What is a Joint Venture Real Estate Partnership??
A Joint Venture Real Estate Partnership may be defined as ” A written agreement between 2 or more people to co-operate 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 brings the investment funds. These agreements have proven very successful for both parties in the past.
A sophisticated real estate investor creates Joint Ventures relationships in order to build their real estate portfolios faster than they could on their own. The typical the investor runs out money and credit after purchasing a few properties. 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, GIC’s), 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.