Real Estate

Joint Ventures - The other side of the coin

  • Last Updated:
  • Nov 7th, 2020 6:01 am
Jan 10, 2018
12 posts

Joint Ventures - The other side of the coin

I'm looking to get advice from investors with specific knowledge or personal experience in Joint Ventures.

I have been approached by an investor who would like me to be the money partner in this particular deal.

I have my own investment properties but I have zero experience in JV aside from what I have read in books.
The problem is that almost every book or article explains the benefits of this partnership from the point of view of the hands on guy/manager/developer where they are using Other Peoples Money etc...
No one ever talks about the benefits or risks for the money partner or even how to structure the deal so that you are protected.

I know I need to talk with my lawyer but thought I would check here for any personal experience.
Got any advice to share or website/books you can point me to to learn more?
4 replies
Jun 6, 2014
296 posts
Toronto, ON
I think you summarized it: Other peoples money.
Jan 10, 2018
12 posts
I'm familiar with the concept from that side of the deal but not so much with being the "Other Person" as in the money partner
Deal Addict
Mar 2, 2017
2950 posts
It should be pretty straight forward based on their pitch...

What's in it for you, what are they doing for their cut? Or did someone approach you pitching a "JV" when in reality you are being used as a private lender, except you don't get the yield you can and carry more risk in the way of less control (which is what a lot of this junk is)?