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A Joint Venture is a profit sharing agreement, they're designed for experienced developers who need to free up capital for other projects. Some JVs do not require any money down at all, with Lenders providing the entireity of purchase, build costs, profeshional fees and so on.
Essentially, a Joint Venture is a profit sharing agreement on property developments. It avoids requiring the developer to put in much personal cash and split the profits of the development in return.
The most common reason to use a JV is lack of available cash, or to free up funds for future projects. However there could be other reasons too. Sometimes the nature of a project may be too unusual to fit on a lender's development finance products they may offer a JV.
A JV split is a lot of cash. It could be up to 50% of profits. Most Developers avoid this route if they have available funds.
There are a handful of JV Lenders, this is a highly specialised area which can be difficult to access.
Unfortunately not, JV lenders will need string credit profiles.
Lenders will need to see 5-10 years of development experience. They will want to see that you have completed a few projects of equivalent size and that the current proposal is standard. Significant increases in project size would likely be rejected.
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Maybe commercial mortgages would be more suited?
You can finance a project utilising an investor with a zero deposit.
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