We know that deals can be structured in numerous ways. One model we don’t often hear about is joint ventures. Our guest today, Jerome Myers, has chosen this deal structure model to grow his real estate portfolio. As an asset manager for about 90 units and 90,000 square feet of workforce housing across Virginia and North Carolina, Jerome is also a passionate coach and teaches his methods of multifamily investing. In this episode, he walks us through joint ventures and how they are different from syndications. If syndications are commercial planes, with a crew and passengers, then joint ventures are fighter jets with no travelers. Everyone has an equal stake in the game. For Jerome, this model allows him to collaborate and engage with smart, creative people, who are all equally invested in achieving success. Along with this, we also touch on different debt structures, why he prefers to stay in the smaller multifamily space, and how joint ventures fulfill dual objectives of contributing to community good and making money. Be sure to tune in today!
Key Points From This Episode:
- Learn more about Jerome’s background and what he’s currently involved in.
- The difference between joint ventures and syndication and how Jerome found this model.
- Jerome's first joint venture project and his take on buying and holding.
- How Jerome and his team make use of local banks and the debt structure they offer.
- Non-recourse vs recourse debt: The differences and respective advantages.
- Structuring a joint venture and the importance of designating the partnership.
- Find out how capital raising and decision-making work in Jerome’s joint venture.
- Mistakes to avoid when setting up a joint venture.
- The deal size Jerome’s currently pursuing and why he stays under 100-units.
- Some of the other benefits of joints ventures.
- Final four questions with Jerome: His biggest mistake, growing his life, and more.
“Everything’s for sale, right? It’s just a matter of somebody wants it more than we do.” — Jerome Myers [0:05:35]
“We want to house nurses, firefighters, teachers. If help those folks out. They really make America run.” — Jerome Myers [0:09:50]
Links Mentioned in Today’s Episode: