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Joint Ventures

Sometimes the best way to make a property investment is with a partner. Joint ventures let investors take part in income property projects that they normally wouldn’t be able to join. It’s a great way to open up new opportunities - but you have to have a strategy to make it fair and make it work for you. Property Investment Guru Matthew Scott is here to help!

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What Is A Joint Venture?

A real estate joint venture is a deal between two or more parties that want to work together to develop a real estate project. These partnerships let real estate operators (those with experience managing real estate projects) work with capital providers (those who have the money to fund the real estate projects). While many joint ventures have these two parties, sometimes the role of “operator” and “capital provider” can be mashed together. 

This is what happens when a joint venture is made between your “average Joe” investors. Your typical operator is an experienced professional who works within the real estate industry and can source, acquire, manage, and develop a real estate project. The capital provider puts up the money for a large part of the investment - or even the entire project. But when two or more people want to join together and put money into an income property, these roles aren’t so neatly defined. 

Joint ventures aren’t just for major real estate or property management companies; you and your partners can form one, too. By working with Matthew Scott, you can have the roles defined and understood before a contract is settled and you purchase your venture property investment.

Getting The Most Out Of Your Joint Venture

One of the most important aspects to be clear on is the money earned from your joint venture. How will you distribute the profits generated from your income properties? Because of the work that goes into buying, fixing, and maintaining properties, the compensation may not be equal among all the partners. More active members or members who have invested more in the project may be entitled to more than the passive members of the venture.

Schedule a Consultation

Before entering a joint venture, you have to be sure where you stand. Matthew Scott can clarify the contracts and legal obligations to make sure that everyone gets their fair share. He can also help you draft an agreement that: 

 

  • • Specifies capital contributions
  • • Details the responsibilities of all involved
  • • Has an exit mechanism that can avoid legal fees

 

The reason to invest in income properties is to make money, and a joint venture can make opportunities available that would otherwise be out of reach. They can also be contentious! Matthew Scott can make sense of the obligations a joint venture would have on you and your partners, so everyone knows where they legally stand.

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