OUR MAIN POINT OF DIFFERENCE to what WE CAN OFFER a Joint Venture property development relationship, is in respect to having an INDEPENDENT Private Funder. (And importantly), this party is a large land developer himself, and is therefore someone that UNDERSTANDS property development inside and out. He is in the last couple of years of his final significant project which is a multi -awarded land division of over 2000 residential allotments; and with a Commercial precinct where he has major national key Tenants as part of the tenancy spread.
The reason for advising this, is so you have the peace of mind in knowing that the financial intermediary we use is highly KNOWLEDGEABLE/ EXPERIENCED and CREDIBLE; (with over fifty years in land/property development). He is experienced with Green-field projects, as well as Infill projects. THE KEY to the funding of any joint venture projects with OUR BUSINESS, is that the parties are NOT REQUIRED to “cross guarantee” each other, THIS IS A MASSIVE ADVANTAGE.
As you are likely aware with debt funding this is virtually unheard of, as when parties approach a traditional financial intermediary to finance a property development or any commercial venture for that matter, there normally is this requirement.
Commercial reality with “cross guarantees” is that you are jointly and severally responsible for the debt, whether the Joint Venture parties are meeting their own obligations or not.
In other words, if you are in a Joint Venture, and if for what-ever reason your “partner(s)” do not co-contribute per your arrangement with them, the lending institution will REQUIRE YOU TO MAKE THE REPAYMENTS TO THEM IN THEIR ENTIRETY.
Obviously things can happen that are not foreseen, but “cross-guarantees” when you guarantee others are EXTREMELY RISKY and can be very COMMERCIALLY COSTLY.
HAVE ABSOLUTE PEACE OF MIND WITH JVPD.