Sharing the ownership of a business can have significant benefits such as additional access to human and financial capital. When it comes to property investments, shared ownership permits owners to disperse the financial risk, and may even help secure a larger investment on the forefront.
A joint venture agreement is any limited-purpose business venture between one or more partners, and is not as uncommon as one may think when it comes to securing a better ROI with income property. Joint venture agreements can be classified as LLCs, corporations, general partnerships or contractual relationships.
In any scenario, whether your business partner is a friend or even family member, it is highly recommended that each party documents the terms of its relationship. Contracts for the sale of real estate or long-term loans should always be enforced by a court of law in the event that there are any misunderstandings or disagreements between owners.
If you have decided that a joint venture agreement is the right opportunity for you and have teamed together with a friend or family member for the particular purpose of property investment, where do you begin?
Hillsborough County Foreclosures
Graystone Investment Group has been helping joint ventures secure Hillsborough County foreclosure properties for quite some time now. Why Hillsborough County? Hillsborough County has tremendous opportunity for long-term return on investment. Property values have dropped significantly everywhere, but especially in the State of Florida. And surprisingly, rentals have not been affected by this downturn. The rental occupancy rate in Tampa Bay is averaged at around 92%.
While investing in Hillsborough County foreclosures may seem attractive, the upfront costs of flipping a foreclosure property can sometimes be more expensive than planned. However, in a joint venture scenario each member of the joint venture shares the expenses of the property, just as they’ll share the income of the property in the future.
This significantly lightens the financial burden on the front end, while still securing long term income opportunity for the future.
If you are involved in a joint venture, or currently looking to engage in a joint venture agreement, fill out an investor profile today. You’ll learn why we’re able to deliver capitalization rates of 10%, 15%, 20% and higher to our joint venture property investors. Hillsborough County is one of the best places to invest in cash flow rental properties, and we are here to help you succeed in your investment.
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