree to this. Start by identifying what you can bring to the table. Two things come to mind, either find a deal and/or offer to manage the project for them. A lot of experienced investors have a limit on how many projects they can handle at once. If you can convince them you can expand this number, it may be worth their while.
You have to remember that Partnerships are equal sided meaning you are providing some sort of value to the partner either through Sweat Equity through knowledge finances Etc
I would suggest that if you are thinking of a JV route you really think about what it is that you have to offer and how you are actually adding value
I would also suggest that if you are thinking of the JV route you find out what value are they adding for you meaning if it's just money that's fine but what interest rate are you paying what are the rates and what are the expectations of the return and could you get the same thing from a bank?
Any kind of partnership is great when things are good discussing when things are bad and when things happen how they will be handled whose job is to do what task and Duty are the things that most people need to discuss but never do which is why most Partnerships end up failing or end up in some form of lawsuit or litigation
Thanks Steve and Zack. Excellent points.