Asking Seller to JV

[Natalie Gelbke-Mattis]

Looking for feedback on an approach to help grow my hospitality portfolio. Instead of discussing the possibility of owner finance with sellers - what if I offered the opportunity to JV where they are the equity partner? In the assets I am considering - the seller is typically selling because they no longer have the time or energy. I have the credit, experience and the knowledge on how to underwrite the deal to show their ROI in this arrangement vs a traditional sale. The seller will always retain the equity and would receive annual distributions - and could structure the agreement with an exit strategy that makes them comfortable. I recently analyzed an asset of vacation cabins - where the seller would earn 23% ROI over a 5 year term. Is my out of box thinking not make sense and be a waste of everyone's time?