|
|
Like this article? PLEASE +1 it! |  |
|
Joint Venture Equity
| Guest post by: Carl Moore |
Article Overview: Since institutional equity providers prefer larger deals, developers looking for $3 million in equity, for example, have a hard time getting their attention. But if an organization has the capacity to do seven deals a year, for instance, then the amount of equity inches up in the aggregate of $20 million to $30 million over 12 months, and it hits the threshold where it makes sense.
 |
Free Download - Big Consolidation in Solar-equipment By Carl Moore |
Joint Venture Equity
Like construction debt, joint venture equity for new construction is very hard to find. Smaller developers working on one-off deals will still find their best success in raising "friends and family" equity. But striking a relationship with an equity provider on a series of deals is a possibility for vertically integrated companies.
Since institutional equity providers prefer larger deals, developers looking for $3 million in equity, for example, have a hard time getting their attention. But if an organization has the capacity to do seven deals a year, for instance, then the amount of equity inches up in the aggregate of $20 million to $30 million over 12 months, and it hits the threshold where it makes sense.
Key to these types of deals is an organizational structure that includes some pretty big overhead costs, such as in-house construction, leasing, inspection, and engineering expertise. A single developer hiring several third-party providers is not as attractive to equity providers.
These "first look" agreements, which were popular in the 1990s, may be coming back in style. Such agreements require the developer to give the equity provider first dibs on any of its deals, and if the equity provider says no, the developer is free to bring it somewhere else As Housing Programs Falter, Administration Weighs New Refinance Plan
Rumors of a new government-led mortgage refinancing program have begun to surface, confirming that the White House is indeed considering a refi push that would allow homeowners to lower their monthly mortgage obligations by locking in today's rock-bottom interest rates.
Some industry insiders are viewing the move as a concession by the federal government that its existing housing programs aren't doing enough. The latest figures from the Treasury show that the Home Affordable Modification Program (HAMP) has yielded just 389,198 permanent loan restructurings - results that even the inspector general has called "anemic, a mere drop in the bucket considering the program's end-goal is to refinance 4-5 million.
A position statement from one of the nation's four largest lenders obtained by DS News points out that while the benefits provided to homeowners under a new refinance program would certainly appeal to policymakers, those benefits would come at a cost.
Namely, a large portion of such efforts would be negated with high redefault rates expected on the refinanced loans, the bank said. Secondly, while a government-sponsored refi wave may help existing borrowers, it could penalize prospective new borrowers, as investors price in the potentiality of another government-driven refi wave in the future. And thirdly, refis would result in large losses for mortgage investors.
Funding Resources
Joint Venture
Lucrative Joint Venture Questions
Joint Venture Power
How To Propose A Joint Venture
Why Should You and Your Business be In a Joint Venture Club
Joint Ventures - Don't "SELL" it!
Top 10 Tips To Having A Successful Joint Venture
Finding Joint Venture Partners Just Got Easy
Joint Venture and NonDisclosure Agreements
Advantages and Disadvantages of Joint Venture
Joint Ventures - Whom to Deal With?
Understanding the Different Types of Joint Ventures
Where To Find Joint Venture Internet Business Ideas
Writing a Partnership Agreement for Joint Ventures
Consider International Joint Ventures
Equity Financing
How do I Innovate My Business to Grow My Business Without Increasing Costs
The Power and Reach of Joint Ventures
Joint Ventures - How Much to Charge
Article Tags: construction financing, developers, equity, institutional equity, joint venture, permanent loans, SBA Loans, venture capital, venture equity
|
About the Author: Carl Moore RSS for Carl's articles - Visit Carl's website Click here to visit Carl's website   Who do you believe How to think out of the box regarding Equity In 2010 157 banks were closed a pace of about 30 banks per week In the number of startups California is first in 13 industries Trends in Seniors Housing |
Related Forum Posts
Re: [JOINT VENTURE] Want FREE Staff? Want to Scale Up Massively?
