Usually 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 Joint Venture, (JV) and their land will be their major contribution to deal, plus some borrowings.

Let's consider implications of entering into a JV in 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 ... list goes on.

So, getting into a JV must have a good payback for you. Whatever you lack is usually reason for entering into a JV.

I have noticed over years that JV's have a prime motivator, driver of deal (you), and other person is along for ride. For example: other party may have a wonderful property (site) and wants to develop it, but does not have knowledge. You "love" site and know that you could make it a very successful and profitable real estate development. You approched 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 other as contributing equally. You know feelings that can occur, "I'm working harder that you ... all you do is phone and number crunching work ... I'm always out and about on site dealing with real work."

Don't forget why you got together in 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 other to sit them down and go through it ... it's important!

Why?

Suppose 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 arguments at beginning of 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 parties 'fall-out' with each other as well as division of profits or losses.

There is a lot more at stake if you JV with your rother-in-Law, other relatives etc ... 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 JV Agreement, or what 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 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 GOLD, RULES.

Also, if 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 deal ... better to be an employee!

In my my ebook I emphasise importance of getting Structure Work of business organised - you will build a much better development business from a secure foundation.

When you are doing your interviewing of 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 'TIME' or 'SKILLS' to do work themselves.

From desk of Colm Dillon ...

Author of

"Residential Development Made Easy"

Real Estate Development Marketing!

When do you start?

As soon as you open your 'baby blue eyes' every morning!

"The Easy Part of Property Development is Spending Money" ... "Marketing Is What Gets It Back + A Bit More For Profit."

Anyone can spend money. It takes a good manager to spend it at a predetermined rate in line with a planned 'cash flow.'

So this topic is very important. People think Development Marketing is all about putting an advert in paper, designing a brochure and following up agents ... I don't think so folks!!

Marketing starts before you buy land.

The location of land impacts on marketing. Is it a desirable address? Is it in a prestigue location? What market sector of buying public are you aiming for? Does site have local prominence? Does land have quality houses around it?

All of these questions impact on your marketing plan, home designs you select, costings and untimate sales prices.

So if marketing starts with land selection, it logically then goes on to design stage. Assuming you don't want to just copy something you've seen another developer has done, you need market knowledge.

You need maket knowledge of exact standard of product you are competing against in market now. Remember you won't be producing yours for another 12 months or so and you'll want to improve on what is being produced today, so you have a market difference. An 'Edge.'

Marketing is no more than presentation of your finished product to buying public in most favourable light, highlighting all benefits your home has over competition.

One kind of marketing style that is a failure as far as I am concerned is one that is based on "Numbers Comparison." I am sure you've seen on site project boards.