There is no quick fix to raising finance successfully.
Please be acutely aware that raising money successfully is not only available to the privileged few, its definitely not pot luck nor is there a magic formula and that little bits of ‘advice’ in isolation from all different people will not give you the answer to the raising finance success you are seeking. In fact quite the opposite.
Regardless of whether it’s someone posting about how you can get 100% JV finance or someone offering you access to their stockpile of cash saying “pm me if you need property development finance, £20k to £50million available” there is NO quick fix.
Even if it appears like it at the time i can guarantee you from 35 yrs experience of JVing and raising finance for property investment there is no short cut. While you may well come across someone who agrees to invest with you in the early stages of your journey, you need to be aware that gaining this level of interest does not mean you have raised the money successfully it merely means you have someone interested to work with you.
There is a lot of work to do before, during and after to make the JV a success for all involved and this takes….TIME!
The information available, the amount of people you have access to and the opportunities are endless. So if all the people and information you need is here, then why are so many people of all levels from ‘start ups’ to those ‘scaling up’ and even very successful developers with huge exposure still consistently leaving deals on the table due to the frustration of not having access to enough money?
Through my experience I believe its because most people want access to ‘easy’ cash they don’t want to spend the time to really learn about effective JVing. We live in a fast paced world where people have little patience – we want instant gratification, but the truth is……the rewards are SO worth it, if you take the time to learn a few simple strategies.
I appreciate you may just want to get on with buying the properties however, my advice would be to put your time and efforts into understanding that raising finance is dangerous if you don’t have stability in your life and structure in your business to deliver your end of the deal.
I believe this is also why we see consistent posts about troubled JV’s.
The actual stage of ‘raising the money’ is only part of the puzzle.
Relationships are key as all involved need to have a clear understanding of each other’s strengths, goals, intentions, weaknesses, drivers, risk profile etc so consider investing time in building a number of valuable relationships and start by understating what you personally bring to the table and what it is you do and don’t want from a JV partner.
Like any strategy or model in property, raising finance is no different, take your time to learn it, do it correct from the start, scale up steadily, perform as you promised and communicate at all times regardless of the hurdles you face and and you will be developing a skill for life around raising finance that will serve your regardless of how the market changes or what model or strategy you wish to use to secure your future.
With a successful list of valued investors working with you, You will always be liquid giving you a huge advantage over those that didn’t take time to learn the most valuable skill you could wish to master.
The reason I’m so passionate about you getting this right is that for me having the ability to Joint Venture and raise money has meant i have been able to start again in my life whenever I needed to. I made a bad mistake when one of the properties I owned was used as a cannabis farm. I knew about it, but turned a blind eye to it and ended up in prison as a result. I was told to expect a suspended sentence or 6 months…..but I got 3 years as the Judge decided to make an example of me. It was the worst time ever, but the one thing that this experience gave me was time. Time to evaluate what had happened, time to evaluate what had worked in the past and what hadn’t and from here and with the help of my daughter, I created the SIMPLE system to raising finance for property.
Come and join our free Facebook group where me and my team will help you every step of the way. I truly want to help you.