What are the elements of a winning Joint Venture Offer?
1 year ago
Real estate joint venture transactions have over the years gained popularity as a real estate investment opportunity. In recent times, property developers, landowners and real estate agents have been seeking each other out in a bid to get the best out of joint venture transactions, particularly in highbrow areas such as Lekki, Ikoyi, Victoria Island, Ikeja, Surulere, Yaba in Lagos state.
There are joint venture deals, and then, there are fantastic joint venture deals. Certain elements/features distinguish the regular from the executive. Below is a list of features (in no specific order) that make a JV deal irresistible to potential real estate developers.
Good Location: Location and real estate are like a pair of Siamese twins, it is no doubt one of the most important factors in real estate investing, thus, property developers are always on the lookout for location known to experience high rate of sale or lease demand/occupancy rates. You can check out our piece on some of the most sought-after locations for joint ventures in Lagos state.
Feasibility/Viability: The knowledge that the proposed development is not only probable but also potentially profitable for all parties involved. No one ones to put their money into projects that will earn them little or next to nothing in the long run just as they do not want to embark on projects that will leave their resources hanging in the balance.
Professional Facilitator/Agency: Few things pique property developers’ interest in a joint venture offer than the assurance that they are dealing with a broker or outfit worth their salt. A professional facilitator amongst other things makes sure that there is a clear and well-defined line of communication among parties to the joint venture transaction, they also assure the developing company can that they are dealing with individuals/entities with proprietary rights to carry out such transaction on the said property.
In addition to these, being able to ascertain that the owners of a JV property are willing to enter into a joint venture as well as the knowledge that title on the subject property is unencumbered also makes a joint venture offer interesting to potential developers.