How does a Joint Venture work?

How does a Joint Venture work?

We target real estate investments that we believe possess cash flow potential and may benefit from the implementation of a rigorous, value-added asset management plan.

 

How does a Joint Venture work?

Two or more partners agree to form a new entity to pursue a specific business opportunity. Sometimes partners in JV’s contribute equal amounts of cash to the new venture or one partner may contribute cash while another partner contributes his expertise and the personnel resources to operate the Venture. When we establish a joint venture, typically we take the role of the manager, using our experience and expertise to supervise all of the operations of the project, while our partner/investor provides the funding for acquisition and expenses. Depending on the outcome/exit of the project,  monthly cash flow from a restructured note and capital gain from the liquidation of the note or underlying property are split between each venture partner.

Typically 100% of the principal payment is allocated to the Investor and interest income is split 50% between Manager and Investor. We target real estate investments that we believe possess cash flow potential and may benefit from the implementation of a rigorous, value-added asset management plan. This plan involves due diligence, price negotiation, asset repositioning, and eventual liquidation through appropriately selected channels.

To learn more about current JV opportunities, complete the contact form thank you!

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