Hi Guys,

In our last blog we discussed a little about why people would do a Joint Venture. To add to that I am going to discuss today what some of the benefits of a JV are and where you need to be careful.

A Joint Venture is where two or more organizations team up to work together on a specific venture, pooling their resources, normally for a short term while remaining separate entities. For example, two companies may form a joint venture to undertake a major development project that neither can do on its own.

The following are some of the many benefits that come with doing a Joint Venture.
➢ Combining your resources and assets with somebody else’s allows you both to take on a project neither of you would otherwise be able to.
➢ You will get to access new skills, knowledge and experience - saving you time and money or possibly the other way around.
➢ You will have access to greater resources, beyond your own.
➢ You will have the opportunity to boost your market penetration and build strong associations within the property industry.
➢ There is no rule or limit as to what is allowed or not allowed as far as JVs go.

If you have completed our home study course your knowledge and expertise will be immense but perhaps you need the capital to see your ideas become a reality. You will then seek someone who has the capital but no idea how to use it. A Joint Venture in this case would see you both profit.

There are of course some things that you need to be aware of and some factors you must consider such as trusting and liking your JV partners. If something does not feel right then it probably isn’t. A JV agreement defines the terms and conditions and records the interests of both parties. It will provide you with strong legal recourse should a misunderstanding arise and the other party fails to fulfill its obligation while under contract.

Remember; You should leave the JV arrangements to your lawyer to ensure your interests are well protected.

That’s all for now guys!