| An interesting point to note is that many private | | | | bank is lending. |
| investors are not necessarily business people or | | | | Such a Joint Venture is good for the small investor |
| property investors as such. A property investment | | | | because if they only put their money up once the |
| strategy that can help those people is the facility to | | | | bank has approved its loan there is little chance that |
| invest monies into Joint Venture property | | | | the venture will not go ahead. The reasoning behind |
| development. If a Joint Venture is done correctly | | | | this is that the bank has already searched out the |
| there are guarantees for the investor. | | | | company and has researched the viability of the |
| Private Lending | | | | Venture. |
| Many people who look to investing as a Private | | | | This type of Joint Venture investment comes with a |
| Lender do so because they want to invest their | | | | legal agreement, a Company Guarantee, availability to |
| money in something that will return them a | | | | view a feasibility document and an interview with the |
| considerably higher rate than they will get with it | | | | developer either in a group situation or a one on one |
| sitting in a bank account. | | | | interview. |
| Often people who have reached their latter years | | | | If an investor was going to invest on a set |
| are looking to park their money somewhere for a | | | | percentage return basis then the feasibility study is |
| few years in a relatively safe investment and get a | | | | not really that important. Where the feasibility study |
| higher return. Quite often these people have saved | | | | becomes important is when an investor opts to take |
| hard all of their lives but do not have the investment | | | | the percentage return investment. The percentage |
| or business knowledge to use their money | | | | return investments have the chance of making |
| themselves and put it to work so they are happy to | | | | greater money because of the profit made from the |
| have someone do it for them. | | | | project but they also have the risk of taking a loss. |
| Joint Venture | | | | When investing in Joint Ventures investigate at what |
| One such possibility is becoming involved in a Joint | | | | stage the project is at and what returns are going to |
| Venture Property Development. When going into this | | | | be achieved. The percentage return can certainly be |
| type of investment the investor is providing money | | | | much higher than bank interest. For safety of your |
| for a certain property development. What would | | | | funds it is not recommended that you put your |
| normal happen is that the developer has acquired | | | | money in a 'Cash Box' situation where you do not |
| some bank funding and is looking for extra funds | | | | know what the monies will be used for or when the |
| from the private sector to add to the funds that the | | | | monies will be used. |