Joint Ventures and Partnering
A joint venture (JV) is a business agreement in which parties agree to develop a new entity, by each party contributing assets, equity, skills, experience and power team. They exercise control over the enterprise and consequently share revenues, expenses, assets & profits.
We carry out a full risk assessment on every site before we consider purchasing it with the main focus being on the completed properties. We want to know four key things:
- What the property is and will be worth?
- What are the renovation/development costs?
- What demand is there for this specific type of property in the area?
- What rental income is achievable?
Knowing the above I can deduce the following:
- The approximate profit potential for renovating/developing and re-selling;
- If the property doesn’t sell, will it make a good rental property?
- If we retain the property for rental, will I be able to re-finance it to release our partners’ capital and profits?
Profit Strategies & Returns
When a property is purchased, the property is either sold, or it is re-financed with a buy-to-let mortgage by us or the JV investment partner, releasing original funds and possible profits. Having the re-financing option ensures an exit strategy for my partners, even if the property doesn’t sell. It is for this reason that we ensure the figures work for this option at the point of original purchase.
Our focus is to make a minimum of 10% return on investment for my partners. If we think we cannot achieve this when initially viewing and analysing a site, we won’t look at purchasing it. Although profits cannot be guaranteed, by undertaking an in-depth analysis on the costs to purchase the site, the development costs and the final sale price of the property, we will have a clear indication of the returns a project should make. Although 10% is my minimum target, my focus is always to create more than this.
We believe that property is and always will be one of the most secure investments you can make. To become a Joint Venture partner of ours, your commitment is simply to discuss your needs, targets and then invest funds in properties that we will source. Our commitment is to find and acquire the site, build/complete the project and finally to sell or let the property, releasing your capital and our profits.
At the very beginning of the partnership the percentage split and details are secured before any properties are sourced and purchased between us and joint venture partners. We give regular updates and photos on each property so you can see how things are going. Each investor has the opportunity to come and view the property prior to any purchase.
Benefits For Us
The benefit to our partners is that they get access to our immense knowledge of property investment and experience of producing profits from property. Our joint venture partners are able to get on with their everyday life in the knowledge that their money is working hard for them, without them having to learn all about property or take valuable time out of their schedule.
Another benefit to partnerships is that I can undertake more properties than we would have otherwise been able to do, with the extra funding from our partners. This arrangement is a win-win scenario creating more profits all-round.
Please Click Here to see some of our previous deals or contact me directly with any questions you may have.
They say, don’t work for money but let money work for you. If you have “Cash” in bank and that your cash isn’t working hard for you, then why not Joint Venture Partner with us?
As inflation devalues Cash, then Cash should always be working. By working with us, we put your money to work all year round in our investment property business to give you a much better rate of interest.
*All investment are Asset Backed
Ready to JV
If you’re ready to go ahead or would like to arrange appointment to get started buying investment property, then contact me now by filling in your details below.
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