What EXACTLY is a Joint Venture?
Description
What EXACTLY is a Joint-Venture? What exactly ARE Joint Ventures? How are they structured, and how do they work? At the most basic level, a Real Estate Joint Venture is a business agreement in which two people (or organizations) come together with the purpose of investing in and making money from a property.
In our Joint Ventures, Ontario Assets acts as the ACTIVE partner. Our strategy is to focus on investments with heavy cashflow, and we target a 30% ROI. Part of our role is to find a property, and structure a deal that works. As an ACTIVE partner, O.A does all the heavy lifting. From finding the listing, to renovations, to ongoing property management. We act as the boots on the ground. Our goal is to drive up the value of the investment and get that money back to the partnership.
Most of our clients act as PASSIVE partners. They are responsible for the initial capital, (usually the 20% down payment and some reno costs). The PASSIVE partner must also be able to qualify for the mortgage. Some of our clients have that capital as cash on hand, but we often work with people who borrow from family or against the equity in a home.
Because this is a partnership, it’s important for us to develop a great professional relationship with our clients. All agreements and responsibilities within the partnership will be put down on paper and reviewed by everyone’s lawyer. It’s important for all parties that things run smoothly. We want everyone to be on the same page when it comes to our investment goals and how best to reach them.
To learn more about real estate investing, visit our website: http://ontarioassets.com
Book your Strategy call today: https://calendly.com/ontarioassets/introduction-strategy-session
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