REJVP - Real Estate Joint Venture Partner

Q:         What is a Joint Venture Real Estate Partnership?

A:         Joint Venture Real Estate Partnership may be defined as a written agreement between two or more people to cooperate on the Purchase, Operation and Sale of a piece of real estate. Each member in the agreement has defined duties to perform under the terms of the agreement.

Typically each party to the partnership brings a particular strength to the agreement. Usually one party will bring the Real Estate Expertise and the other party will bring the Investment Funds.

Q:         How well does a Joint Venture Partnership work?

A:         Joint Venture Agreements have proven very successful for both parties through out time.

An experienced real estate investor creates Joint Venture relationships in order to build their real estate portfolios faster than they could on their own. It is common that the investors that have a successful operation and the proper systems in place will locate more real estate deals than they could fund or have the required credit lines after purchasing several properties over time.

This creates the need for the Financial Partners involvement. The Financial partner typically has the money available to fund the purchase, either in cash that is under performing in typical investments (stocks ,bonds, mutual funds other low return investments), or in the existing equity of a personal property that may be accessed with a line of Credit.  When structured correctly it is a win, win for both parties.