In today’s property investing marketplace, getting mortgages and standard finance is slow, tough, often impractical and sometimes expensive.
The modern successful property investor uses other people’s money as leverage to build wealth, portfolios and income streams.
Most people don’t know where to start.
There has been huge demand for the articles and content below, and we have been helping 100,000’s of people to gain insight about raising finance in any market cycle.
Below are 2 articles that Rob wrote in the Progressive Property JV Portal & Forum, usually only accessible to people paying monthly subscriptions.
Enjoy both parts, and an insight into what is possible investing with other people’s money.
Part 1: How to structure a JV deal to overcome private investors objections & reduce their risk:
We all know that finance is THE BIGGEST objection for most people as to why they can’t invest in property
With finance getting tougher, Joint Ventures is one of the best strategies to bypass personal finance and continue to build a property empire whilst others are scratching their heads trying to get BM mortgages
I have already posted an article on JV’s on the site, and also recorded a very powerful 1hr 15min webinar on JV’s and pooled together some successful people on THIS VERY SITE who have raised cash and done successful JV’s
So in this article I’ll share with you some different structures for JV’s that you can use now to overcome finance challenges
P.S: ‘Challenge’ = opportunity while others fail. Problem = Fail like the others
*Straight JV: Time vs. money – you use your time and sweat equity as your asset, your JV partner uses their cash but little time. Top tip: They are looking at YOU, the PERSON, not experience, knowledge or proof [it helps just a little], so don’t use ‘not done enough deals’ as an excuse. Think James Caan’s 1st investment in the Den: a Dog Treadmill!!!
*IP JV: You use your knowledge & skills, your ‘Intellectual Property’ as your asset, and your partner uses their funds
Top tip: Your JV partner will be looking to you as an expert: the higher your status, the easier it will be to attract money
*MH/DoT: Using a ‘mortgage host.’ If you can’t get finance, or want to reduce the risk to an investor who has cash but is reticent to let it out, allow them to take the mortgage, reducing their risk to almost zero, and write a contract with them [Deed of Trust] to share or apportion equity, cashflow and loss. Top tip: This is great for family, friends or unknown partners as it overcomes their biggest objections of fear and trust
*TiC JV: Tenants in common JV: You buy the property equally with a JV partner, 50% each on title deeds: equally shared risk & reward. Top tip: Works well with straight JV & IP JV. Can show good trust to a PI [private investor] JV partner
*1 for me 1 for you JV: You source for yourself and your PI who is providing the cash. You source one for them for free first, then they fund your first one after that, and you continue. Top tip: Always source for the PI JV first, as this is great trust builder, and overcomes ALL scepticism & builds solid trust.
*Chalk & Cheese JV: You partner up with someone who has opposing skillsets: Dealmaker with analyst, techie with people person, and so on.Top Tip: Find your ‘Foil’ and your wealth will exponentially grow: a total must of you want leverage.
*Roll up JV: You borrow money at a % per month, invest it in property, and pay the interest ‘rolled up’ at the end of the agreed term and timeframe. Top tip: Offer full security [1st charge] on the property they are buying and the risk will be low and the deal attractive to the PI
Part 2: How and where to find private investors with money to invest [in You]
In response to my recent article on the JV structures for Property Investors, here is a resource of where to find your private or angel investors. Before you rub shoulders with millionaires, it is essential to know what you are looking for exactly. If you are looking for a chalk and cheese JV, or a business partner, it is not just about finding people with money.
I have a whole host of content on striking chalk and cheese JV’s on the Progressive Property Masterclass [DISC & VAKAd], for this article I am going to give you resources for finding cash and funding from ‘private investors.’
All of the examples below are strategies successfully used by Progressive and our students: so don’t dismiss ANY of them – ladies: you’ll know what I mean
1. Family – many of the investors on our £10,000 per year VIP Property Millionaires Club have started with their close family, with great success. You can assess how resistant/open-minded they are and use on of the structures in my previous article to best sell your proposition and reduce the risk
2. Early Inheritance – a variation on the above: money that family will eventually die on and not see the benefits of, and money that you or close family will be paying IHT on can be used much more effectively to the equal benefit of the private investor and you, the investor
3. Business Angel Networks – in no other room will you rub shoulders with so many millionaires per square foot! LBA is our favoured one that we attend regularly, and there will be business angel investing events across the country. Get there, go regularly, apply as an investor and network away
4. Charity Balls – a great place to meet wealthy people. It will be clear where the money is, and as the drinks flow and egos rise, opportunities to build relationships increase
5. Flying Clubs – Mark and I fly the helicopter and are members of a flying club, and we get to spend time with many people who are also very well off indeed. If you don’t fly it doesn’t have to stop you. Get a Bomber Jacket, some stitch on wings and go and have a cup of tea: all flying clubs I’ve been to are very welcoming
6. Property Networking Events – Because private investors can’t get returns on cash in the bank, they’re out there actively looking for investments. Property is a favoured investment class of most businessmen and Entrepreneurs and so you’ll find many ‘undercover’ private investors at property networking events across the country
7. Progressive Property Events – We actively promote JV’s at all of our Events, and as a result we attract many private investors. In fact we have had many millionaires and 2 billionaires at our 1 day events – keep coming back and meet new JV partners
8. Dating Websites [!] – One of our students [who swears this was an upside benefit and NOT a strategy!] in her single days would subscribe to the high end dating sites, carefully select the profile of the people she would want to meet, making sure they met the criteria she was looking for
9. Lifestyle Management/Concierge – Using a specialist lifestyle management service will enable you to get into the best events, restaurants and social occasions where higher net worth individuals will frequent
10. Business Networking Events – Tap into the world of business and network with people who have profits to invest
11. Property Membership Sites – Sometimes you have to look right in front of you Multiple JV’s are done on this site every week, and one of the reasons we set up the site in the first place
12. Launches, Functions & Openings – Think where wealthy people may regularly go and be, and spend time there building contacts and relationships
UPDATE: We have now released our very own 6 CD Set teaching property investors 11 strategies on how to buy property without saving for a deposit.