joint venture real estate agreement
for the purposes of this discussion, we will focus on joint ventures with only two members, the sponsor and investor member, investing in a single asset: as with any real estate investment, you should carefully evaluate the asset itself. in a joint venture, evaluating the sponsor’s capability to execute the business plan is just as important as assessing the underlying real estate investment. the purpose is for the sponsor to be appropriately aligned with the success of the investor member. as a result, an investor member should not commit to reimbursing or compensating the sponsor for these costs until the investor member has reached an agreement with the sponsor to invest in the deal.