Structuring a Fair JV

Profit splits, loan versus equity and returns that attract partners

When someone puts money into your deal, the terms decide whether you gain a partner who funds you again or lose both the relationship and often the money. This book teaches you to structure a joint venture fairly. It explains the numbers that matter in a JV, where to find free information to set a fair split, and why an undefined promise to split the profit is so damaging. You will see how every cost reduces the pool both parties share, and why both have an interest in laying the whole cost stack out honestly. The structure is stress-tested for a bad month, a void and a rate rise, because fairness is revealed when a deal disappoints. A complete worked example structures one deal two ways, as a loan and as an equity share, and shows what each does to both parties. The final chapter gives you a model for any joint venture and the legal questions it cannot answer. Next in this series: “Staying the Right Side of the FCA”.

What’s inside

• The only numbers that actually matter
• Where to find reliable local data for free
• Working out true income, not optimistic income
• The full cost stack nobody mentions
• Stress-testing for the bad month, the void, the rate rise
• A complete worked example, start to finish
• Your deal calculator, and the legal questions it cannot answer

Educational material only, not financial, legal or tax advice. Results are not typical and are not a guarantee of income. Freedom Property Academy LTD, registered in England and Wales.