JOINT VENTURE PROGRAM
Would you like to work with CE Properties on future Real Estate projects?
Are you looking for an amazing opportunity to create some extra income in your portfolio? Do you have extra cash sitting around not sure what to invest in? Are you hoping to find something lucrative but can’t seem to locate any in your area? Perhaps, you prefer a solid investment that will grow overtime so you can start building your safety nest now?
Well, look no further, CE Properties can be your answer! If you are an investor who would like to work with like-minded professionals and don’t know where to start … you might want to consider doing a “Joint Venture” project with CE Properties! How does this “JV” program work? Let’s take a few minutes to show you quite a few advantages of Joint Venturing and see if this is something you want to consider!
To begin, a Joint Venture (JV) is a strategic alliance or a business entity joined or created by two or more parties, that agree to contribute goods, services and/or capital to a common commercial enterprise or project. It is generally characterized by a shared ownership with shared risks, shared governance, and most importantly, shared returns and profits!
For novice and rookie investors, you may feel more secure if you work with a real-world experienced real estate investor who can guide and coach you through the many steps required in a real estate project – be it a conversion or a purchase of a multi-million dollar commercial building; it is important to be diligent and know what you are doing!
By teaming up with other people or businesses in a Joint Venture arrangement, you can:
- Extend your marketing reach
- Access needed information, resources, and skill sets
- Build credibility with a particular target market
- Access new markets that would be inaccessible without the partner
- Access technical expertise and know-how that your company may be lacking
- Access intellectual property that would otherwise be out of your reach
- Access new revenue streams
- Share risks and expenses
For instance, suppose you and five other artists form a JV to hold an Artists’ Show or an Arts Exhibit. Because you pool your resources together, you’re able to do much more advertising and promotion than you would otherwise be able to if you went alone, bringing out even greater crowds of customers for your joint event. Thus, partnering with others would help yield even better results or sales of your artwork.
However, the term “Joint Venture” and “Partnership” are often misused and misinterpreted in the everyday language and can get quite confusing sometimes to the newly real estate investors. In a way, literally and physically, both are at some level working with a partner. But legally, JVs and Partnerships are not the same thing at all! In a strategic JV alliance, there is no exchange of ownership between the companies involved.
The main difference between a Joint Venture and a Partnership is that the members of a JV have teamed together for a particular purpose or project, while the members of a partnership have joined together to run “a business in common”.
Each member of the Joint Venture retains ownership of his or her property. And each member of the JV shares only the expenses of the particular project or venture.
Tax-wise in Canada, there are also differences between Joint Ventures and Partnerships. As a member of a JV, you will receive a share of the profits which will be taxed according to whatever business structure you have set up. So, for instance, if you operate a sole proprietorship, your JV profits will be taxed just as any other business income would.
Joint Ventures enjoy tax advantages over Partnerships, too. Capital Cost Allowance (CCA) is treated differently. While those in Partnerships have to claim CCA according to Partnership rules, those in JVs can choose to use as much or little of their CCA claim as they like! And JVs don’t have to file information returns, unlike Partnerships.
The most prominent disadvantage of a Joint Venture type of partnership would be to share the JV’s profits and returns! But that shouldn’t matter since it is fair to say, great minds yield great results!
Considering all the pros and cons, it is ultimately your decision whether a Joint Venture program fits your needs. If you are truly interested in this type of arrangement and want to start venturing with our seasoned investors, like CE Properties, do not hesitate to contact us so we can walk you through the process in much greater detail and get you started on the path to financial freedom sooner!