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Joint Venture
A partnership between two or more parties to jointly invest in a specific real estate deal.
Definition
A joint venture (JV) is a business arrangement where two or more parties agree to pool resources for a specific real estate investment while maintaining their separate business identities. Unlike a syndication, JV partners are typically more actively involved in the deal. Common JV structures pair one partner who brings capital with another who contributes expertise, deal-sourcing ability, or sweat equity. JVs are usually formalized through an LLC operating agreement that defines each partner's contribution, responsibilities, and profit split. They allow investors to take on larger deals or enter new markets by combining complementary strengths.
Related Terms
Syndication
Pooling capital from multiple investors to purchase a large property, managed by a sponsor or general partner.
LLC
A Limited Liability Company — a business structure that separates personal assets from investment property liability.
Operating Agreement
A legal document that defines the ownership structure, roles, and rules of an LLC.
Creative Financing
Non-traditional methods of financing a real estate purchase, such as seller financing or subject-to deals.
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