Joint Venture Opportunities

What’s a joint venture?

As we’ll find out in this article, there are many different types of joint ventures, but all of them share one common feature: they are a combination of partners, pooling their resources (financial or otherwise) to maximise efficiency and output whilst minimising financial risk.

What are the different types of joint ventures?

Though there are many ways to vary the type of arrangement you have with your JV partner or partners there are four main types: A joint venture with a business partner.

This business partner might be a family member, a friend or a colleague from work, but whoever it is, you all invest on an equal basis and retain equal voting rights. You spread the risk, but you also increase the amount of capital that you have to invest in your chosen development. A joint venture with a “skilled partner”. In this type of joint venture you are entering into a partnership with someone who can add technical or practical skills and knowhow to the project to complement your financial investment (and/or other skills). You may choose to partner up with an architect for design purposes or a builder for practical construction expertise (these are just two examples). Using an experienced property development firm. In this instance you’d be providing the capital for a firm to do all of the work from design to handover; this is a more hands off approach, which will likely limit your bottom line the most. With a majority investor. In this instance you’ll be partnering with someone who has more financial means/backing than you do and so will invest a bigger stake. They will likely take more of a back seat and let you run the project. Think Dragon’s Den.

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