Joining forces for shared benefit
If lack
of funds has prevented you from purchasing your next property, perhaps there is
another strategy for you to consider. Even if you have no money or can’t
scrape together what you need for a deposit, there are other ways in which you
can get into the market. One of those ingenious ways is through a joint venture
arrangement. It involves getting
together with one or more parties for the purpose of a commercial activity such
as purchasing real estate. You both contribute something to the arrangement and
in return you share the rewards.
For example, you may be able to find people who are looking to
invest in property but don’t have the time available to find something suitable.
You may be able to come to an arrangement where you find a suitable property for
them where they would put up the money for the property that you have found, and
in exchange for your time they would give you a percentage of ownership of the
property.
Or consider this: maybe you have a great income from your job and
tick all the boxes for being able to borrow, but just don’t have any equity or
cash available for a deposit. Then
comes along a partner who has plenty of equity available in their home to cover
a deposit (and other ‘on’ costs) but because they no longer work much, they
aren’t really able to borrow.
Together, you now have the capacity to combine your situations to make
that purchase and reap the rewards together.
Another alternative may be to agree upon receiving a fee for your
efforts as opposed to a percentage of ownership. If it is a property development
site for example, you may be able to get a spotters fee or referral fee if you
find a suitable property for a developer.
If you do enter into a joint venture arrangement, it is best to
join forces with others that complement your own abilities and skills, and what
you can bring to the table. To ensure a smooth relationship, choose those who
have a similar mindset to you and focused on the same agreed goals for the
project.
The options for joint venture arrangements are just up to you and
your imagination, but always ensure you get proper financial advice and have a
solicitor draw up an appropriate written agreement. They are a great way to help
you continue on with your goal for financial freedom and although it may mean
sharing the rewards, remember 50% of something is better than 100% of nothing.
For more information on how Momentum Wealth can assist you with
your loan needs, contact Sarcha Sagisaka on 1-800-000-159 or email info@momentumwealth.com.au.
We have brokers all around
Finance Broking Services are provided by Momentum Wealth Finance
Pty Ltd*. *WA Finance Brokers Licence 3170
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