10 Advantages of Real Estate Joint Venture

Has anyone ever had the experience of having so many ideas in your mind with no capital to carry it out? This calls for innovative method to raise or find funding. This sort of way is via a joint venture.

What is a joint venture?

A joint venture is a business arrangement where two r more organizations or individuals agree to bring their resources to try and do a certain project. An organization may have a certain resource and looks for a second organization with development funds to accomplish a project.

Its different from a partnership because in partnership, persons come together to run a business but a joint venture is for a specific business or venture and for a specified period of time. It promises greater benefits for the parties but it also have potential of bringing certain challenges.

What are the advantages of a joint venture, not simply a joint venture Kisumu?

Advantages of a Joint Venture

1 – New insights and expertise

Forming a joint venture will enable you to gain more knowledge and expertise in a certain area or activity or even market. Whatever insight or expertise to gain is dependent on whatever the joint venture what formed to achieve.

2 – Better resources

A joint venture will enable you to access better resources, financially, skills or technology. As an expert in joint venture Kisumu, we have seen individuals and organization benefiting immensely from a joint venture arrangement because f the resources which the incoming partner brings.

3 – It is only temporary

A joint venture is formed to last for a long time, many lasting for 3-5 years. This period is enough for the project to be completed and investments to become recovered back. Many people would not want a lifetime joint ventures. When implementing getting a joint venture partner, you should imagine a project that can be done and returns realized within this period of 3-5 years.

4 – Both parties share the risks and costs

The cost and risks are shared by both parties. This is very likely to minimize risks for all parties. Since you share risks and gains, in addition you will share losses in agreed ratio.

5 –There are ways to exit a joint venture

There is always means and channels of exiting a joint venture. If a joint venture is not working as envisaged, then an exit strategy exist for you to come out.

6– You will know what’s yours and is going to be able to sell it

In a joint venture, you would have clear picture of what will be yours and just how you will receive the money worth of your share in the joint venture. For instance, a joint venture for apartment for sale will clearly show you the number of units which belongs to you and what amount you will get when they are sold and even during when they are rented out.

7 – You are more likely to succeed

A joint venture gives you a higher chance of succeeding as a result of the incoming parties bring competence, market presence and resources which you currently don’t have and also a result gives you a better chance of success.

8 – You will build relationships and networks

Joint ventures assist in building business relationships and networks that are generally long lasting. From each of these networks and relationships, more jobs can be created.

9– Your potential will virtually be limitless

Joint venture makes your potential virtually limitless while you stand an opening of achieving considerably more through joint ventures. You'll surely have partners and momentum to go far.

10- International joint venture eradicates the risk of discrimination.

Globalization has given birth to international joint venture and more companies are embracing it. This can be a greater opportunity to work together with people from all of any age bringing together dynamic training and experience.

Are you thinking of connecting to a joint venture? You are in the right place you become your joint venture partner or connect you utilizing a joint venturepartner in Kisumu and beyond. Have a discussion with us today and let see how we get on with your journey to connecting with a joint venture partner. WestKenya Real Estate Ltd has successfully presided over formation of a few different joint venture businesses.