Critical Planning Points – In Real Estate Partnerships and Joint Ventures
In a perfect partnership or joint venture (JV), the parties combine their disparate skills and resources and create a whole that is greater than the sum of the parts. Each party trusts the others to act in the best interest of the JV, and no party abuses that trust. Each party is allocated responsibility and authority consistent with that party’s skills, and no party interferes with any other party’s performance of its functions. The economic returns from the venture are divided in a manner that is commensurate with the respective contributions of the parties; all parties believe they are fairly compensated; and tax burdens are minimized. View full article (PDF).
This article first appeared in BUILDERnews Magazine.