A real estate joint venture poses a lot of headaches for the people at the top of the partnership, and they will often claim that they have one of the toughest jobs in business. This comes as no surprise since it is their job to ensure that they meet the strategic, financial and operational expectations of their shareholders.
The management arrangement of a joint venture can be quite complex since authority has to be delegated on both sides of the partnership, but usually, the higher the capital percentages are for capital member funds, the more authority they have. The transaction process between the two parties can often become difficult and complicated and so having a corporate lawyer can help significantly.
What is a real estate joint venture?
A real estate joint venture plays a pivotal role in developing and financing real estate projects of great magnitude. It is when two or more parties come together and agree to invest some of their resources into a specific building project.
For example, the partnership allows individuals or businesses with capital to help fund a real estate project that will be carried out by professionals whose expertise is in managing and developing real estate projects. There are a number of factors that contribute to making a successful joint venture, and investing in a corporate lawyer can significantly improve your chances.
Why invest in a corporate lawyer?
From the beginning right to the very end of a joint venture partnership, a number of things can go wrong with the transaction process. For example, parties within the joint venture may disagree on the direction of the partnership and may wish to review all options and even exit rights. Real estate corporate law firms as established as Goodwin will bring a comprehensive understanding of the possible issues and conflicts that may arise in a joint venture as well as being able to use their expertise to help guide you in the right direction.
Benefits of a Corporate Lawyer
To begin with, corporate lawyers spend their days researching and digesting every little bit of possible information about the recent changes that have taken place in the market. This means that they will have a lot more valuable information to offer when making transactions and know what the best responses are to political and economic change. Examples of the benefits available include:
- Bringing their comprehensive understanding of the nature of joint ventures to make relationships between parties more secure through counselling and balanced advice
- Unpacking and explaining complex debt transactions
- Implementing tax structures
- Ensuring all business transactions are in compliance with the law
- Helping to sell or recycle real estate assets
Hopefully, this article has been helpful and informative when it comes to explaining what a real estate joint venture actually is and details the benefits of investing in a corporate lawyer.
March 28, 2018