Joint Ventures In Real Estate Development; So How Do They Work?

There are many reasons why you would consider joining with another person to undertake a development project in Joint Venture.

Usually the most basis reason reveolves around something you don't have. Some of them may be: 1. I own land ... have capital & capacity to borrow ... but no experience. 2. I have capital & capacity to borrow ... partner has land ... both have no experience. 3. I am 'time poor' ... work full time and can't be personally involved ... Let's suppose you want to find a land owner who will put their land into the Joint Venture, (JV) and their land will be their major contribution to the deal, plus some borrowings. Let's consider the implications of entering into a JV in the first place. After all, in a JV you have to take into account another persons attitude, decision making process, (or inability to make a decision), whether they have a logical and sensible mind ... the list goes on. So, getting into a JV must have a good payback for you. Whatever you lack is usually the reason for entering into a JV. I have noticed over the years that JV's have a prime motivator, the driver of the deal (you), and the other person is along for the ride. For example: the other party may have a wonderful property (site) and wants to develop it, but does not have the knowledge. You "love" the site and know that you could make it a very successful and profitable real estate development. You approched the land owner. Another example: maybe two individuals who have saved their capital, however individually it is inadaquate to undertake a project. Combining their capital and borrowing capacity will allow they to proceed. I prefer a JV where both parties are equally motivated, have different skill bases, but each regards the other as contributing equally. You know the feelings that can occur, "I'm working harder that you ... all you do is the phone and number crunching work ... I'm always out and about on site dealing with the real work." Don't forget why you got together in the first place. So there are many reasons for JV's. However, you must be clear as to why you are doing it, and it must be secured by a legally prepared JV Agreement. A lot of 'practical people' hate legal documents ... a JV Agreement is a legal document and both parties must understand what it says. If one of you is a bit slack on this point, it is up to the other to sit them down and go through it ... it's important! Why? Suppose the JV deal hits a rough patch and your partner says, "I didn't know that ... why didn't you tell me ... I left all that legal garbage to you ... blah, blah." Got It, have the arguments at the beginning of the deal ... not later. A JV Agreement sets out what each party will contribute, both money and effort, and sets out each parties obligations. It also sets out what happens if the parties 'fall-out' with each other as well as the division of profits or losses. There is a lot more at stake if you JV with your rother-in-Law, other relatives etc ... the term 'on-going-nightmare' is a phrase that readily comes to mind. And if one of those family JV's brake down, it dosen't matter how many pages are in the JV Agreement, or what the words say to prove that you are "RIGHT," ... as far as YOUR Brother-in-Law is concerned, you are a 'expletive deleted.' Just thought I'd get that out of the way!! OK? One more thing ... doing a JV with a rich person, when you are many levels poorer then them, is also not smart. Why? Well, in simple terms, when 'push comes to shove' money rules ... The golden rule says, He who has the GOLD, RULES. Also, if the rich guy tell you not to bother with a JV Agreement ... he appears to be saving you money ... tempting eh? ... what he's really doing is taking away your legal rights. Yep, you'll have less rights than an employee. If that's the deal ... better to be an employee! In my my ebook I emphasise the importance of getting the Structure Work of the business organised - you will build a much better development business from a secure foundation. When you are doing your interviewing of the associated professionals, try to see if they, personally, have any entrepreneutial tendancies. They may have land, houses, houses for renovation etc but don't have the 'TIME' or 'SKILLS' to do the work themselves. Don't come out and ask them straight away ... follow my ebook, do the work you want to do; that is assessing them ... but keep your antenna out for any signs of a common interest. OK, back to getting hold of some land. Get to know the local real estate agents; I mean know them well. Remember what I say in the ebook. Call in and buy them a cup of coffee, take them out of their work place; what about dinner after work; really spread yourself around. Invest your Time in finding good, well informed, dedicated agents. Believe me they are in your business community ... it's your job to find them. Appreciate that Agents are essentially self-employed, irrespective of whether they work in a Real Estate Agency ... their 'mind set' is independent. They back themselves and their abilities to provide a sales service at a level that "consistantly" provides them with a 'good income. That 'good income' by the way, will leave most of their 'client's' income looking a little anaemic. The 'good agents' are busy; their 'time' is money; literally. So don't mess them around. Don't talk to them as though you are the Aga Kahn! You're Not. There's always a guy richer than you ... maybe the Agent! Why am I making such a big point about agents. I believe "people" get the agents "they deserve." I have heard people talk to Agents as though they were some grubby leech on society and are doing them an honor even to talk to them. To be a successful agent these days you have to be very good. Many are highly educated and choose real estate as a career for the freedom, individual reward and great returns. What comes out of your mouth + body language tells an agent a great deal about you. They then wonder why the Agent never calls then ... Dong!!! Keep your 'ego' under control. Their sales success rests on their ability at 'reading people.' Remember what I say in my ebook! When you are in the development business, you are in the business of: Getting People To Do ... What You Want Them To Do Within The 'TIME' AND 'Costs'You Set. That means that you have to be in control of 'How You Treat People.' Agents know a lot of people ... maybe, they even know those people who want to JV with you. While you are doing this "work" don't forget to do what my ebook tell you to do about research. Last idea for finding JV people - talk to your friends - put an advert in the local newspaper seeking expressions of interest from people interested in doing what you want. OK, you've found a partner who has the land and you are comfortable with the relationship after several meetings. Important question! What value does your prospective partner put on his land that will be put into the JV? Just throwing a few figures around to give you an example. Let's say that market value for his land right now is 0,000. But he wants to put into the JV at 0,000. So if your JV Agreement involves you gaining a share of the profit, your share will be 0,000 less. Got It? Now let's say that part of your skills contribution to the JV includes a rezoning of the land to a higher level and you achieve that for the JV. That rezoning may take the land from a single unit (house) dwelling zone to a six dwelling unit zone. Your efforts have increased the land value significantly ... no, not six times, as house properties are valued differently to multiple unit properties. But it may have increased by 3 or more times, depending on your market. Once again the 0,000 will come off your share. Now that may be OK by you, because you are just starting out on your first development ... it is always better to KNOW what you are agreeing too. I hope this information helps you in your consideration of entering a JV. but please remember, don't just read my eBook ... study it ... take notes in a special hard cover Development Copy Book that you will buy. Writing things down is an aid to learning and remembering. My LAST DON'T ... Don't start any of this JV stuff until you know my eBook inside out. You must not just be able to 'talk the talk' - you must know what you are talking about. What I am all about, is helping you to do residential development with the RISK reduced. If it takes four years study to get a basic Degree and say another five years to get some experience, why would you think that you can enter the development business with little study -- no experience and expect to be profitable?

