What is a Joint Venture?

The objective of a Joint Venture is to partner up with the Property Owner in an attempt to make both the Property Owner and the Developer more money than the traditional transaction, where the property owner simply sells the land and the developer buys it.  The Developer will use the equity that the Property Owner has in the property to cover the equity requirements of the development project.  The Property Owner will end up making a substantially larger return on their original investment and will get to observe their property as it goes through the development.  This will be a winning situation for all parties involved.

Alfred Construction, Inc. Teams Up with Property and Land Owners for the Purposes of Joint Ventures

Alfred Construction, Inc. is now offering to Joint Venture with Property and Land Owners looking to maximize their land value through development.  This is a fantastic opportunity for Property Owners to get the maximum current value for the land and not have to deal with or pay expensive broker fees.  The Property Owner will be able to see their property grow into a developed community.  The Property Owner may potentially take advantage of a beneficial tax position through the Joint Venture.

Alfred Construction, Inc. and the Property Owners will come to an agreement on a Joint Venture operating agreement.  The typical Joint Venture deal will involve the Property Owner initially getting paid a percentage of the present land value.  The Joint Venture LLC will obtain a trust deed loan to cover the land entitlement.  Upon entitlement, the Joint Venture LLC will pay another percentage of the original land value to the Property Owner.  The LLC will then obtain a construction loan to build the project.  Upon the completion of sales, the Property Owner will have been paid out the value of the original land and they will also receive a percentage of the net sales proceeds of the finished developed project.  Other methods of Joint Venture will be considered, should the Property Owner offer any such to the Developer.

If you are interested in a Joint Venture relationship with Alfred Construction, Inc., please feel free to contact us.