opinion

Why should you consider a joint venture?

By Mark Rooney
0

blogsmallThe answer is simple: if you want to buy into a good deal, and you don’t have the capacity in one way or another to complete it, then finding a joint venture partner can provide the missing link to enable you to close the deal.

Blogger: Mark Rooney, Investinus Group

It will mean that you’ll have to share the proceeds of that deal, but the philosophy is that wouldn’t you rather have 50% of something than 100% of nothing. In short, joint ventures can accelerate the potential to grow your property portfolio faster.

Joint venture partnerships have been fantastic for many people. They’ve allowed many to accelerate the growth of their property portfolios when the possibility to build further on their own was difficult, usually due to financing or putting enough of a deposit down or they had little or no more equity to use as deposits to buy property.

The biggest issue that many have in growing their portfolios is enough equity. The problem I had personally, however, was that I kept running out of equity, even though I had borrowing capacity. This is exactly the point where investors who are looking to further build their portfolios come into different issues. Do they hold on and wait for some equity to be created in their property portfolio, this can only occur in a growing market, unless they can pay-down some of their loans against these properties. If these two issues are not happening for them then unfortunately they are unable to continue to keep building their portfolios.

Very similar to say a business that has the opportunity to grow but is lacking the funds and or cash flow required to grow. This situation requires the business to think more strategically to grow. Does the business focus on reducing its costs then hold out to grow some more cash savings to capitalise on the opportunity… in doing this it can miss the very opportunity it is looking to take. Or does it look for a partner to help it fund its way through to capitalise on the opportunity or to help get the business to next level. The same for investors who are looking to get to the next level, what do you need to do to help you create some cash or extra cash flow to help you fund the next property in your portfolio.

There’s nothing worse than having the desire to purchase more properties without the means to do it. Property is a long-term strategy and I understood that you need to wait patiently for capital growth to happen before you could buy the next property, but I felt I encourage you if you do your homework and build a solid business relationship with the people you may like to work with to do a project together then you may just well over come the biggest hurdle that nearly all investors in property have at some point or another. If you are interested feel free to connect and I can give you some ideas.


About Mark Rooney
blogbig

Mark first found out about the advantages in the U.S real estate market in February 2002, whilst on a business trip to Canada and the U.S.A. For the next 4 years Mark researched the U.S real estate market and looked for opportunities to build further relationships with people. Over the next few years Mark gained an understanding of the various cities and what investment outcomes they provided a foreign investor.

In 2009 Mark was asked to assist others with purchasing property in the U.S.A. This was the initial beginnings of Investinus Group, whose focus is ensuring that their clients have a safe and secure investment in U.S. real estate. 

The group aims to build strong relationships with their clients and the people who work with them, suppliers, property managers, attorneys, accountants and developers.

About the Blogger

Mark Rooney

Mark Rooney

Mark first found out about the advantages in the U.S real estate market in February 2002, whilst on a business trip to Canada and the U.S.A. For the next 4 years Mark researched the U.S real estate market and looked for opportunities to build further relationships with people. Over the next few years Mark gained an understanding of the various cities and what investment outcomes they provided a foreign investor.

In 2009 Mark was asked to assist others with purchasing property in the U.S.A. This was the initial beginnings of Investinus Group, whose focus is ensuring that their clients have a safe and secure investment in U.S. real estate.

The group aims to build strong relationships with their clients and the people who work with them, suppliers, property managers, attorneys, accountants and developers.

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