- Hi Alan,
Welcome to the forum!
[quote="Joint Venture":2bfdqwzb]Total transparency is a must when JVing with someone.[/quote:2bfdqwzb]
What about when inviting people to send you their proposals...?
Cheers,
David H
Don't leave your Wallet on the table
- Targetzone,
Evan has great points on targeting you package. Also I read the revenue model you mentioned and i believe you are leaving a lot of money on the table.
Aisde from making just $15/sale of a package you could also be making income from sales generated after the people use the coupon on their second and ongoing visits to the Service/Product company.
I've sent you a PM - We can talk more advanced strategies.
BTW - I'm a Dollarmakers Member and have taken the Joint Venture BootCamp 101 and highly recommend it if you wish to pursue this idea. PM me privately and we can talk.
Different types of funding
- Business Relationship Funding
This is another source of funds that can be overlooked. It may be possible to introduce potential alliances to add value to both parties. It may produce an ultimate exit route in the medium to long term.
Joint Ventures: Requires a legal agreement embodying the deal and another company
Partnerships: Two companies collaborate with possible funding.
Joint working relationships: These are an informal partnership which may be more project specific where the parties can share resources.
Agencies: These can be geographical or product specific and generally incorporates a payment for the right to the agency.
Distributors: Very like an agency but may not necessarily involve up front payment.
Alliances: These do not require a separate company and can be embodied by a legal agreement to work together.
Trade investors: Otherwise known as Corporate Partnering. This can be a good way to involve a much larger company in the business with a view to possible trade sale further down the line.
Associates: This can be a loose arrangement with no fundamental commitments either way, rather like a preferred supplier.
Equity Swop: Two companies exchange shares to a similar value to develop both businesses.
Franchises: This can allow the business to grow without further direct investment.
Licensing: This involves licensing a product or service to enable others to sell it. This requires you to own the intellectual property.
Re: [JOINT VENTURE] Want FREE Staff? Want to Scale Up Massively?
- [quote="Joint Venture":3738ldxh][quote="Ringo":3738ldxh]1) Credentials? Any website? Any client list?
2) Where do you get your staff from? How?
I mean if i really am going to hand over a lot of sensitive information to be handled by staff of your choosing, I'll need to know how you operate with total transparency.[/quote:3738ldxh]
Ringo,
1) Send me an email with your proposal and if I like it I shall disclose all that your need.
2) That's my USP!
Total transparency is a must when JVing with someone. Let me know your proposal and we may discuss it. In regards to staff dealing with your sensitive information, compartmentalize the data. Have different teams deal with only a section of the whole picture.
[quote="ideasuniversity":3738ldxh]How long have you been doing this? And what are your success rate?[/quote:3738ldxh]
Joint venturing? I have done JVs before and had good success. This JV? Brand new. New source of staff. Success rate? I've made a good bit money!
[quote="Trent Brownrigg":3738ldxh]This same person posted this exact same post several times at another forum I moderate. Now, he is posting it here as his very first post. I consider that to be a spammer![/quote:3738ldxh]
I consider it being proactive! Sorry if I have stepped on anyone's toes. Not my intentions.
Look forward to reading more of your emails,
Alan[/quote:3738ldxh]
Let have your website.
Re: need a capitalist to hear me out
- If you have solid business plan, there are thousands of Angel Investors and Venture Capitalists that will fund your project. Google "Venture Capitalist" and you will get tons of investors who are ready to fund your project
Share this article with your friends. Fund someone's dream.
Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.
by: Erin Ferree, Small Business Branding Coach
Best Automated Forex Trading Strategy
Build Your List with Joint Venture Giveaway Events
May 2012 Top 100 Social Media Experts to Follow on Twitter
What to measure to be phenomenally successful in business
Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!
What Makes an Extraordinary Business Consultant?
12 Principles to Spark Innovation
Coaching Tip: Identify Your Core Values
Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.