Progressive Property Podcast5 Tips When To Know When Choosing a Joint Venture Partner - #rewind 134
In this episode of the Progressive Property Podcast we revisit episode 134 where Dan gives you the 5 essential things to consider when looking for a JV partner.
Choosing your JV partner is NOT a child’s game, like pin the tail on the donkey or ring-around-the-rosy. There’s too much at stake when you don’t think carefully and you don’t have your guards up. Discover how you can thoroughly pick the best JV partner in your property business through Dan’s simple steps. There will always be one who’s very compatible with your knowledge, skills, and vision, so never settle!
KEY TAKEAWAYS
- Work out the real reason you need a JV partner. Are you really in dire need? Or are you just lacking of self-belief? What business are you looking to bring your JV partner on? Make sure that your bringing in the right person. If you don’t want to do it alone, it’s worth considering also to have a mentor who can guide you. Having a JV partner might complicate the situation if you aren’t clear yet of your purpose.
- What will each person’s role be? It’s best that you complement each other. Find someone who have the knowledge and skills that you lack. And, who will deal with the day to day issues? If you just want someone who will provide the funds, then being active with the operations is the least to worry about when looking for a JV partner.
- Before any agreements, remember to make a list of things you need to agree upfront. A JV Partnership agreement must entail everything each of you must bring to the table. What does your JV partner want? Know what outcome are they looking forward to. Also prepare an exit plan just incase of unforeseen circumstances (e.g. breach of contract, critical illness, etc.)
- If you’re looking for a joint venture in property, familiarize yourselves first with PS13/3 regulations. There are only a bunch of people you’re allowed to joint venture with, and PS13/3 has it detailed.
- Don’t pick someone just like you. You are not looking for another you, you are looking for someone who can do what you can’t do. Consider taking the Wealth Dynamics Test to gauge if your personalities are compatible. You and your partner can be: a Creator, a Star, a Supporter, a Deal Maker, a Trader, an Accumulator, a Lord, or a Mechanic.
- Don’t rush in to picking a JV partner. If you’re picking someone for the long term, test everything out first. It would be a waste of time to know that what you have hope for in the partnership won’t be fruitful. Be clear about their values, not just about the money, the skill, and the knowledge they can offer.
BEST MOMENTS
- “Sometimes, people think they need a JV partner and they go into business with somebody when in hindsight, all they needed was to build some knowledge and gain some belief for themselves.”
- “We have the end in mind before we even started, and that’s what’s really important.”
- “You are not looking for the best mate to go out with, you are looking for a business partner who brings a different dynamic, a different skillset.”
- “Pick the right person to grow the business.”
- “It’s not a race; it’s a journey.”
- “I made a lot of mistakes in property, but I made them before I got educated.”
VALUABLE RESOURCES
- PS13/3 Restrictions on the retail distribution of unregulated collective investment schemes (PDF)
- Wealth Dynamics Test
ABOUT THE HOST
Kevin McDonnell
Kevin McDonnell is a Speaker, Author, Mentor & Professional Property Investor. He is an expert when it comes to creative property investment strategies. His book No Money Down: Property Invest talks about how to control and cash flow other people’s property to create financial freedom.
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