@JohnGesa Still not bad at Prime - .5 to .9 though. They are calling for rates to stay steady over the winter
Joint venturing, or forming strategic investment alliances, is a powerful way to take your investing to the next level. When considering a joint venture, there are a number of things one should take into consideration, the first of which being their reasons for wanting to joint venture. There are three main reasons to joint venture in real estate investing, which are to gain experience, money or time.
Those new to investing can benefit from a joint venture with a more experienced investor by finding an investor willing to joint venture and then offering to work for free. This will get the investor the experience they crave and provide “on-the-job” learning, so to speak, to help them move to the next step of their investing trajectory.
Some will choose a joint venture because they want to invest in higher purchase price property but can not get the financing they need, or do not want to over-extend their personal financing for the sake of their investing career.
A joint venture is ideal for these types of investors, allowing them to acquire property they otherwise would not have been able to obtain. This type of joint venture is not recommended for those just starting out. Before you search for a joint venture partner for the sake of money, make sure you get some experience first.
Busy investors or those who invest part time while working full time can establish a joint venture that will allow them to invest while being short on time. In this partnership they don’t have to be the person managing the investment, but they still have the chance to invest and make fantastic returns.
Joint venturing can be the key to investing for some, but joint venturing is not for everyone. Those who do not work well with others, are control freaks, perfectionists or have a short temper may not want to embark on a joint venture. When jv’ing, you will have to work with others who will probably do or say things you don’t like at some point. If you are unable to deal with others in a diplomatic way, joint venturing may not be right for you.
People are faulted, which means you have to choose your joint venture partner(s) very, very carefully. When entering a strategic alliance, you are putting your money and reputation on the line with another. If that person is unprofessional or lacks knowledge, your reputation (and your return on investment) can be in jeopardy. Make sure you know your joint venture partner well, and understand what motivates them to invest. If you can, start with some smaller deals and then work up. It may take some trial and error to find the best joint venture partner, and it is best to “try someone out” on a smaller deal.
Whenever possible, don’t mix business with pleasure. Keep your strategic alliances professional, and avoid joint venturing with your close friends or family unless you are absolutely sure you can work with that person effectively and talk through conflicts without it hurting your long term relationship.
To joint venture is a business decision that is not to be taken lightly, but done properly, a good joint venture can be very powerful, and catapult your investing to the next level.
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