Private Money Partnering

Private Money Partnering Table of Contents
Find Out All You Need To Know About Private Money
Partnering And Joint Venture Real Estate Investing.

Finding Private Money Partners
How To Find Private Money Partners for Real Estate Venture Capital Using The Web And Other Resources

Testimonials About Private Money Partnering
Find Out What Investors Have To Say About The Information On The Private Money Partner Site.

Private Money Real Estate Venture Capital Glossary
Coming Soon. Terminology for Private Money Partnering And Real Estate Joint Ventures.

Private Money Joint Venture Real Estate Blog
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Private Money Partner Meetup Forum
Private Money Investors & proposers Can meet and find mutually beneficial partners.

Private Money Partnering Home Page
Introduction To How We Can Help You Find The Private Money That You Need.

When A Joint Venture Goes Wrong

Chapter Q (continued)

What Can Go Wrong?
What Can You Do When Things Go Wrong?

What If The Profit Was Overestimated?

What if profit was based on selective or distorted comps?

What If The Timetable Was Not Workable?

What if it is different from what was originally the case? Let me tell about the little house on Meadow Lane. We had some lease-purchasers who were saving for their down payment. They were within $100 of having enough money when they decided to divorce. I had to go back to my money partner and say that life had happened here, and we needed to regroup. Originally the partner's $13,800 was to cover all the repair holding costs for the estimated vacancy and my fee - in other words, all the up front costs.

Since the time for the project was basically going to be doubled, we renegotiated the costs from that time forward. My partner would handle all ongoing mortgage expenses, and I would handle
whatever fix up and re-advertising costs were involved. We shared some of the additional expenses, renegotiated the cash flow issues, kept the interest rate on money out at the same rate,
and saved the partnership and the project. We got another buyer, and my partner still got the same amount of return, but we renegotiated to fit changing circumstances. The basic concept is
that nothing is forever, and if you need to negotiate, just do it. Accept the fact that you need to go to your partner and say, " Can we talk?"

What If There Is Overpromising And Underperforming By Either Party?

When things go wrong, you need to approach your partner in a tactful way. What would pacify and motivate them to become more effective in their respective areas of responsibility? Will they be offended by constructive suggestions, or embarrassed that you've hit the nail on the head?

What About An Uncontrollable Change In The Market Place?

I had a property in Dekalb County that was put on hold for almost six months because of an upcoming Supreme Court decision. Most of the properties in that particular neighborhood in Dekalb County weren't selling because everybody was waiting to see what the Supreme Court was going to say about mandatory school bussing . I didn't have any control over that and we could not effectively market the property.

What If The Partners Have Different Expectations?

What If The Partners Disagree About Those Original Expectations?

What If One Partner Has The Unilateral Desire To Change The Original Understanding?

Do you change the game plan, change the goal?

In this role-playing situation, a very worried operating partner is wing to handle the situation when his money partner wants out.

ALLEN: Mark, I have a little bad news for you. I'm going to need that $100,000 back that I invested in that project you talked me into. I've got to get away and spend some time on the French Riviera, I was thinking about maybe spending the whole summer there and kind of unwinding and I really need that cash back that I put into your project. I really need it quickly, so could I please just get the cash back?

Joint Venture Going Wrong - Chapter Q (continued)