Having a joint venture partner can be extremely beneficial – not only do they bring in additional capital to the table but also they have their own unique set of skills, knowledge and expertise that are quite useful in the long run – thus resulting in bigger profits.
So how do we find a joint venture partner?
Here’s a list of the best places to find them:
- People you know – Close Friends and Family
These are the best people to have a joint venture partnership with, as you can trust them and you are familiar with their strengths and weaknesses. There is also a better level of cooperation, loyalty and commitment, all of which are essential prerequisites to have in a good joint venture partner. Having someone you know as a joint venture partner reduces the risk of being deceived and defrauded.
- Social Media
Social media is a resourceful platform to search for the perfect joint venture partner. Sites such as Facebook, Twitter, LinkedIn and Google+ are a few good sites that connect you with the right people – all you have to do is search. You can also post on forums such as Property Tribes or even start your own blog.
A key advice here is be truly open and honest about yourself and your portfolio – what you have done in the past, what you’re currently doing and what exactly you hope to gain in the future. Shying away or lying about yourself won’t get you anywhere in the long run.
- Networking Meetings
There are meetings set up solely for the purpose of finding joint venture partners. Just like dating, you won’t land the right one on the first night. This requires a lot of patience and effort; you need to be active in the community.
All in all, networking meetings can be really useful for you as a property investor. Even if you don’t find a joint venture partner for yourself in these meetings, you’re definitely prone to making connections that will surely prove to be beneficial in the future.
In the process of finding a joint venture partner, it’s important that you keep in mind the following:
- Clear objectives and goals
You should have clear objectives, goals and a well-organized plan that you can pitch to the right partner once you find him/ her. You need to be seen as credible and dependable – someone who knows what he/she is doing. This provides confidence for the partners who are interested in teaming up with you.
It is vital you convey your requirements and objectives to the potential partners and you also understand their position, so all the parties are on the same page. You should also discuss and assign the roles and duties of all the partners before starting a joint venture.
- All legal forms
You need to put everything in writing before entering the joint venture to ensure that every partner is aware of his or her position in the venture. Having a legally binding agreement lessens conflict in joint venture partnerships and can also be favourable in unanticipated cases such as divorce, bankruptcy and/or death.