The idea of a Joint Venture attracts a wide cross section of individuals.
Major real estate investment and development is frequently delivered through joint endeavors and private equity investment. Forming and shaping such joint investment is central to its success At Emirates Realty, our Agents will listen to your goals and work with you to tailor the structure to the venture and the parties’ specific needs. Whether matching capital to skills, ownership to management or sharing risk between participants, our Agents will apply their industry knowledge to help you select the appropriate vehicle and structure. We work with you to anticipate potential areas of commercial conflict and develop practical, appropriate mechanisms to resolve disputes. Our Agents recognize the need to plan the parties’ exit from any joint venture as carefully as its formation.
Joint ventures are all about the allocation of risk and responsibility. By working with you to identify potential risk and to understand the needs of the venture from capital to skilled management, our lawyers ensure that the documentation reflects the underlying commercial agreement. Emirates Realty’ clients have access to true real estate joint venture expertise.
There are so many reasons for entering into a joint venture. If you are thinking of going down the ‘Joint Venture” road, We can advise you .
In a joint venture you have to take into account another persons attitude, feelings, decision making process, (or inability to make a decision), whether they have a logical and sensible mind … the list goes on.
So, getting into a real estate development joint venture must have a good’payback’ for you … actually, for both parties.
Whatever you lack is usually the reason for entering into a JV. May be time may be money may be skill.
It would take ages to cover all types of real estate development joint venture, so lets concentrate on the following situation If it does not fit you exactly, you should be able to read between the lines.
- The other party may have a wonderful property (site) and wants to develop it, but does not have the knowledge.
- You “love” the site and know that you could make it a very successful and profitable real estate development joint venture.
- Maybe two individuals have saved their capital, however individually it is inadequate to undertake a project.
- Combining their capital and borrowing capacity will allow the real estate development joint venture to proceed.
- Irrespective, entering into a real estate development joint venture is ALWAYS second best, to doing a real estate development by yourself.
So you must be clear as to why you are doing real estate development joint venture, and it must be secured by a legally prepared and binding real estate development joint venture Agreement.
A Real Estate Development Joint Venture Agreement sets out what each party will contribute, both money and effort, and sets out each party’s obligations.
It also sets out what happens if the parties ‘fall-out’ with each other, as well as the division of profits or losses.
There is a lot more at stake if you joint venture with your relatives the term ‘on-going-nightmare’ is a phrase that readily comes to mind.
Oh yes, if a family real estate development joint venture brakes down, it doesn’t matter how many pages are in the Joint Venture Agreement, or what the words say to prove that you were “RIGHT,” … as far as YOUR relatives is concerned, you are a ‘expletive deleted’
doing a real estate development joint venture with a extreme rich person, when you are not on equivalent level, is also not smart. Why?
Well, in simple terms, Money Rules … you know the golden rule. He who has the GOLD, RULES.
Also, if the rich guy tell you not to bother with a real estate development joint venture agreement he/she appears to be saving you money on legal costs tempting ?
What he/she is really doing is taking away your legal rights. Yep, you’ll have less rights If that’s the deal better say NO!
You see you have less money than him/her and no real estate development joint venture agreement to refer to your Rights.
We prefer to do a real estate development joint venture with people of equal power with equal rights and with full legal binding agreements carefully drafted by our professionals.
Emirates Realty advises and guides you in all this and arranges the best partner for you in joint venture its not just about money, skills too matters .