Subdivision Construction Program

Joint Venture

Instead of trying to obtain financing for your project why not have a partner that will finance everything for you. Yes you will take on a minority equity partner who will take 40% of the profits - it could be worth it for you. 

Is giving 40% Equity in your project worth it?

Lets assume you are looking to construct a hotel at a cost of 40 million. If you Joint Venture (JV) with a partner you will give up 40% equity in your hotel project.... but you will get your hotel built with no money out of your pocket.

You will be required to put 10% of the project cost into an escrow account that will go back to you when the project is completed. You will also have to pay $7,500.00 to cover the cost of the attornies fees and other costs associated with setting up the JV. These fees are nothing compared to the overall cost you would pay if you had to finance the deal. A 40 million dollar loan at 10% would cost you 20 million in interest over 5 years.

JV can work with almost all types of projects from Building an Apartment Complex, Storage Facility, Residential Building Community, to building a mall or a golf course or even buying an existing business.

If you have a new or an existing project and would like to partner in a joint venture give me a call at 704-490-4733.