A joint-venture capital provider supplies the equity capital in a partnership with an operating partner who brings the deal, expertise, and execution, sharing ownership and returns according to negotiated terms.
Log in to followI've now read three JV operating agreements side by side and the only section that meaningfully differs is the major decisions list, the things the operator can't do without my wr…
Working through a first JV structure on a value-add deal. $4.5M of equity, my side $4M, operator $500k, 8% pref then 50/50. I asked for consent on sale, refinance, any new debt, t…
I sold a small business last year and have about 600k I'd rather partner with than operate myself. Two operators I've spent real time with have both sent term sheets for deals clo…
I'm going through a JV agreement for the first time as the equity side and the exit section is two sentences long. The operator "shall determine the timing and terms of any sale i…
This was the first time I've been the money rather than the person selling a service, and I nearly talked myself out of it four times. Operator was a contractor I'd worked with on…
Third pass through a 63 page operating agreement for a 6.8M mixed use JV. I'd be 2.1M of a 2.4M equity check, operator brings 300k plus the deal. 8.5% pref, 70/30, standard enough…
24 unit building under contract, needs about $1.8M of equity. I've talked to four capital providers now. Two want three comparable completed deals with audited statements. One off…
Structuring JV equity into a $12.4M senior loan with $5.2M of equity behind it. My side is $4.6M, the operator puts in $600k and signs the recourse carve-out guaranty plus a compl…
I run the service side and have never owned anything. An extended family group (four households, roughly 900k they've been sitting on since a land sale) asked me to find something…
I've got two questions nobody will give me a straight answer on. First, if I'm actually negotiating the document rather than signing a form, what am I paying a lawyer? I've heard…
I've got eleven doors and a line of credit I'm not using, and a guy I've watched work for three years wants a capital partner. He's competent. Cheap crews, honest about mistakes,…
Two operators approached me in the same month and I can't have both, so I've been sitting with what actually separates them. Operator A wants to put in 15% of the equity out of hi…
Third JV I've read the documents for this year and the capital call section is where the two philosophies actually show up. Camp one says the non funding partner gets diluted hard…
I'd been doing service work around real estate for a while and figured I understood the business well enough to fund someone else doing it. I did not understand the paperwork part…
I've done nine passive LP checks over six years and never once negotiated a term. This one is different because the operator came to me directly and there's no PPM, just a draft o…
I've been reading two JV term sheets a friend forwarded me with the names taken out, and they split the same way on paper but they get there differently. The first one gives the c…
First time I've been asked to write JV equity and the argument is stuck on one line. The operator wants a 1.5% asset management fee on invested equity, paid monthly out of operati…
An operator I've been talking to sent over a two page term sheet for a 48 unit deal. Top line says "JV equity partnership." Then the terms are 90/10 contributions, 8% preferred re…
I've owned raw ground and a couple of long-hold rentals for years, so this is new territory for me. An operator I've known through a local owners' group asked me to fund the equit…
Bridge loan quote on a 22 unit, $3.1m loan against a $4.2m purchase. Lender's term sheet asks for a guarantor with net worth at or above the loan amount and liquidity at 5 percent…