Are you interested in real estate investing, but you are wondering about how and where to begin?
Or perhaps you are a seasoned real estate investor but wishes to explore more real estate investment options?
Not to worry! You are in to learn about one advantageous approach to achieve your real aspirations – Joint venture partnerships.
What are real estate joint venture partnerships?
A real estate joint venture is a mutually beneficial partnership with a real estate developer/ development company that gives you the access to expand and increase your real estate portfolio.
It is a solution available to real estate investors to accomplish more with their resources.
Whether you are a capital provider, an asset owner, or an institutional investor, a joint venture partnership is an opportunity that expands your reach and potential in the real estate industry.
Real estate joint venture partnerships take different forms, and not all of them requires money or an investor’s financial capability. Here is a list you can take advantage of:
Joint Venture Partnership based on Land Contribution
In a joint venture partnership based on land contribution, the land is the primary component of the deal. So do you have more than a few parcels of land but do not wish to sell them?
A joint venture partnership based on land contribution is just what you need to get returns on investment.
Collaborating with real estate developers instead of selling off the land provides multiple benefits; you earn, the value of your land improves and most importantly, you are part of the grand project/development.
Joint Venture Partnership based on Financing
This joint venture partnership is born out of the need to finance an enormous real estate project. In this situation, the real estate developer needs more capital to deliver. The primary requirement for this partnership is funds.
Do you have a substantial amount of money sitting in the bank? Now is the best time to utilize it in a real estate joint venture partnership for a higher return.
This partnership is usually a co-investment deal between multiple parties – the operating partner and the capital partners that includes yourself.
The operation partner is the real estate professional with the expertise to develop the project, and the capital partners provide funds to finance the real estate project.
Joint venture Partnership based on Reputation
This partnership occurs between a real estate developer seeking to gain acceptability and a renowned real estate developer in the real estate industry.
Perhaps you have the capital to fund your real estate projects and the expertise to bring them to life? But the challenge is with you gaining more acceptability in the industry because you are new and just starting in the business.
A joint venture partnership with a renowned real estate developer to scale your business and build credibility will make all the difference.
Credibility for real estate developers means more projects and improved returns. Thus, the reason this partnership becomes a solution.
Joint venture based Partnership on Construction management
Are you a real estate investor with numerous construction opportunities but without the skill to manage a construction project?
There is a joint venture partnership that addresses your need. The joint venture partnership based on construction management is the solution you seek. It allows you to leverage the expertise of an experienced real estate developer in delivering construction projects.
Here is how it works, you provide the construction opportunities, and the real estate developer makes it happen. Indeed, a beneficial agreement!
Joint venture Partnership based on connections
This partnership may exist between real estate developers and realtors. It happens when realtors have clients who are interested in having custom-made property.
In this case, the developer signs a contractual agreement with a realtor to build a customized home fit for the client.
Anyone can be a real estate investor. As seen with the list, joint venture partnerships can take different forms in as much as it is beneficial to the parties involved. However, it is crucial to scrutinize the other party you are looking to form a joint venture partnership with; from the proposed joint venture proposal to the mode of operation. Ensure that you both are well-aligned to the identified goal.
Are you ready to take advantage of these joint venture solutions to scale your business and create a profitable investment? Contact us.
Tel: 01 715 9995, 01 715 9996
James Cubitt Developments provides several joint venture partnerships to help you accomplish your real estate aspirations.