# Entrepreneur of the Week #Secondary # Post 4 #Danivataur - Partnerships and Mortgages and Raising Capital Warning: P
Partnerships and Mortgages and Capital Raising
warning: This post was not written in the Corona context
Financial constraints and solutions
Many investors, beginners and advanced, find it difficult to start or even pursue investments because of financial constraints.
There are several ways to overcome this obstacle.
Loans
1. The trivial solution of course is to take out a mortgage. Many investors whose center of life in Israel thinks they cannot get a mortgage in the US - this is not true, it is possible. Some banks are willing to give their mortgage at market interest rates.
The main problem of these banks is that they have to build a borrower profile for everyone and it takes time, and even then these banks will use mechanisms to protect themselves in terms of risk, and therefore will require higher capital adequacy or higher interest rates than market interest rates. But it is important to understand that there are "ordinary" mortgages - that is, from institutional entities.
2. For some of us, the direction of a loan from a non-bank body to a flip deal, for example, can also be a solution. For those who work in this direction, it is important to understand that there is quite a bit of negotiating ability with such a body.
Negotiation of intent on the terms of the mortgage. For example, the value of the property / the amount of the mortgage will affect the interest rate, and the borrower's experience can also affect the terms of the loan.
I encourage anyone in this field to collect and track the transactions neatly so that in the future they can view past transactions indicating the experience. These entities are often willing to give a discount to a returning investor.
3. There is also the possibility of taking out a loan or mortgage in Israel on an existing property.
4. Owner loan is also available. Already written quite a bit on this topic here. And is a topic for the post in itself.
5. There is another option that is less common in the country - a private loan.
What is a private loan? - An entrepreneur takes a loan from a friend, and not from a commercial entity, and against this loan gives him collateral in the property just as a bank or commercial entity will grant.
That is, instead of raising capital to execute a transaction, an entrepreneur can raise capital in the form of a loan from a friend or group of friends.
Before anyone sets out in this direction, it is important to know how to build control mechanisms for such a loan.
Partnerships
Many entrepreneurs operate in a partnership raising approach. That is to bring in a passive or active partner and work on some model of profit sharing. This is a great method and there are many ways to maximize it.
But I would like to talk about a different kind of partnership. Something I see less and always think can be significant for a lot of investors at all kinds of experience levels.
We often think of partnership as something between an entrepreneur and an investor. I personally very much connect and really like the direction of two entrepreneurs, especially with the beginner entrepreneurs, who invest together.
For example, two investors who buy one asset for $ 100 in cash instead of two assets for $ 50 each. There are several benefits here:
First, we probably bought 100,000 more quality property.
The second, bringing a partner cuts the risk in half for each party.
Third, connecting with an investor with a similar profile to my profile.
Throughout my career, I have seen quite a few times that they are investors who decide to invest either together right within a single transaction or go through the process of investing together that everyone buys their property.
In my experience and experience when there is a combination of two people with a similar investment profile, the likelihood of success in terms of performance and investment increases significantly. Exactly two is much stronger than one but also three or more.
That is why I mainly suggest those who have various impediments to find a member with a similar profile and invest the capital together or make the decision-making and investment campaign together and eventually everyone buys their property. The chances of success are in terms of making the investment and in my opinion the investment itself will not increase significantly.
What other ways do you see or do to overcome financial constraints?
What other types of partnerships or capital raising do you run?
Responses