The Joint Venture Agreement is crucial to the partnership between the investor and us. It is a legal document that states the terms and conditions governing the joint venture between both parties – developer (us) and investor. 

The Joint Venture Agreement will involve and overall these essential aspects. 

1. Profit-Sharing: This is crucial to any joint venture agreement. The profit-sharing or distribution of profit will cover how the joint venture members will share profit after the project. The profit will not necessarily be equally disturbed. The profit-sharing mechanism depends on what the investor is bringing to the agreement. 
2. Capital Contribution: The agreement will specify what exactly the investor is contributing to the project. The JVA will cover the capital percentage the investor will drop and at what stage. 
3. Management and Control: The JVA will specify in detail the responsibilities of all parties involved in the joint venture regarding the management of the real estate property. 

The JVA will specify the controlling interest of each party in the joint venture. 

4. Exit Mechanism:The JVA will detail how and when the joint venture can end. The exit mechanism will also list the events an investor can trigger the dissolution of the joint venture.

An example of such an event is if the investor decides to sell his share in the joint venture to another party or us. If the investor chooses to sell and transfer his right to another party, the joint venture will state the conditions under which the investor can do that. 

1. Conflicts: The JVA will also address all types of conflict that can arise during development and project completion. The JVA will list all kinds of disputes that can arise and how to handle the different scenarios. 

The agreement will also stipulate the different scenarios that can lead to the joint venture's dissolution in case the conflict can't be resolved. In such instances, the JVA will include the exit plans for both parties.

Benefits of a Joint Venture

When you invest in our joint venture process, you get a passive finance source regardless of the payment plan. Here are the several benefits of a Joint venture project to investors.

1. Passive income source: Our Joint venture projects with their flexible payment option can give investors plenty of returns on their money invested. Investors can also choose their preferred form of profit-sharing or payment option. 
2. Partial liquidity for Landowners: If you are a landowner looking for liquidity without having to lose all rights to your land/real estate property after development, a joint venture is the best way to do that. With our joint venture projects, landowners can get a cash exit (liquidity) on their land without having to sell their land outrightly. They can also maintain a level of control over what happens on the land. 
3. Development Expertise: With our development expertise and experience, investors don't have to worry about the project development, management, and overseeing the project to completion. 
4. Shared Risks: By entering a joint venture agreement with us, investors reduce the risk associated with starting a real estate development project by themselves. By banking on our expertise and technical know-how, investors can offset economic risks, construction risks, and other associated market risks. 
5. Access to Market Distribution Channels: Partnering with a prominent real estate company like us that is already in the market means access to several distribution channels. Channels that ensure the real estate property reaches its suited market faster. 

That means investors can get their profit/payment faster after project completion. 

1. Project Appraisal

The first stage of any joint venture project will start with the appraisal. If a landowner is proposing to contribute a piece of land/real estate, we will organize a site visit to access the property's location, accessibility, and property availability.  

We then conduct a feasibility study to establish the property's best use, the cost of development, the revenues, and the resulting potential returns from such investments. 

Likewise, if you are planning to invest in our ventures, at this stage, you are entitled to site visitations and feasibility study of the project.

2. Project Terms

At this stage, we (the developer) come up with the project terms and agreement. This agreement will include showing the proposed venture, the budget, the revenues, and payment/profit sharing. 

The agreement proposal will stipulate the type of profit-sharing the investor has agreed upon. For land contributors, the payment/profit sharing can be in any of these forms. 

• Upfront payment with the rest within a stipulated period. 
• Upfront payment with a share in the profit from the developed project. 
• Claims in the developed real estate within a specified period. 
• An agreed amount to be given to the investor after a stipulated period. 

If the investor has entered into a Joint venture Partnership, the profit-sharing/payment can be in any of these forms. 

• A share in the developed real estate property
• An agreed payable amount within a stipulated period after the project completion
• A share in the revenue generated from the project after completion. 

3. Legal Process: 

At this stage, the investors can consult with their legal advocates to review the project agreement. When the investor/landowner accepts the agreement's conditions, they are required to hand over the land's title deed and deed plans for verification by our legal representative.

Our legal representative will confirm the authenticity of the title deed, the actual ownership, and that the land is free from any form of conflict. After a thorough search has been carried out on the land and everything is in order. We can then proceed to the next stage.

4. Signing of Agreement

The Joint Ventures Agreement (JVA) will outline:

• All the scenarios that can cause conflicts between the parties and how to handle these scenarios. 
• The capital obligations of both parties
• The partnership management structure
• The right and responsibilities of each party 
• The exit rights and transfer right concerning the sale/transfer of membership rights to the Joint venture 
• The profit-sharing plan
• The downside protection for the land value contributed by landowner/investor.

Once the investor has agreed to the terms and conditions outlined in the agreement, we can both sign the contract. 

5. Transfer of Land 

After the signing of the agreement, the landowner is under the obligation to give us the relevant documents required for the transfer of ownership, after which we can start all the necessary arrangements to start the project. 

6. Project Commencement

The project commences after we have sorted all legal and financial steps needed to make the project run smoothly is completed. 

Our team of highly trained experts – architects, builders, civil engineers, and other professionals will handle the construction process begins work immediately. We will oversee all aspects of the construction process until the real estate property is completed. 

After construction, we will handle all the post-construction activities to get the real estate up to marketable taste.

We also have an in-house management and marketing team that will take care of the real estate unit's selling and renting. 

7. Project Completion 

Once the project is completed, our financial team will take over the handling of all financial activities. And the investors start getting their profit/payment based on the agreement in the Joint Venture agreement.