TPP226 The recipe for successful joint ventures

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In this week's episode we're talking about joint ventures for the first time in three years.

They’re still a hot topic in property so we wanted to revisit and go into more detail. It’s the cover story in the next magazine...more on that later

What is a joint venture?

Often one person with skills/knowledge and one with money, but by no means always.

Why do it?

Generally you would embark on a JV to access skills/resources that you don’t have, e.g.

• You have the skills to do a flip, and JV with someone who has cash
• You’re a builder looking for a project, and partner with a local investor who has access to deals
• You JV with someone who owns land for a development project

What types of JV are there?

• Profit share: At the end of the project, you split any profit in pre-agreed shares
• Fixed interest: The partner putting in the money gets an agreed rate of interest, whatever the success of the project
• Which is best depends on who’s putting in what, the sophistication of the investor, etc

In the podcast The Robs take a look at why you might not want to joint venture, when could it be property investment disaster, and when is it just not worth the hassle.

But if if it is for you then we also discuss how to find a good JV partner.

News story of the week: More buy to let lending in UK going to limited companies

Limited company is now the dominant model in investment with over half of BTL lending by value now going to limited companies. Take a look at the story in full here. 

Join the conversation over in the forum

Have you had a good or bad JV experience, and what have you learned along the way? Join the conversation on the forum.

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