Benefits of Joint Ventures in Property Management
Mutually beneficial and mutually profitable, joint ventures are very popular in the world of property development and property management. Used by builders and developers to secure funding and resources and by investors to find projects that offer the opportunity for profit, joint ventures bring a range of benefits to all parties involved.
Often, builders and developers enter into joint ventures with banks, lenders or professional partners who have access to funding. This can be a huge benefit, especially for small-scale projects that need an injection of cash to get them off the ground or drive them forward.
Often, both partners in a joint venture will bring a unique set of specialist skills to the enterprise. Where one partner might have access to funds and experience dealing with investments, the other may have extensive expertise in building, property management or development. By bringing these two skill sets together, joint venture projects can draw on a wealth of knowledge and experience when planning and executing the business plan.
All too often a lack of funding leads to a build, development or management project being delayed. When there’s not enough cash left in the kitty to buy materials, pay staff or cover unforeseen expenses, the whole project can grind to a halt, driving up the cost of the project and slashing profits.
By entering into a joint venture, businesses and investors can ensure they have the cash in place before they begin, helping to bring the project in on time and on budget. The contacts of one, or both, parties may also potentially be used to speed up the process and navigate the world of property management.
Investors who want to put their money in property often struggle to find the right project to invest in. A joint venture provides investors with a fantastic opportunity, allowing them to put their money into a lucrative build or development and potentially rewarding them with significant returns.
Once the joint venture is complete, the partners will split the equity or shares between them. If everything has gone to plan, this should provide all parties with a good profit which can then be invested or taken out and used to fund a new venture.
If you’re thinking about teaming up with an investor for your next build, or if you have some cash that you want to put into bricks and mortar, a joint venture might be the perfect solution. Get in touch with us today to find out more.
To find out more about the local and national property market, or if you would like to chat about anything to do with property investment, give us a ring on Norwich 01603 567804 or send us a message.
For more free tips on Property Investing SIGN UP HERE.