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Hi 

 

I'm Laura and I'm new to the Property Hub. 

I've been training in property for about 18 months with my mentor (my background is in project management). 

 

I wondered if anyone had any good tips on how to find JV partners. I've been attending a lot of property and business networking events but so far haven't found anyone to work with. 

 

I've secured a piece of land using a purchase option and am currently applying for planning permission. If all goes to plan I'll need a JV partner in approximately 6 months time. 

 

Any tips anyone can provide would be much appreciated. 

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Morning Laura, 

 

Great to have you on the forum and it already sounds like you know what you're doing, as you're already familiar with putting options in place. With regards to Joint venture partnerships. My main view would be to make sure you have clear goals as to who you want as a partner, so weather that is a particular skill set or type of person to work with. 

 

@richard brown you have given great advice on this in the past, what would be your advise?

 

I hope that helps and anything else, just ask. 

 

Cheers

 

Phil

 

 

 

 

 

 

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Thanks Phil and hello Laura

 

Raising funds for our development activities is a skill-set that we need to hone if we are to reach our full potential as developers.

 

OK, so there is an iceberg effect going here! Firstly, what is above the surface...which I have summarised below.

 

There are 6 main aspects to consider when it comes to joint ventures:
1. The JV partner (who they are, their reputation, track record, experience, standing, etc.).
2. The project (it's viability, comparable & underlining evidence, the business plan, different exits, contingencies, etc.).
3. The commercial arrangements (the timings, numbers, risks, profit shares / returns, etc.).
4. The legal and other written basis of the agreement (loan agreement, JV agreement, declaration of trust, buyout, deadlock, etc.).
5. Your security and protection (legal charge, guarantees, LTV, etc.).
6. Your advisers (solicitors, accountants, other experienced consultant advisors in such matters, etc.).

 

Your pitch needs to address all of these issues.

 

Then, there is below the surface...what often goes unseen, which is more about psychology, positioning and perception than anything else. I can't really tackle all of this here, but I can give you a steer as follows.

 

Psychology - do you believe you will raise the funds for your development opportunity, do you understand that you have a lot to offer a potential JV partner and do you genuinely have the values that you would place the partner ahead of yourself in terms of making sure they get their money back out? These are just questions that help you understand what goes on in your own mind and the mind of the JV partner to help you have the right approach and mindset.

 

Positioning - building on the psychological element, are you approaching things as someone desperately looking for funding or of someone with a great opportunity to get involved with? Do you ask for money or do you share your journey and project stories instead? Do you seek to understand before trying to be understood (Covey)? These are just some examples of how to position how you talk to people.

 

Perception - once again, we are building on the previous two points...is Laura another development newbie fresh out of a property training programme / mentorship looking for money, or is she a professional developer with a great investment opportunity with limited ability to get involved? This is all about how your are viewed by the counter-party to the conversation and so is the result of the first two points. I would actually ask some of the people that you have previously connected with to give you some honest feedback in how you came across. This is not only valuable for you to learn from but also places you in a humble and vulnerable position...and you might be quite surprised at the results, let's just say that.

 

JV partners operate in different ways and there is usually someone for everyone. Some people actually like to work with the newbie, as long as they are a grafter and  obviously are trustworthy for example. Others want to make sure that they are working with someone that has a great track record but can fully securitise their position strongly as well. The main thing to do is to understand yourself and what your core values are, then showcase these, be professional in your approach, put your best foot forward as I once heard from another developer and most of all...be yourself. Like attracts like after all.

 

Blimey, I only intended to say a few words here! Hope that helps.

 

Best

Richard
 

Richard W J Brown a.k.a. The Property Voice

Property Investment Strategist

10%+ ROI property deals every week: check out PROPERTY DEAL TIPS
Amazon best-selling author Property Investor Toolkit & #PropTech, YPN Magazine columnist & PODCAST host

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