Have you thought about a better approach that helps you tackle big real estate projects as a real estate developer? Do you have access to more resources to achieve your real estate aspirations?
Thanks to joint venture partnership, the answers to the questions above can be in the affirmative.
In this article, real estate investors may be real estate businesses such as development companies, construction companies and other real estate related entities.
What are real estate joint venture solutions?
Real estate Joint venture solutions are partnership options available to real estate investors to accomplish more than they can do on their own.
Whether you are a capital provider, asset owner, or institutional investor, a joint venture partnership is an opportunity that expands your reach and potential in the real estate industry.
Why is it important to know the different joint venture partnerships available to real estate investors and developers?
Not all joint venture partnerships are based on money or an investor’s financial capability. There are several ways real estate investors can come together to make investments happen.
Here is a list you can take advantage of:
Joint Venture 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 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. Joint venture partnerships based on finance usually features more than two partners.
It is a co-investment deal between multiple parties – the operating partner and the capital partners (they are most often more than one).
The operation partner is the real estate professional with the expertise to develop the project, while the capital partners provide funds to finance the real estate project.
Joint venture based on Acceptability
As a real estate developer, do you perhaps have the capital to fund your real estate projects and the expertise to bring them to life? But maybe the challenge might be with you gaining more acceptability in the industry because you are new and just starting in the business.
You might want to consider a joint venture with a renowned real estate developer to scale your business and build credibility in the real estate development space.
Credibility for real estate developers means more investors. Thus, the reason joint venture partnership based on acceptability becomes a solution.
Joint venture based 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 project.
Here is how it works, you provide the construction opportunities, and the real estate developer makes it happen. Indeed, a beneficial agreement!
Joint venture based on connections
This joint venture 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 to suit the client’s expectation.
As seen with the list, joint venture partnerships can take different forms in as much as it is beneficial to the parties involved. However, you must scrutinize the companies you are looking to form a joint venture partnership with, from the proposed joint venture proposal to the mode of operation, ensure you 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 provide tailored joint venture partnerships to help you accomplish your real estate aspirations.