• Facebook - White Circle
  • Twitter - White Circle

Joint Ventures

A real estate joint venture is usually general partnership formed to undertake a project and is intended to exist for a limited time period. Real Estate joint ventures typically exist for 5-7 years. In a joint venture, the sponsor/operator and one or more investors agree to share capital, human resources, and experience under shared control. A joint venture is treated like a partnership for federal income tax purposes.

 

 

Joint ventures are usually formed by creating a joint venture agreement in a Limited Liability Company structure (“LLC”).  The governance of the joint venture is contained in the operating agreement for the LLC.  Joint ventures provide sponsors with equity for acquiring and improving real estate projects.  Capital providers need experienced operators and developers to effectively deploy their capital into real estate.