Joint Venturing

Factors to Consider in Joint Venturing 

Now that we have a broad understanding of what we mean by ‘joint venture,’ let’s look further into some of the key elements of this type of partnership.

Relationships
When it comes down to the nitty gritty of getting your development underway and ultimately completed, it’s incredibly important to be able to trust and get along with your joint venture business partner or partners. This is also important when it comes to the distribution of liability. Two friends with an equal stake may be happy to share the liability, whereas multiple investors with no prior dealings with each other may want a structure that enables them to limit their liabilities.

Liability
It’s important to consider a structure which limits liabilities and has the option to ring-fence losses. Property development can be tricky and carries huge risk for developers and their partners at every juncture of the process.

Funding Arrangements
When considering the structure of a joint venture, the funding arrangements are an extremely important factor in your decision-making process. Is the funding split equally between two investors? Is it a series of smaller, different sized investments? All of this will have to be ironed out so your investors can consider and protect their position(s).

Flexibility
You may think that changing the arrangement between investors could be an option part way through the project, or you may feel that, at some point, further investment from a newly interested party will likely be required. If so, you need flexibility built into your agreement.

Tax Implications
Boring though it may be, tax implications are often at the heart of setting up a JV, particularly in certain types of structures. All parties need to consider the role of tax and understand how it affects their position. Again, this is an area where independent, professional advice is something you should seek and be willing to pay for.

Looking to Invest in Property?
We understand that most investors have a busy life and don't have the time to be driving back and forth to your projects or any investment area, negotiating and building relationships with countless agents, having your time wasted and being rejected over and over again. Trust us, it's hard work and you need to devote substantial time every day.

We are open to new joint venture partners that wish to build a portfolio of high-yielding property investments, without having to go through the pain and hard work.

​Your return on investment will depend on the amount of funding you bring on to the table ranging from £5k to 100k.

Want to know more. book a meeting here