Joint Venture In Real Estate

[moonchild]

Joint real estate venture is one of the popular ways to approach real estate, it consists of different real estate experts coming together with funds to create a portfolio of real estate, there are different steps included in joint venture or JV as it is popularly known.

The two types of joint ventures are, where two or not more than ten investors come together and pull resources to buy or develop real estate, the second one is where the joint venture is open and anybody can join with a fixed amount, this is how must joint venture operates, they give investors documents to sign and anybody that contributes owns a share from the real estate and when it's sold or rent out they share the profits.

Well, one may ask, how do they deal with liquidity and how they approach loses, well, liquidity is always discussed with representatives of joint venture platforms before you invest your money in their scheme.

Because of this many fraudulent joint ventures are created and after sometime they'll release a bankruptcy report and all of Investors money is gone.

But apart from that joint venture is one of the ways an average joe can get a share out of the real estate cake.

 

[kayode10]

Joint venture gives people with less resources to pull fund together in order to acquire a real estate property. I think it is very important to engage in agreement written down before they can go ahead and do the joint venture. This will ensure that there is no problem when do you want to share profit.

 

[sincerem]

I've heard about different individuals entering into joint real estate investment. At times it isn't about money, some have the money but the idea to develop a profit making venture is way off from them. In order to drive the success they wishes, they simply attract another of their friend, or colleague that got better plan and money as well..they simply collaborate to develop real estate which a proven chance of success instead of being a ruined one in the future.

 

[General01]

The growing evidence of fraud in this field calls for caution for anyone that intend to venture into this field
It would be important that you know who you are partnering with and verify their credibility and existence before entrusting them with your money in such joint venture

 

[Alexandoy]

To be frank, I am scared of going on a business venture with partners whether it is real estate or any other business. We have a family friend whose mother inherited a big land in the rural area but it was nearing to be considered a suburban town (now it is already a city). Our friend's family is middle class and they have no resources to develop the big land of 40 hectares. What they did was to enter into a joint venture with a developer. The land was subdivided and selling was started. In fact, my mother was a freelance agent that she was able to sell more than 10 lots. When the computation came to the hands of the owners, they saw that they were at a disadvantage because the developer was getting the bigger slice. The distribution was not even. Unfortunately the developer has a lawyer that created the contract of partnership that in the end our family friend couldn't do anything. I had a lot in that village that I sold after 5 years.

 

[Sotherefore]

Sometimes we have to be so sceptical about any form of investment that involve different people coming together to invest in one property , if they really have so much money to invest in real estate I believe it could have been a wise decision for them to invest in an area of land separately together in an open space, if they can be able to invest in large acres of land they can use the large hacter of land to create an estate. And instead I am talking about what can be a a large hectare of land forming a community , this could have even been more profitable than investing in a property altogether because sometimes in most situations like these there is likely to be a problem most especially if you are dealing with untrusted and greedy people.. real estate are the type of investment that deal with so much money and one cannot afford having problem in this area of business.

 

[Setho]

The real estate industry is one of the industries that you are going to make a lot of head start if you are going to be willing to work as part of a group. For example if a property is going to cost you 10,000 dollars for you to acquire ordinarily that is a lot of money for one person to put out. You can then be able to share it and then develop it yourself. Whenever the property start bringing profit you can be able to share it based on how everybody invested at the beginning initially first .