Investor · Portland, OR · Member since 2014 · 354 posts · 149 votes
I am fresh to the market, have spent my due diligence studying, learning the craft, and building a team, and now I am looking to find the last and probably most crucial member of my team.
The Money Partner
Here is my question: if I can present a business plan and strategy with comps, projections, market research, and the exact type of deal we are looking to close, is this sufficient in providing them with the knowledge and assurance of our skill set? The value we bring is the ability to search out deals and build a team to ensure a high yeild lower risk investment opportunity for a joint venture partner.
Or, are the more interested in seeing a history? If so, is there any advise on how to reassure with limited history? I am not interested in wholesaling, flipping, or SFH deals as they are apples and oranges in the REI world.
Investor · Chicago, IL · Member since 2013 · 2k+ posts · 1k+ votes
12y
One thing you can do is partner with an experienced apartment investor. You do the work, he teaches you what to do - and you can leverage on this experience and expertise when raising money from private investors. By doing this, your lack of experience won't matter.
Investor · Philadelphia, PA · Member since 2012 · 257 posts · 68 votes
12y
Hi Michael,
Having a business plan and providing all the info you mentioned is the minimum we all can do. From my point of view, JV is all about relationships. Your background, experience, skin on the game and of course the numbers...will certainly influence the JV process.
Investor · Portland, OR · Member since 2014 · 354 posts · 149 votes
12y
@Andresa Guidelli we have a 2-5 year exit plan expecting an 100-125% ROI. This is based of the type of places that we are targeting at the moment and the numbers that we are looking at for the local market.
Then we plan on 1030 exchanging that into a larger complex.
We are looking for the deals, but what we would like to avoid is having to setting for selling the contract vs finding a JV partner due to the fact that we are new to the REI industry.
We are hoping that some people with experience can give us some insight on what else we can add to inspire confidence in those we approach.
Investor · Chicago, IL · Member since 2013 · 2k+ posts · 1k+ votes
12y
One thing you can do is partner with an experienced apartment investor. You do the work, he teaches you what to do - and you can leverage on this experience and expertise when raising money from private investors. By doing this, your lack of experience won't matter.
Leverage someone else's experience as a guarantee to the money partners that a seasoned investor is "looking over our shoulder" and giving credence that the deal is worth investing in.
Thanks!
Any other creative ideas to inspire confidence in private money investors?