Partnerships

[Astonv]

Hi

Just wondering how many of you are involved in partnerships for buying property and do you think its a good thing?

For example, if you have time on your hands and have the skills to work on houses but not in a position to finance the deal, then you would look for someone who has money but no time and then you would split the profit when you sell.

Cheers

[k1w1]

It's a great idea in principle but you have to have a strong degree of trust in the partner(s) and all have to agree to the long-term aims.

That post was a struggle, but I've gone for as non-trivial as I can muster. I hope it passes the strict guidelines set forth.

[drelly]

Too many potential issues for me.

[Puff]

Hi Astonv. This is exactly what I do. I work with investors who have money/equity and are time poor, or maybe they aren't really sure on how to do projects/make money.
I have projects on the go at the moment all with different investors. They are all going to plan and now the first one is sold I have one very happy investor.
The details are thourough on each project (every last bill taken into account), and we have a very good JV Agreement, simple but clear.

k1w1 is correct in the trust thing. You have to either have a fair amount of trust or do your own DD so you know the project will work. The JV Agreement takes away some of the trust, it is clear for all parties. Also look at the track history of recent deals they have done.
The way I run mine, the investor (financer) knows he is really leveraging and getting the best out of me and my team to make it work.

Hope that helps.

Just to put in a wee plug for me, I am always looking for investors of different degrees, people that can finance major subdivisions to small renos.
OR
You have a project from CHCH North in the South Island and no time/expertise to complete it, give me a call.

Regards

Mark

[Puff]

Most people (Kiwis(sorry k1w1, not talking about you)), on this forum I think like doing standard property stuff in NZ. I am only talking the majority, not everyone, that's why I do what I do. Something they can relate to but probably don't quite have the expertise or time to do so.