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Should I Invest As A Joint Venture Partner?

So, you’ve looked at syndications already and decided that they are not for you. Maybe you want more control, or you don’t want to have too many different parties involved in the transaction. Whatever your reason, you decided this wasn’t the right investment vehicle for you.

You have also thought about doing a deal by yourself, but you lack some of the resources or skills to get the deal done by yourself.

It seems like you are stuck.

What now?

Do you sit on the side lines and watch opportunity pass by or do you just give up on your real estate investing dreams all together?

I’ve got some good news for you:

There is another option!

Joint ventures allow you to partner with others but avoid the multiples of partners that would be involved in the deal if you chose the syndication route.

What Is A Joint Venture Partnership?

For the purpose of this article we will be defining joint ventures as a temporary partnership for a designated or series of designated transactions where all partners are active members of the partnership and there are no limited/silent partners. This partnership would be formed to complete a specific transaction such as the purchase, management and eventual sale of a real estate investment. Said differently, everyone in the partnership is putting in work and potentially also money as part of their involvement in the deal.

So now that we all are on the same page as to what a joint venture is let us discuss why anyone would even be interested in using this as a means for their investment vehicle.