Joint Venture Renovation occurs when two or more parties collaborate to achieve greater success while maintaining their individual personalities. When a renovator sets out on the road to transform their income and life through renovating she often lacks one or more of the essential ingredients to be able to complete a profitable project. Rather than waiting months or even years to be ready, you can structure a joint venture instead so that you can get going straight away.
In order to get going with renovating, there are three ingredients for a successful project. The more of these that you have, the easier it is.
Three Ingredients For A Successful Joint Venture Renovation Project
We call it the golden triangle
- Time /flexibility to complete a renovation with a 4 – 6 week duration
- Cash/Equity to fund the renovation, deposit & n transactional costs. ( Minimum 30% property value)
- Borrowing Capacity for an 80-90% LVR loan for the property you are planning to reno.
In a joint venture renovation you team up with at least one other person who can contribute the elements you are missing. Do a project together and split the profit.
It’s also a great way to overcome a lack of confidence by teaming up with a more experienced renovator.
I have done quite a lot of joint venture renovations myself . In the beginning, it was through necessity and now I just like the idea of working with a brain’s trust.
In working with women doing joint ventures, I have discovered that there is a layer of complexity that adds a level of risk that needs to be managed. I liken it to marriage. You need to have clearly defined roles and responsibilities, you have to work at the relationship and there will be times when you don’t like the other person very much. The upside is that if you enter into it with an open heart and work at a good outcome, the payoffs are spectacular.
One aspect of a successful renovation joint venture is the legal structure and documentation. Renovators often skimp on this seeing the legal costs as avoidable. Some opt for
Wonder Women Renovators Program
You may like to consider The School of Renovating Wonder Women Renovators program which provides training, mentoring, community, and joint venture opportunities for creative women, wanting to replace their income with renovating and Airbnb either now or at retirement.
She Renovates Free Facebook Group
And if you’re not a member of our free Facebook group, please come over and join. I come into that group every Thursday and do a FB Live and let you know what’s going on in our community. And I love to see you there.