Property & Landowners - The Benefits of a Joint Venture
Many landowners may not realize that they can increase their profits by forming a joint venture and developing their land instead of selling it. In this example, by working with our company, a landowner would collaborate with our professional development team and receive a percentage of profits from the finished project. This strategy can work well for individuals who wish to invest in real estate but may not have the time, skills, or funding to succeed. That’s where our company comes in.
Our Joint Venture solution-based mission aims to:
Connect property & landowners (you) with a capital partner (us) as a means to optimize a profit-generating real estate development for both parties. You’ve got real estate and a goal to earn income from it. We’ve got the investment money, and the hard-earned reputation and experience, to make that goal a reality.
There are many reasons why a real estate joint venture can be an ideal investment for all parties involved. Our company’s priority is to make the joint venture process transparent, efficient, and successful for our client partners. That means:
- No upfront cost to invest in a joint venture with us. We pay all fees and expenses associated with the development project.
- Our clients become equity partners, sharing in the profit of the development. We currently offer equity partners an estimated 50% share of profit.
- It is critical that our joint venture offers a favorable solution and outcome for everyone involved.
- By transacting directly with our developers, you eliminate the need for a broker to acquire or sell real estate investments and avoid any broker fees.
- We pride ourselves on being flexible to our client partner’s unique and diverse needs and requirements.
While every project has unique needs that may impact the timeline, most projects take between 12 to 24-month timeframe. Factors such as the scale of the project, civil engineering/construction elements, and other unforeseeable circumstances may all impact the project timeline or cause delays in the project schedule. That said, our team is experienced in project management and works alongside all of the trades to ensure the project stays as close to the timeline as possible.
Our company believes in seamless and transparent communication between equity partners. Some of our client partners wish to remain updated on important elements of the development phases, while others enjoy the freedom of not having to worry about the day-to-day details and operations. We will work with whatever communication style suits you.
No, there is no upfront cost to invest in a joint venture with us. We pay all fees and cost associated with the development project so that you can relax and enjoy the fruits of our labor.
After the construction of the project is complete, our company refinances the capital we invested and all parties get back their initial investment. What this means is that the land or property owners retain that value of the land or property.
During the first year, we take the conservative approach by not touching the shared profit. However, each equity partner will begin to split the profit per our JV agreement after the second year.
Dependent on the written joint venture (JV) agreement we’ve established, either the joint venture LLC will hold the title or a lawyer appointed by the joint venture LLC.
As experienced professional developers, we pride ourselves on wielding our expertise to manage a successful development and construction project. We will assume the responsibility for handling all project management tasks including: coordination between consultants, professionals, and labor trades as well as managing the budget and development timelines.
We invest our time in the logistics of the project so that you do not have to worry about the intricacies of development. However, if you wish to be more involved in the development process, we will be happy to discuss a plan and accommodate the needs of all parties to ensure a favorable project outcome.
To ensure a streamlined process, avoid complications and additional cost, it’s advisable to form a real estate JV when real estate is indeed free and clear of mortgages and violations. However, in some cases, we may be able to accommodate an alternative situation where our company purchases the mortgages and assumes any associated violations.
We will perform complete and thorough zoning and marketing analysis (or feasibility study) at no cost to you. Our feasibility study will determine if a project is ideal and viable for all potential equity partners. You risk nothing by contacting us to see if an investment partnership is possible.
As the developers, our company assumes all of the financial risks in initiating the joint venture. Because we will invest initial funds required for market analysis and feasibility study, we do ask for a commitment from our client partners in the form of a contract. The agreement ensures that all parties understand the terms associated with a real estate joint venture and are fully committed. If for some reason, our market analysis deems the project unviable, you (as land/property owner) would receive your property back, retaining full ownership and rights, without incurring any project fees.
Yes, we will! All projects are unique and diverse in their needs. If a situation arises in which moving or rental costs should occur, our company will take care of any expenses incurred during the project construction.
Our company develops projects that, upon completion, may be offered as either rental or for sale. Based on our initial marketing analysis, we will determine which method would be most suitable and profitable for our joint venture.