JV’ing: What Do You Bring to the Party?

Waterslides are wicked childish fun

My favourite thing about getting away other than the great food, warm weather, visting new exotic locations, hitting the beach, zip lining, snorkelling reefs with tropical fishes, midnight buffets, water slides, sleeping in, no Black Berry, etc… is the time to think and refocus on what will help me most reach my personal Belize and that is raising capital (hence we I was reading Don and Russ’ book on Real Estate Join Ventures).  One of the JV action plan steps is to explain to the JV money partner what the money partner and the real estate expert each brings to the table.   For you real estate experts out there you should work through this exercise just so you know how much value you bring to the table even with my wonderful investor clients, I find many of you underestimate your experience, skill, and most importantly integrity you would bring to a JV deal.  Afterall, you do have me on your power team 🙂

Just in case this helps some of you who have not written down what you as the real estate expert brings to the deal, here is mine which I created using a template from Don and Russ but personalized for me.  Here goes nothing:

What Each Party Brings to the Deal:

Investor (Silent Money Partner):

To cash in on your investment opportunity you:

• Invest ONLY your money and a minimal time for due diligence
• Qualify for a mortgage
• Seek independent legal advice

Mr. Hamilton, the geographic real estate expert

To cash in on an investment, I have taken years to build the knowledge and team to complete the following list of tasks.  I will only get paid based on the performance of the investment.  If you the investor does not make money, I do NOT make money.  To make this investment opportunity happen I offer you:

1. Me as the geographic expert that knows everything about residential investing in Hamilton.  My record is impeccable; all of my investors are building wealth and are highly satisfied.  I work tirelessly to be the best and I only offer you my best.
2. Access to tap into my real estate power team.  Building a team of these professionals has taken years and many thousands of dollars in investment.  Through my extensive network of Hamilton investors and my own investor clients, I only work with the best of the best.  Also, because a high volume of transactions and referrals, I do receive VIP treatment and/or pricing from the following professionals:

• My Assistant Maria, many of you already know how amazing she is
• Mortgage brokers
• Realtor aka ME
• Real Estate Accountant
• Bookkeeper
• Real estate appraiser
• Insurance broker
• Lawyers with expertise in specific legal practices including a judge
• Maintenance and construction
  • Carpenters, plumbers, electricians, general contractors
  • Licensed home inspectors
  • General contractors
• Property management professionals

1. Complete property search

• I have personally viewed over 200 properties in 2011 alone, I have the crucial skill and experience to find the right property for the best investment
• Screen and filter potential investment properties using realistic rents and expenses.  With my analytical background in financial risk software and my research into the Hamilton residential rental market, my knowledge of market rents is second to none

1. Write offers

• Write offer on selected property
• Negotiate terms and conditions of offer; this is one of the most important tasks
  • I will negotiate the right price just enough to win
  • I write offers every week for REIN members that protect my investors’ interests
• Finalize offer
• Manage lawyers and mortgage professionals through the buying process
• Sign the documents

1. Structure the deal for flexibility and protection of all parties

• Set up legal structure via joint venture agreement

1. Manage the property manager

• Act as the primary interface to property management.  I have lunch with the professionals on a regular basis anyways
• Secure tenants: I will personally meet and screen them
• Manage issues or complaints
• Coordinate repairs or improvement services
• Manage rents and adjust rents with market when justified
• Market, rent, renovate, repair, paint, landscape, maximize use of said property to standards that experts sees fit to achieve appropriate rent and/or resale value

1. Keep the books in order and report on a timely basis to the investor

• Keep a record of such fixtures, repair material and/or land-scaping material expenditures and/or all other expenses, such as property management fees, subcontractors, taxes, insurance, realtor, legal, advertising and/or related expenses to market, upgrade, rent and later sell said property
• Provide simple and easy to understand statements on an agreed to timeline
• File annual or quarterly statements/documents that may be required by various jurisdictions

1. Be the leader

• Certain team members play crucial roles at different times of an investment life cycle.  From my extensive training and experience, I know when to apply a team member’s unique talents to the issue at hand that will create peace of mind

1. Know how to execute proven investment strategies in Hamilton
2. Maximize the investment’s exit strategy and know how to reap the rewards of our work

• Utilize my extensive network and list of pre-qualified investors to sell the property at market value and minimize costs.  For you long-time readers, I think you know how much time, money and effort I have invested to build my client list.
• Negotiate the deal
• Manage the sale through lawyers, mortgage agents and accountants
• Provide investor with property split of the investment
• Provide the investor with a simple statement of account to be used for investor’s taxes

And that is what I bring to the party.  How about you?

For those of you out there who are way to busy with your careers, families, lives in general and would like to finance a Mr. Hamilton deal, do please let me know > Maria (at) MrHamilton.ca

Hope that helps! Till next blog post – happy Hamilton investing everyone!!

Erwin | MrHamilton.ca

PS: If you want to work with Mr. Hamilton, he is only accepting the best investors who are ready to act today and if you’re one of them please email Maria and she’ll set it up: Maria (at) MrHamilton.ca

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