JV note investors-how’d you find your first deal?

9 Replies

I've met most of my JV partners at conferences like paper source and note expo. I've found networking to be one of the most important aspects of the note business.

I had become interested in notes in 2015 and was following the topic here on BP. @Bob Malecki was, and still is, a frequent contibutor here as well as a speaker at note industry events, so I got in touch with him. He was willing to generously and freely share his knowledge about note investing with a newbie, as have so many others subsequently (thank you all). I funded a JV through my SDIRA with him on a note in 2016. That note is performing at a good return and the JV is still in place. I have been in other JVs since then, all satisfactory, but Bob's systems and organization are by far the most structured and transparent with full on line access to all files and records. As a reminder, I would encourage anyone to conduct adequate due diligence including background checks before entering a JV or sending money to a note investor/JV partner. My experiences have all been good, and I believe the vast majority of people investing in notes operate with the highest integrity, but there are cases where the operating JV partner has apparently not fulfilled their obligations or promises to the money partner, so stay aware.

Thanks @Charles Campbell I appreciate your acknowledgement. I've always found that transparency and focusing on positive outcomes works best for all.  @Michelle Burdo there are many other note investors like me with similar JV programs. As I mentioned previously, networking will be your best resource. Attend conferences and spend a lot of time in the hallways talking to other investors. Attend seminars and read books like Paper Profits to learn how notes work so you can interact with your JV partner from an educated position.

My first note was purchased with @Chris Seveney , after we had begun communicating through BP. Since then we have worked rather closely and he has helped me tremendously with my own note journey. I have nothing but positive things to say about the JV experience, even though we are still working toward the exit of the deal. He is very communicative and trustworthy.

I've had quite a few JV partners. Most of those were all prior relationships, which is an important aspect to consider. Soliciting for money to invest in your note projects can raise the scrutiny of state and federal securities regulators. Be sure you have a pre-existing substantive relationship with potential JV partners.

@Michelle Burdo

My first deal I used my own $. I work in real estate so I was comfortable not having to JV. As others mentioned this business is all about relationships and takes time.

If you are looking to fund a deal to a JV check some recent posts on here for proper due diligence on someone

For my first potential note, it is through attending multiple networking and meetup events.

I also met my great mentor here in BP, he has been showing me the ropes and encouraging me to network.

My first dozen deals or so I used my own company's capital.  Once I gained enough experience and confidence, only then I felt comfortable bringing on investors.   The majority of which have sought me out.  

I merely have conversations with almost everyone I meet and succinctly describe what I do, and given this specialized niche is very intriguing, people can't help but inquire more.