Joint venture financing for commercial property
Joint venture financing is a means of structuring a mortgage in order to help you, the client, maximize cash flow potential. How? By "teaming" you with a lender as an investor.
Definition of a joint venture: similar to a partnership in that it must be created by agreement between the parties to share in the losses and profits of the venture. It is unlike a partnership in that the venture is for one specific project only, rather than for a continuing business relationship.
In this case, the joint venture concerns commercial real estate and the lender-borrower relationship. Borrowers do not always start out looking for partners, but sometimes recognize the value of sharing equity over "straight" debt-financing.
Structured Joint-Venture Financing can be complicated and is not appropriate for all projects. Provide us with some information and we can give you a free matched list of commercial real estate lenders and equity investors. When contacting any of your matched funding sources, be sure to inquire about joint venturing.