Profiting from Joint Ventures
What is a joint venture? Dictionary.com defines it as "A business undertaken
by two or more individuals or companies in an effort to share risk and use
differences in expertise".
We would like to expand on this definition -- "A business undertaken by two or
more individuals or companies in an effort to share risk, use resources,
time, and differences in expertise for a common goal". What is our
common goal? In our case, it's to make a profit or create a benefit for our
investors and our business. How do we do this?
- Joint ownership - This is what most investors think of
when they hear the term 'Joint Venture'. Investors can leverage our time,
knowledge, and experience to purchase, manage, sell, and profit from real
estate, while we leverage our investor's money and credit. Both parties
share the profits and invest in more properties than they otherwise would
have been able to alone
- Referrals - We are busy developing a brand new Spirepoint
website that includes information on our new referral program. Investors, or
anyone just interested in real estate, can refer deals and investors to us
for a flat fee or a percentage ownership interest in a property. The person
referring business to us is leveraging our ability to close on a deal to
make a profit for themselves. We are profiting by receiving more business
than we otherwise would have had.
- Associated Businesses - We have spent over a year building a database of people interested in real estate investing. Subscribers who are involved in businesses that have products or services directly related to real estate investing can work with us to offer our subscribers special deals. Our subscribers benefit by having access to special deals they would not normally receive. We benefit by improving the value our subscribers receive from our newsletter and website. The person offering the special deal benefits by receiving more business, improving their company recognition, etc.
As you can see, joint ventures can encompass more than what most people normally consider. Real estate investment joint ventures are only a small part of what is possible when you leverage other people's time, money, and experience. Look at your own personal, professional, and business contacts and try to see where you can benefit by creating joint ventures of your own.
This article is copyright © 2004-2010 Spirepoint Properties. All rights reserved.
Paul Blacquiere and Joanne Beehler are full time real estate investors and have been investing in Ottawa, Ontario, Canada since 2002. They are owners of Spirepoint Properties, a Canadian real estate investing company dedicated to making real estate investing easy.
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