You don’t know what you don’t know

by Dan Trivedi

12:11 PM, 6th June 2016
About 3 years ago

You don’t know what you don’t know

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You don’t know what you don’t know

lightbulbBack in 2013/2014 I was very active and at the time there weren’t as many investors around buying in Norfolk as there are today.lightbulb

I was frustrated because I was missing out on deals because I thought I could only buy property with my own funds.

It became increasingly annoying when agents were calling me up and proposing deals to me that I couldn’t complete on, because my funds were either tied up or I was in the process of other projects.

During 2014 I decided to change my own mind set and instead of losing the deals I started to share them with people I’d met through networking.

I met ‘Steve’ and was able to offer him a jump start to property investing via a Joint Venture.

We completed that JV in Dec 2014 and within weeks it was rented for £1800 pcm. Subsequently 9 months later we pulled the funds out with a refinance using the uplift in value and started to build a portfolio together.

We paid £190k for the house and spent around £2500 on it. In April we sold it for £260k.

Since then I’ve bought and sold over 50 HMO properties with Joint Venture partners.

Yesterday, we launched nowpropertytraining.co.uk to teach and demonstrate to other individuals how to source, buy, refurbish and tenant HMOs with Joint Venture partners.

We also have 14 projects currently being purchased with joint venture partners as arm chair investors. If you’d be interested in learning how to create financial freedom, in property with joint venture partners or are interested in JVing with us – please complete my contact form below 🙂

Contact Dan Trevidi

Dan is the CEO of Grace Charles property company Ltd


Comments

David Lawrenson

9:38 AM, 7th June 2016
About 3 years ago

A reason joint ventures are becoming more popular is because of the changes to the tax regime on deducting interest against tax, a fact that has escaped many people. This combined with increased lender restrictions (e.g. higher rent to interest ratios), which is driven itself by the tax changes.

This makes JVs more popular, whatever your, ahem, "mind set"

One thing that you will need your ahem, mind set, switched on to is to ensure you read any contract very carefully, especially any JV contract - and maybe do some digging around to see where people have made mistakes in the past.

Overtrading - having too many projects on the go at any one time - is one danger. And we have seen even an experienced operator with a good reputation suffer damage to their business in this regard.

So if you get into JVs it can be great but always take care - and keep in mind that companies can and do sometimes go bust. Hard to believe but it does happen!


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