Joint Venture & Property Developer secured , but still no Deal!!
1 year ago
You got a seller and a buyer, but could not close the joint venture deal with the property developer! Have you ever been in that situation? We have.....a couple of times.
A few years back, we had a financier we convinced to back us up on a development in the Lekki phase one market which was really hot at the time. We were able to find a great property. It comprised a block of flats built up to roof level. It was a joint venture/Property developers dream come true.
We put the financials together and they were perfect. Alas! We still could not close the deal. What went wrong was simple. We were communicating through the landlord's lawyer, who claimed the landlord loved our proposal, but insisted we pay him legal fees plus a hefty commission!
The commission was a deal breaker. We did offer him a smaller commission than he expected, but he turned it down.
The second deal was the other way around. We had the Landlord's mandate to find him a developer for his property on Victoria Island. It was a nice quiet location suitable for residential development. We got to work and found a developer who showed keen interest. The developer had a proposal that the landlord liked, but there was one condition. The landlord insisted the developer shows proof of financial capacity before they meet.
The developer on the other had wanted to meet the landlord first before providing proof. We were caught in the middle, with the developer thinking we were the ones refusing to make the introduction. Eventually, the deal went cold.
Real Estate deals rely on network of people. We built jvpulse.com with the intention that developers, agents and landowners can connect directly. Its kind of like other sites like Tolet.com.ng that connect people who rent and those who want to rent.
It's not yet there, but that is the target. In the interim, we would love to hear some of your experiences.
Drop us a comment below and don't forget to check out our current JV Offers