A joint venture can be the key to putting an incredible real estate investment together. But don’t let your enthusiasm override your common sense.

Joint tenancy and tenancies-in-common are probably familiar to you as ways of sharing ownership among family members. Joint tenancy means that each “tenant” (who needn’t be a resident) has an equal undivided interest in the whole property. For example, if there are three joint tenants, each owns a one-third interest in the whole property. This isn’t a good ideal for people who aren’t closely related, because if one of them dies, his or her share of ownership automatically passes immediately to the surviving tenants. No tenant can bequeath or transfer his share to anyone else. The purpose of this form of ownership is to avoid having the property tied up while the will is probated and the estate settled.

Today smart investors are putting together syndicates that can buy big properties. Wouldn’t you rather own 5 percent of a milling-dollar property than all of a $50,000 house? Big investments tend to be better investments. Even a $100,000 apartment building is likely to be in bad shape, while a $10 million apartment complex is prime property – it has usually better tenants and faster cash flow. Its value rises more steadily. And the actual risk to its owners is less than in small properties, even though more dollars are at stake.

When you investing in real estate, you can pool your resources with other people and share ownership of the house.

Partners can bring in money as well as skills and the idea of partnership should not be overlooked. Giving someone an ownership interest in exchange for work, capital, or risk may be a sound strategy, particularly for first-time investors.

Joint Ventures In Real Estate Development; So How Do They Work?

There are many reasons why you would consider joining with another person to undertake a development project in Joint Venture.