Most sophisticated and successful multi-millionaire real estate investors utilize joint ventures to create wealth at an accelerated pace.
Some of the key foundational principles of creating successful joint venture relationships as discussed in detail in the ACRE (Authentic Canadian Real Estate) Program include:1. Systems
You need to follow proven step-by-step system that works and has been tested in all market conditions: up, down, or flat. Make sure this system is complete, gives you all the details and works in Canada.
4. Creating Win/Win Transactions
If you can master the art of creating win/win transactions, you are more than halfway to your goal of having an endless supply of joint venture money. Help other (your joint venture partners) make a lot of money and they will have others lined up to do the business with you. If you make the relationship one-sided, you will never get another penny out of them not they will encourage others to work with you. Quite often, you will be putting the needs of your joint venture partners ahead of yours. Remember: if you structure the deal properly, the more money your joint venture parter makes, the more money you make - a true win/win deal.
5. Ability To Sell & Negotiate
Selling: It’s a word that is very scary to some people. Many people have a bad perception of what selling really is. They get a picture in their head of a pushy salesman who tries to force or trick them into buying. That is not selling - that is manipulating - and there is a huge difference. The ability to raise investors’ capital is a form of selling and negotiating. Once you get you competent at the art of listening to people’s needs and determining if you can offer something that can help meet those needs, that us when you become a professional joint venturer.
Selling and negotiating are trainable skills. The more proficient you become at selling and negotiating, the easier your investment life will become. Bottom line - if you can fulfil the needs of your joint venture partner as well as your own then all you have to do is learn how to present your deal in a digestible format. If you can do that, very little actual selling is required.
“Little Hinges Swing Large Doors”… The famous quote from W. Clement Stone, who built a billion dollar sales organization out of the depths pf the Great Depression, is a great illustration of the power of leverage. Within real estate you can utilize the principle of leverage.
Now when you learn how to complete successful joint ventures, the power of leverage magnifies even further. You may not even have to come up with the initial one dollar investment.
7. Complementary Skills: Build Your Team The Right Way
Great teams are formed when partners skills or assets complement each other. Carefully choose your joint venture partners to ensure they are nor bringing the same thing to the table as you are.
Be honest with yourself. Identify what you’re lacking and then find some to fill that void. Remember: joint venture partners can provide you with cash, properties, credit worthiness or investing experience.
These are the seven foundational pillars to building successful joint venture relationships and this is just the tip of the iceberg. Implement these pillars into your joint venture skill set and you will have a solid foundation from which to grow.
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