Joint ventures (JVs) get talked about a lot in property, with good reason: after all, if you don't have the cash to do all the deals you want to do, a JV is a way of solving that problem without going cap-in-hand to the bank.
But where do you even start with finding someone who might want to lend you money? How do you structure the agreement? And what happens if something goes wrong?
In this episode I'm delighted to welcome Jay Booth back to the podcast, to talk about how he's made JVs work for him – and his friends and family. Jay was on the show earlier in the year talking about how he bought and refurbished nine properties in a year, and in this follow-up chat we get into how joint ventures fuelled some of that rapid expansion.
Listen to our conversation and learn:
- What Jay's model is, and what was holding him back
- How he approached his first investor
- The way he structured the deal (and decided how much to offer)
- How he got the agreement drawn up
- Why his first JV worked brilliantly for his partner…but not so much for him!
- The several different types of JV he's used
- What conversations he has with his partners before he lets them invest, and what questions they ask him
- What to be aware of when combining JV funds with a mortgage lender
- The advice Jay would give to someone interested in raising money in this way