We live in the information age. Google gives us information on any subject, anywhere anytime, all with a quick tap on our phone.
Access to information is no longer the limiting factor in life that is used to be (remember having to read actual books in an actual library to learn stuff once upon a time?).
We are awash with information and ideas yet have no time to do anything with them.
So whilst the value of information and ideas has fallen through the floor, the value of implementing ideas in our time pressed world is now more valuable than ever.
This post is about the easiest and most effective way to implement a property investment strategy: by finding a partner to joint venture with.
We started our first joint venture (JV) precisely to help people benefit from property with a minimal commitment of their time.
They’re busy people with their own businesses and family to focus on. Success comes to them by focussing on what they do best, not by spreading themselves too thinly.
Finding a partner to help them develop a plan and implement it is hugely valuable to them. To us it’s a way to keep doing what we love doing: creating excellent properties. Together we generate returns that benefit both parties.
I’m going to set out the 3 key benefits of a joint venture:
1. Leverage time and expertise
The #1 benefit of doing a joint venture is the ability to leverage other people’s time and expertise to mutual advantage.
Of the various specialisms that contribute to a successful property investment – finance, construction, accountancy, etc – we can claim to be expert in exactly none of them.
We don’t need to be- we know who the experts are and gladly pay them to work on our behalf.
What we are good at is understanding how to deliver a desirable product to our target market. Knowing how to make sure all the other experts work together seamlessly to get the job done.
We leverage the time and expertise of experts.
Our investors leverage our time and expertise.
The saying goes ‘it’s not what you know but who you know’. Well I say, it’s who they know as well.
When you partner with someone you not only add them to your network, but potentially gain access to their wider network as well (and vice versa).
If you can help and contribute in a meaningful way, the more opportunities you can become exposed to whether direct or indirect, and the more potential you get to learn and grow from their network.
Knowing what not to do (or when not to do it), is as important as knowing what to do (or when to do it).
I wouldn’t like to add up the hours we spent (read: wasted) doing incredibly simple tasks when we first set out. But back then we had the time to be able to waste, plus it was all a fun learning curve and we loved the process.
Wasting time on inefficient ways of working nowadays is simply not an option.
‘Systemised’ is an overused phrase, but systemising your business processes is essential to maximise the value of your time.
Efficient, repeatable and consistent ways of working keep things simple (meaning less stress and more time) and scalable (allowing more growth).
What exactly am I talking about? Sourcing properties; analysing the financials of potential investments (accurately and consistently); managing construction; finding and vetting tenants; managing properties; refinancing; the list goes on.
Without wanting to sound cliche, working smarter is as as important as working harder.
And the best way to benefit from tested, efficient processes? Use someone else’s!
Shortcut the time and pain of working out the more effective and efficient way of doing things by partnering up and benefitting from their experience.
Long term prospects
A joint venture could be short term affair focused on one project, but they’re most productive when they’re a long term partnership.
The key is developing a partnership where both parties have a vested interested in it’s continued success.
This way you both remain focussed on a successful outcome.
Now they certainly shouldn’t be entered into lightly. Due diligence on both sides should be thorough and it has to be built upon mutual respect, trust and a shared goal.
But done right, they are one of the most effective ways of creating a successful property investment.
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