Real Estate Marketing Leads - Make Your Phone Start Ringing By Using These Tips For Your Re company

This morning I heard someone else Realtor complaining about how bad the store is. Yes, prices are down. The number of finished sales has also plummeted while the number of listings has gone up drastically. But there are still deals being done every day all over the country. Citizen are still buying and selling real estate. So while you are standing around preaching gloom and doom, someone else is making money in real estate.

You will need to turn the way you do business if you intend to stay in the real estate business for the next two or three years. If you haven't been marketing your services for awhile your phone is probably not ringing. Now is the time to start marketing and remember that you will need to store as long as you are in any kind of business, either it is real estate connected or some other type of business. Here are some ways to get started with your real estate marketing quickly, and with very miniature money.

Phone Number For Real

Start a Blog. You can go to Blogger, but only do this if you have assuredly no money or technical skills. Blogger blogs can be shut down at the whim of Google, and you don't want to suddenly have to recreate all of your hard work. Go to Typepad and get a 30 day free trial. Then it is only about 5 dollars a month for their most inexpensive blog feature. Write about what is going on in the neighborhood where you do the most business. This could be your farm area or someone else area where you would like to get listings and sell homes. Make an 8 ½ by 11 inch flyer that gives the address, or Url, of your new blog. Tell Citizen about it in the flyer and ask them to take a look and make comments. Make as many copies as you need and pass this flyer out in the neighborhood where you will be focusing your time and attention. Join a public networking group, such as Facebook, Ning, MySpace, or other site. Let everybody there know what you do and what kind of clients you are seeing for. Do this for several weeks and your phone will start ringing. This is marketing and it should be done ordinarily in your real estate business.

Real Estate Marketing Leads - Make Your Phone Start Ringing By Using These Tips For Your Re company

The Dirty Little Secret About Real Estate 800 Call Capture Systems

Real estate 800 call capture systems are a great tool for real estate agents. The dirty little secret...it probably won't work for you. The majority of real estate agents that get an 800 call capture system don't use it correctly and then when the phone doesn't ring, they blame the technology. The technology isn't the problem, the application of it is. Most service providers don't educate their users enough about how to get the most out of their systems. Here are just 2 of the ways you can make real estate 800 call capture technology work for you.

Lead Generation

Bieber Phone Number For Real

Use your real estate 800 call capture number in all of your advertising- business cards- flyers- faxes- direct mail pieces- advertising. Anywhere you provide your contact information, you should provide your 800 number. Why? Each time someone calls your 800 number you've captured a lead. Your call capture system captures the phone number- even if the number is blocked or the caller doesn't leave a message. You can also capture the name and address in most cases. Real estate 800 call capture systems provide you with unique extensions that can be loaded with a recording of your choice as well as a document that your callers can request to have faxed to them. Load a recording and fax-back document about each of your listings. Then advertise on your sign rider, "Call for free, 24/7, recorded information 800-888-8888 ext. 100." This gives your buyers the ability to call your toll-free number 24/7, at their convenience, for information on your listings. Remember, each time a prospect calls your 800 number for information, you've captured their phone number and possibly their name and address. You can also position yourself in the market as an information provider. Place a small ad in your local paper or perhaps send a post card out that offers free (no cost)- 24/7 (convenience)- recorded information (no sales person to talk to). Each time someone calls in to request the free information, you've captured a lead.

Listing Tool

Demonstrate the technology right in front of your seller's eyes. Before going to the listing presentation, record the information about their home in one of your 800 capture system extensions and load a listing flyer or floor plan of their home. During the presentation tell Mr. and Mrs. Seller that you are able to offer them something that most other agents can't offer their sellers. Let them know that you are going to offer free-24/7-recorded information on their home. Have Mr. and Mrs. Seller call your toll free number along with the extension for their home. They will be impressed with the recorded information and the ability to have a fax with even more information automatically sent to them. Give them confidence that each and every prospect will be contacted and in a timely matter after your system captures their name, address, and phone number.

These are just two of the ways you can make real estate 800 call capture technology work for you. This is just the tip of the iceberg. 800 call capture systems are a must for real estate agents looking to generate more leads and get more listings. But, it probably won't work for you...unless you know how to use it.

The Dirty Little Secret About Real Estate 800 Call Capture Systems

Brandi Armstrong is a leading telecommunications consultant specializing in 800 number call capture technology for real estate professionals. Learn more secrets and tips on how to make a call capture system work for you at http://www.realtyone800.com.