Joint ventures allow investors to pool complementary strengths. Common JV structures:
- Money partner + operator: One party provides capital, the other finds deals and manages execution. Profits split 50/50 or per negotiated terms.
- Equity split deals: Multiple investors each contribute capital for larger acquisitions
- GP/LP structure: More formal syndication-style with general and limited partners
Key JV documentation:
- Operating agreement (how decisions are made, profit splits, exit rights)
- Personal guarantees (who is on the hook with the lender)
- Buy-sell provisions (what happens if one partner wants out)
JV partners should always work with a real estate attorney to formalize the agreement before deploying capital.
Related Terms
Real Estate Syndication
A pooled investment structure where a sponsor manages a deal and passive investors provide capital.
LLC for Real Estate
Limited Liability Company — a legal entity used to hold investment properties and limit personal liability.
Due Diligence
The investigation process a buyer performs before closing — inspections, financials, leases, title, and legal review.