Customized Strategic Joint Sponsored by TOPAZ
- Access to institutional-grade capital
- Competitive financing rates
- Commitment to forward purchase
- Increased certainty to close
- Leverage TOPAZ’s acquisitions and development expertise
- Professionally managed property
- Negotiated ownership control & participation
- Top-tier loan terms
FAQ’s About Real Estate Joint Ventures
A real estate joint venture (JV) is a deal between multiple parties to work together and compile resources to develop a real estate project. Most large projects are financed and developed as a result of real estate joint ventures. JVs allow real estate operators (individuals with extensive experience managing real estate projects) to work with real estate capital providers (entities that can supply capital for a real estate project).
As mentioned above, most real estate joint ventures are comprised of two separate parties: the operating member and the capital member. The operating member is usually an expert on real estate projects and is responsible for the daily operations and management of the real estate project. A typical operating member is usually a highly experienced professional from the real estate industry with the ability to source, acquire, manage, and develop a real estate project. The capital member usually finances a large part of the project or even the entire project.
In a Real Estate Joint Venture, each member is liable for profits and losses relating to the joint venture. However, this liability only extends as far as the particular project that the joint venture was created for. Aside from this, the joint venture is separate from the members’ other business interests.
In most cases, the operating member and the capital member of the real estate joint venture set up the Real Estate project as an independent limited liability company (LLC). The parties sign the joint venture agreement, which details the conditions of the joint venture such as its objective, the contribution of the capital member, how profits will be split, delegation of management responsibilities for the project, ownership rights of the project, etc.
However, a real estate joint venture is not limited to an LLC. Corporations, partnerships, and several other business arrangements can all be used to set up a joint venture. The exact structure of the JV determines the relationship between the operator and the capital provider.