Matthew Cullum Property Blog
The property industry has many different types of ways to purchase and buy a property and one of these ways is the joint-venture option. The joint-venture option gives you the ability to partner with other property developers and investors to pull your money together and Leveridge the money to purchase property. There are a number of considerations to think about when structuring a joint-venture and it should always be a consideration to utilise the services of a solicitor and also an accountant to make sure it is structured properly.
The industry of joint ventures is quite a closed area where usually the property by will be partnering with someone they know and trust and he’s kind of relationships can be beneficial to purchase the property together. But it should always be remembered that the detail is in the fine print and you should always have a contract and legal advice before entering and embarking on such a relationship. When it comes to developing and later selling the properties they can be a number of issues that arise particularly if the figures are not as expected. Therefore it is wise to have paperwork that sets out all of the details and into notes of the transaction and the relationship between the partners.
If the joint-venture partners do not know each other this can be even more tricky and can throw up issues that should be always dealt with by a advisor both from a legal perspective and also from accountancy perspective. There are usually important tax considerations to take off and an accountant can be very useful when it comes to recouping money from the sale of any property. Both parties should have their own legal advisers and should always get their own separate legal and accountancy advice. The Matthew Cullum blog will be able to help and provide resources and advice for JV partners of all descriptions.
Many times a joint-venture partnership can be fruitful for all parties concerned if it goes well, there is always a benefit to being able to pull their money together and also use bank funding as this can give you a potentially greater profit margin at the end. It will also enable you to purchase larger developments and properties and you would usually be able to on your own. The joint-venture industry thrives year on year as Developer’s partner together to not only increase their funding but also to spread the risk of any property deal. The risk elements in property are always there and it is a great advantage to be able to share that with someone that is in the in the same boat as you and also knows the risks associated with the transaction.
The Matthew Cullum blog regularly provides help and resources for the JV industry and market updates can be useful in this area. We also can provide very useful websites that can offer property deals and also help and advice on the joint-venture industry. As said before you should always get your own legal and accountancy advice in all areas before you embark on any relationship regarding JV property. Please register for more information and we will be happy to help and provide more details on the subject.
“Property joint ventures can be mutually beneficial to all parties in pooling resources to develop property.”Matthew Cullum Blog