Did you read last week’s blog on how to leverage PMLs to fund your deals?
If not, it’s a must-read if you’re looking for ways to NOT put down your own capital.
But, what if you have a bigger deal that requires A LOT of capital?
This is the perfect scenario for a joint venture partnership with other investor — and it’s a great way to scale especially with multi-family properties.
As a reminder, these are the 4 areas of focus when investing in multi-family:
- Finding & Underwriting deals
- Finding the capital
- Financing/Credit/Net Worth
- Operations/Asset Management
If you’re an expert at finding & underwriting deals, but lack the capital or net worth to qualify, then a partnership can help in these other areas.
What do Typical Joint Venture Partnership Splits look like?
Partnership splits are very deal-specific.
Most equity typically goes to the partner managing the deal. Then to the finding & underwriting. Then capital. And finally, net worth.
So, how do you start?
Step 1: Make a list of 20 potential PMLs or partners. Start with friends and family.
Have conversations around partnering on deals, or having a private lender on your next deal.
Step 2: Create a pitch deck highlighting your experience.
The partner for your next big deal might be closer than you realize.
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