To JV or not to JV? That is the question.

To JV or not to JV? That is the question.

Investor · Midlothian, VA · Member since 2015 · 305 posts · 199 votes

I see people form partnerships all the time; some temporary, some permanent. The trouble I see with so many partnerships is that partners are not always bringing something different to the table. In Real Estate we can be very transactional, which is fine. You can JV with someone for one deal and then the partnership naturally dissolves upon completion of the deal. If it went well, you could do another deal together and have an additional temporary partnership. When you are looking for a partner, whether on a deal or a business venture, I highly recommend bringing someone in with a different set of asset. It can be a skill set, it could be something as simple as money, or it could be a built up system you wish to leverage. One partner brings the money and the other brings the deal. That is a productive partnership. One partner brings the deal and the other brings the skills, system and experience to make it a deal that sees everyone get paid. That kind of partnership works well. Choosing a partner because they are a friend is probably not the best idea. Especially if the friend is like-minded. Why would you bring that person in as a partner? If the honest reason is because you are scared to start a venture on your own, then you need to take a hard look in the mirror and decide if this is for you.

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  • Specialist · Richmond, VA · Member since 2020 · 13 posts · 8 votes
    6y

    I couldn’t agree more @Account Closed, very well said! I typically like to partner with those who want to bring money to the table but don’t have the time or knowledge to do so on their own. Then I bring my experience and ability to actually get the deal done, and we all walk away happy since it wouldn’t have happened without both parties. I’ve seen people form long term partnerships that did NOT work out well, so it is nice in RE that most deals are relatively short term and therefore you can reevaluate the expectations each time, and make adjustments as needed since life changes too. On a side note, I’m definitely looking forward to attending some meetups in the future once the pandemic passes to meet new investors and form new relationships. Thanks again!  

  • Investor · Midlothian, VA · Member since 2015 · 305 posts · 199 votes
    6y

    @Brady Johnson Absolutely. The meetups really help with the connections to foster those relationships.

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