Joint ventures are a relatively simple structure and are an excellent means by which to develop real estate. In their simplest and most typical form, real estate joint ventures combine the real estate expertise of a developer participant with the equity of a capital participant. Though this synergy of skills and resources has obvious benefits, poor planning in the initial stages can lead to an ugly break-up. A JV's success or failure depends not only on sound underwriting, but also careful preparation of the agreement that will govern the relationship of parties in an often high-stakes enterprise.
Here, we have worked with a number of real estate investors, including both developers and funders, and have become accustomed to addressing the needs of both sides. Clear language in the joint venture agreement is the best means by which to plan in advance and avoid disputes, but conflicts are sometimes inevitable. Though the exit mechanism we generally recommend can be an effective means by which a joint venturer can simply leave a contentious JV arrangement, our JV agreements will also typically provide for alternative dispute resolution, thereby avoiding the courts, or at least provision to establish the jurisdiction and venue for the litigation of conflicts.
With our office in Davis, we represent clients in Yolo County, Solano County, Sacramento County, and statewide throughout California. For more information, call our office today at (530) 231-4949.