Joint Venture partnership 101

Did you read last week’s blog on how to leverage PMLs to fund your deals?

If not, it’s a must-read if you’re looking for ways to NOT put down your own capital.

But, what if you have a bigger deal that requires A LOT of capital?

This is the perfect scenario for a joint venture partnership with other investors — and it’s a great way to scale especially with multi-family properties.

As a reminder, these are the 4 areas of focus when investing in multi-family:

- Finding & Underwriting deals

- Finding the capital 

- Financing/Credit/Net Worth

- Operations/Asset Management

If you’re an expert at finding & underwriting deals, but lack the capital or net worth to qualify, then a partnership can help in these other areas.

What do Typical JV Partnership Splits look like?

Partnership splits are very deal-specific.

Most equity typically goes to the partner managing the deal. Then to the finding & underwriting. Then capital. And finally, net worth.

So, how do you start?

Step 1: Make a list of 20 potential PMLs or partners. Start with friends and family.

Have conversations around partnering on deals, or having a private lender on your next deal.

Step 2: Create a pitch deck highlighting your experience.

The partner for your next big deal might be closer than you realize.

Step 3? Well, you’ve got two options…

>>> Curious about out-of-state investing, what kinds of deals are out there, and how we can help you? Get all your investing questions answered during our next Out-of-State Investing Consultation call.

>>> Want to net $20K+/month from cash-flowing investment properties? Learn how to live your best life funded by your investments.