Why do experienced investors JV on notes?

[Leighann Davis]

Hi all - 

I see forum posts referencing JVs frequently as a good place to start for new note investors. 

My question is this - At what point is it "worth it" for veteran note investors to JV with a newbie? How much of those JVs are actually worthwhile from a business standpoint versus the veteran taking on a JV to "give back"? Is it worthwhile for the experienced investor simply because they're getting "free" funding?

I'm fairly new to note investing (and real estate investing in general) and am not accredited, however I have worked in investments (stocks, bonds, mutual funds, etc) for 6 years and actively invest in those arenas and am a CPA, so I'm pretty comfortable with financials/investments/risk/etc. (though I know note investing is a different game). My preference would be to "learn the ropes" from someone for my first couple notes but I would still want to provide value in some way and would want the transaction to be worth it to them as well. 

I would consider providing the capital for a couple notes and allowing the other investor to keep a chunk of the profit in exchange for being able to really learn the process. But is this something that experienced investors are actually interested in? Or would it probably not be worth their time from a business standpoint because of the time required to teach and relatively low volume involved? Or is it worth it to the experienced investor simply because they're getting "free" capital? What's the motivation for the experienced investor to JV?

(And yes, I've seen posts on the forums about the standard setup of the newbie providing the funding, the experienced investor finds/manages the deal, and then splitting profits 50/50.... but I've also read where some newbies were not very involved in the process and therefore didn't feel like they were prepared to do it on their own after that JV, which is what I would want to avoid. Learning/experience would be my priority.)

Sorry for the long post - just trying to understand the motivation from both sides. 

Leighann