A joint venture (JV) is when you and two or more parties club together to invest in a particular property project – whether a development property or the purchase of a ready-built bricks and mortar investment. The benefits of this type of scheme is that it allows you to invest in a scheme for which the cost would have been too prohibitive for you to go it alone.
Not only does a JV allow you to receive a cut of the income from the property, but you also benefit from the pooling of resources and knowledge. You are also spreading your risk were the scheme to prove unprofitable.
JV’s are structured in various ways ie a straight-forward partnership, limited partnership or limited liability company (the latter being the most popular form).
