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.
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Kinds Of Returns And Rewards
Chapter N (continued)
Don't Be Greedy
Forms:
Who Gets What - Dividing Up The Benefits
Don't Be Greedy
How are you going to get paid? Are you going to get paid as an operating partner, and when?
Are you getting paid as a lender, and when? What lund of return means the most to each partner.
According to Ron LeGrand, we all have a greed gland. If you are so consumed with getting
absolutely the most that you can, you are going to squeeze your partner
dry. You have to control your greed gland if you are going to make it
work with a partner. It's easier to work all by yourself like The Lone
Ranger, because you don't have to be accountable to anybody else
about the size of your greed gland. It's possible you will be able to
fewer deals as a result. Those are the individual choices that you
make.
However, if you want long-term relationships, and a reputation for fairness which will make
private banking more available to you, you must consider what your partner needs or wants in
order to make it happen. As a Deal maker you need to compare what somebody can get by doing
a deal with you with what they're getting from other investments. You want to offer somebody
enough to make changing their game plan worthwhile.
More Examples Of Venture Money Arrangements
| DEAL |
INITIAL
PARTNER
$COST |
ONGOING
$COST |
FINAL SPLIT |
"1 PARTNER + BUYER PROBLEM = RENEGOTIATED MONEY ARRANGEMENTS"
Meadow Lane |
$13,850 + mort (inc. 5K up front) |
Partner covered costs initially, then MC covered nonmortgage costs |
Partner got 14% plus tax
benefits, 30K yielded $35,453
MCgot 5K up front + $4750 final |
"THE QUICKIE"
Murray Hill |
$22,100 + 15K/ mo. (inc. 2K up front) |
House needed only$950 in
repair/cleanup; agent brought deal,
resold it quickly, minimal MC work |
Partner profit $3368 in 3 mo. 35.86%effective ROR MCgot 2K up front + $1369 final |
"2 DIFFERENT PARTNERS AT DIFFERENT RISK LEVELS"
Lee Circle #l |
$8,200.00 |
(inc. 2K up front & repairs) |
was to be split 50/50, but
replaced after 6 months |
| Lee Circle #2 |
$10,000.00 |
MC covers all costs |
@ 13%, $1 1,300 in one year,
but completed in 6 months
so 26% ROR
MC got 2K up front
+ $6600 final |
Dividing Up Benefits of Joint Venture Real Estate Investment (PDF File)
Building a Joint Venture Agreement - Chapter O
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