From personal property joint ventures and watching hundreds of deals through the Progressive Community, there is one common theme among all the deals.
It’s the one thing, above all else, if you can offer, will set you apart.
More importantly than the returns. More importantly than like-ability and more importantly than any JV structure.
Do you know what this is?
It’s quite simple. It’s
The majority of the deals rest with this one thing.
If you can solve this concern early on, and show them how their money will be water tight, not only will this demonstrate your credibility, you will be able to fund more deals than you can imagine.
It’s pretty simple right?
Can you imagine a high street mortgage lender offering you a mortgage of £100,000 on an IOU or an unsecured basis?!
They would soon be out of business.
So why should a potential partner feel un-easy about lending you money?
And how do you solve this concern?
Security and Private Money
Put yourself in the shoes of the investor and think “how can I reduce their risk and increase their security”. This is absolutely vital.
Finding great deals and showing strong competence, goes very much hand in hand. Like Batman and Robin, Tarzen and Jane and like peanut butter and jelly.
A great deal without knowledge, competence and the inability of overcoming any concerns in the eyes of the investor is the single biggest threat that can kill any hope of raising finance.
The deal will turn sour if the person in charge is not 100% capable of overcoming the investors concern.
So how can you answer this?
1.The property is under the name of the private investor: This is the most likely way an investor would want security to use his/her money.
2. You own the property under your name [your own personal Property or the Property bought for the JV] and the private investor takes a charge or restriction over it.
You see, the best way to increase JV knowledge is to learn and read more. Study more and network more.
If you are having trouble raising money, and are being turned down or rejected by everyone you approach, you’re probably lacking in more areas that you need to address. Such as asking the wrong type of people. Or not knowing how to ask properly.
Don’t try to convince yourself otherwise. Get it?
What are you doing right now to become a better investor at raising finance?
Whatever your answer is…go post it on our private Facebook community here
Seriously, do it now. We’ll wait. And while you’re over on Facebook, be sure to “Like” the Progressive Property fan page
Hopefully you can see once you overcome any concern or objection, it’s relatively simple to raise JV finance.
Yes it might be easier said than done. Especially if you’re just starting out.
But if you keeping growing as a person, learning and expanding your property relationships, you’ll have no trouble raising finance to fund your property purchasers.
Continue being great at finding deals and partners. Enjoy learning. Progressive Property exists for this one reason – so take advantage of it.