I'd like to summarize JV presentation. I am sure that at a certain point, I'll hit a financial wall and will have to figure out how to get a down payment and financing using someone else's money. In addition, it will be amazing to grow personally and also together with others as a team.
What's Joint Venture
I loved Russell's definition of a JV. He showed a comic (which unfortunately I can't find to add here) with three kids on a play ground: a girl, with a jug of peanut butter; a boy, with a can of jelly; and another boy with a loaf of bread. The little girl elbows her buddy with the jelly and suggests: "Let's JV that guy for his bread".
Principals of Success (4 G's)
It's important to recognize that no matter how afraid you might be to get started, the skill of raising money is a just skill and you can master it. Everyone with a growth mindset can change and grow through learning, action and consistent practice.
Grit: Learn and keep going
Another hurdle many get stumbled upon is getting "no"s. Russell is sure that the person who gets the most no's wins. I agree with him! It's important to remember his tip on learning from every no: just ask what would have to be different in the deal, for the answer to become a yes. Then, adjust course or pitch, and try again. Focus on finding solutions and chop on a problem bit by bit, things will come together.
Many people are afraid to ask for money and feel awkward just thinking about it. The reality is that you are not asking for money. You are a leader and do-er who opens up opportunities for others, which they'd probably miss out on without you.
For example, I know some of my friends, often tell me: "hey, I don't know how you even do this?" and share that they worry a lot about future, job security, etc., yet can't figure out how to start shifting and taking control of the situation. If the right opportunity presents itself, it will be so great to be able to help them out - get a property together and show that investing is doable.
Find what the person needs, his/her why's, dreams and obstacles. Show them how to get there!
Russell reminded that practicing active gratitude will be helpful along the way. Be grateful for your partners, team-mates, family and friends and make sure they know. Gratitude will return to you from everyone around ten-fold. In his book "The Happiness Advantage", Shawn Achor explains that gratitude plays an enormous part in our well-being. It makes people happier, more optimistic, better connected socially, forgiving and energetic. Be more grateful and you will get more done faster.
Negotiating a Joint Venture (4 M's)
Now, in order to actually get the deal done, you'll need to negotiate and align with your partners on 4 aspects and terms behind them:
1) Money - who will be giving the money to cover the down payment and acquisition costs
2) Mortgage - who will put their personal name as the guarantor and qualify for a mortgage
3) Management - who will manage the venture
4) Mastery - who has the right skills, knowledge and experience for the venture to be successful.
I loved the event and feel very inspired. Cheers to building more and better together!