This Investor Struggled To Find a JV Partner. Then Something Happened
Are you an investor who is looking to work with funding or joint venture partners? If it feels like youve hit a brick wall then check out this blog post for a solution that could change everything for you.
Take a poll among investors and youll find that one of the biggest, thorniest problems they face is a lack of money to do deals. To many investors, it just doesnt seem like there are enough funding partners to go around.
One REIN Member, who wishes to remain anonymous, shared this same problem. However, he stumbled upon a solution that he says has made a key difference in his ability to get funding.
At first, I struggled to put together my first deal. I simply didnt have the money and funding partners were scarce, he reported.
Stubbornly, I pushed forward and finally decided that my desire to invest in real estate outweighed my desire to partner with someone. So I worked for a couple of years to put together the money to buy my first couple of properties. I wont lie: The process was challenging and required more patience than I thought I had.
After almost giving up time and time again, he persevered and bought his first two properties.
Then something magical happened.
In conversations with people about what I do, I mentioned that I own rental property and was looking to buy more. And the floodgates opened. Suddenly, buyers were coming out of the woodwork to introduce themselves to this investor, offering tens of thousands and even a million dollars.
I knew these people before and they knew me, the investor said. And my pitch didnt change. What changed for this investor was his track record: He went from an unproven optimist to someone who had proven experience.
That period of time when the investor had to work to save money, and then went through the time-consuming (and sometimes stressful) challenge of buying his first two properties sometimes seemed like too much. But it turned out to be exactly the entry fee that the investor had to pay in order to start attracting other funding partners to work with him.
This was a game changer, the investor said. And although it didnt make the need for funding go away, the experience was the key that opened the door to new funding opportunities from people who wouldnt consider investing in the past. They no longer see me as someone who is pitching them an untested idea. They now see me as an expert who is sharing an exciting opportunity Ive developed.
If you are struggling with finding the right funding partners, and if you havent done any deals lately, consider rethinking your approach. Like the member mentioned here, you might discover that one or two bootstrapped deals even if they seem like an extra sacrifice could make a critical difference in the funding conversation you have with potential partners.