Hello,
New to the forum and this is my first post. I have a few properties that I would like to vendor finance. Should I join a joint venture or go it alone? This could be a tricky time to start out in this area as the new regs have come into affect.
My question is for those who were once in my position. Do I join a JV and give up alot of profit but learn along the way and hopefully not make many mistakes because the JV patner has experience.
Or do I do it myself. Take the hard road, get my credit licence and start a new business? I will probably make a few mistakes, but hopefully they may not cost me as much as a JV. I would like to start doing this as a long term venture adding more properties to my portfolio this way, so maybe this is the best option?
Looking forward to hearing from both sides of the fence, ie. those JVs out there that want my business and also those who do it alone and have made it….. or not.errol
Hi Errol
Thanks for the call. It was good to talk.
After making all the "newbie" mistakes in the world, we ended up making $19K from our first VF transaction. If I had done it with an experienced VF'er, the transaction would have had a total profit of about $35K. Having done it with an experienced VF'er would have given me about $17,500, i.e. not as good as what we managed to achieve ourselves.
The challenge was, the "newbie" mistakes took a while to disappear, i.e. they carried on into the next few tranactions, effecting our earning capacity seriously. I believe hands-on "doing" is one of the best education systems. Sitting in a classroom, for however many days, is how we started but I wouldn't have, if "on the job training" had been available back then.
Cheers, Paul
PS. Thanks duckster
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
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