Joint Venture Funding: A Beginner's Guide

Taking part in a joint venture to begin your journey in property investment is a great way to get started without needing substantial personal funds. Leveraging partnerships, and using other people’s money and your expertise allows you to take advantage of investment opportunities and can result in success for both parties. The costs and risks are shared, but so are the profits. 

Here’s a practical example of a joint funding venture:

Steve is a property investor with the skills and expertise needed to manage the entire process, including finding suitable investments and overseeing the sale of the developed properties. However, they need more capital to fund the project.

James is a high-net-worth individual who has the financial resources but doesn’t have the time, expertise, or interest in managing a property development project. James however knows that investing his money in such a project would be a wise choice and give him more returns than keeping it in a savings account.

In this joint venture, James provides the capital to purchase properties. At the same time, Steve handles all the operational aspects, including project management, obtaining planning permissions, hiring contractors, and marketing the completed properties.

Once the project is complete and the properties are sold, both parties agree to share the profits according to a pre-established agreement. For example, they might agree that after covering costs, the profits will be split 50/50, or Steve might receive a larger percentage if they also take on more risk or responsibility.

Building a credible brand online can help you reach and engage with the right audience, showcasing your ideas and generating interest in your joint venture. You can create engaging online content to share with your audience by:

• Create posts about your joint venture, outlining the business plan, the value proposition, and your unique approach to property development (or any other past venture). Post stories about previous problems you have faced and unique solutions you’ve implemented.

• Documenting your current projects from start to finish with some high-quality videos and photos. This offers potential investors a visual understanding of what you do as well as proof of your work.

• Participate in relevant online forums, LinkedIn communities and Facebook groups for entrepreneurs and other property investors. You can share knowledge and promote your own work – remember, avoid hard-selling your project and focus on contributing value instead.

• Stay consistent with your content updates and continue engaging with your audience and peers online. Commit to sharing content once a week or however often you can commit to, and always respond to comments and messages from people, demonstrating your dedication and professionalism.