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Welcome to Pro Real Estate Software! By: Oliver Webber: Pro-Real-Estate-Software.com is aimed at providing information on real estate software programs for real estate agents... software for Pocket PC and Palm PC.The information was initiated by the research our we made on the most frequently ask... A Real Estate Investing Primer By: Adem Hamidovic: There are a great many books and web sites devoted to real estate investing out there, but most of them concentrate on... each without ever having to spend any of your own money. If you're not put off by longer term investments then lease o... Investors - Look For The Real Estate Sweet Spots By: Mark Walters: A politician once proclaimed, "All politics is local!" The same is true for real estate. If you live in Southern Calif... activity and no increase in home prices for over 5-years. If you are in one of those markets you find real estate inves... Want To Be Profitable In This Real Estate Bubble? I'll show you how in just Three Easy Steps By: Chris Anderson, PhD: This is a question I get almost everyday from either our web site GetPreconstructionProfit.com or from my individual i... Typically this should be around a ratio of 100 to 150 for a good cashflow investment. In some areas of the country, thi... Flat Fee MLS Listings - Is this the future of real estate By: Richard Massey: Realtors are all a buzz about this new form of listing houses on the MLS (multiple listing service). Some feel it crea... the buyers agent in commission for bringing you a buyer (typically 3%). So in the sale of a $200,000 house you would pa... Joint Ventures In Real Estate Development; So How Do They Work? Colm DillonThere are many reasons why you would consider joining with another person to undertake a development project in Joint Venture. Usually the 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 the Joint Venture, (JV) and their land will be their major contribution to the deal, plus some borrowings. Let's consider the implications of entering into a JV in the 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 ... the list goes on. So, getting into a JV must have a good payback for you. Whatever you lack is usually the reason for entering into a JV. I have noticed over the years that JV's have a prime motivator, the driver of the deal (you), and the other person is along for the ride. For example: the other party may have a wonderful property (site) and wants to develop it, but does not have the knowledge. You "love" the site and know that you could make it a very successful and profitable real estate development. You approched the 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 the other as contributing equally. You know the feelings that can occur, "I'm working harder that you ... all you do is the phone and number crunching work ... I'm always out and about on site dealing with the real work." Don't forget why you got together in the 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 the other to sit them down and go through it ... it's important! Why? Suppose the 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 the arguments at the beginning of the 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 the parties 'fall-out' with each other as well as the division of profits or losses. There is a lot more at stake if you JV with your rother-in-Law, other relatives etc ... the 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 the JV Agreement, or what the 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 the 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 the GOLD, RULES. Also, if the 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 the deal ... better to be an employee! In my my ebook I emphasise the importance of getting the Structure Work of the business organised - you will build a much better development business from a secure foundation. When you are doing your interviewing of the 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 the 'TIME' or 'SKILLS' to do the work themselves. Don't come out and ask them straight away ... follow my ebook, do the work you want to do; that is assessing them ... but keep your antenna out for any signs of a common interest. OK, back to getting hold of some land. Get to know the local real estate agents; I mean know them well. Remember what I say in the ebook. Call in and buy them a cup of coffee, take them out of their work place; what about dinner after work; really spread yourself around. Invest your Time in finding good, well informed, dedicated agents. Believe me they are in your business community ... it's your job to find them. Appreciate that Agents are essentially self-employed, irrespective of whether they work in a Real Estate Agency ... their 'mind set' is independent. They back themselves and their abilities to provide a sales service at a level that "consistantly" provides them with a 'good income. That 'good income' by the way, will leave most of their 'client's' income looking a little anaemic. The 'good agents' are busy; their 'time' is money; literally. So don't mess them around. Don't talk to them as though you are the Aga Kahn! You're Not. There's always a guy richer than you ... maybe the Agent! Why am I making such a big point about agents. I believe "people" get the agents "they deserve." I have heard people talk to Agents as though they were some grubby leech on society and are doing them an honor even to talk to them.< |