What is a joint venture and why consider it?

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A real estate joint venture is a deal between multiple parties to work together and combine resources to develop a real estate project. A lot of large projects are usually financed and developed as a result of real estate joint ventures.

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Why would you even bother to think about joint venture? There are several reasons that would drive you think of looking for a joint venture Kenya opportunity. In this article, I want to look at ten possible reasons why you should think of joint venture for your next real estate project.

  1. Share Investment

Joint venture enables you to share an investment which with your current financial strength would not have been possible. By just welcoming a joint venture partner, you could find yourself sharing a massive investment capable of unlocking multiple financial gains and for long term basis.

  1. Shared Expenses

Joint venture enables you to share construction expenses thus spreading the burden. Depending on the way the joint venture is structured, the load of expenses when shared will be lighter and far much manageable.

  1. Technical Expertise & Know How

Through a joint venture, you are able to bring or connect with technically gifted and experience people who are able to help you grow your knowledge. Not just real estate joint venture but even in other forms of joint ventures where companies or individuals team up for a specific venture. Certain times, certain people are included in the deal because of their technical expertise in the subject matter.

  1. New Market Penetration

This is another reason why you should think of joint venture. Whether you are dealing in tangible products or offering a certain service, joint venture could be an easy route to entering a market or penetrating a market. Joint venture, you can obtain an entry into a market or obtain an already existing market share and better it.

  1. New Revenue Streams

As a result of joint venture, a new revenue stream is opened. Joint venture financing will enable you to get financing without

  1. Enhanced credibility

Through a joint venture, you are able to build your credibility in the market as a person or company that can be trusted. Through that, you are able to win more benefits which will result into mutual benefits.

  1. Away to navigate past barriers to competition

One of the ways to go around a competitor and obtain a competitive hedge is a joint venture. Through a joint venture, you are able to obtain a larger market share and thus go ahead of a competitor. At the same time, you are able to enter the market which competitor made difficult to enter.

  1. Improved economies of scale

When two or more parties or companies join hand to do a project, their combined effort will yield greater production thus obtaining a higher level of economies of scale. This will translate into better profit margin for the venture.

For example, two companies can enter into a joint venture agreement for product distribution. Through such arrangement, Company A will now distribute its products alongside the products of Company B and vice versa.

  1. Intellectual property gains

A joint venture arrangement gives birth to a new entity and with that an intellectual property is born. This is added value to do a joint venture because of the worth of the intellectual property gained.

  1. Synergy benefits

When two or more people come together, the resulting effect is more than what individual could have been obtained. When you invite a joint venture funding partner, you are likely realizing a greater synergy in your work because of the combined resources and expertise.

There is more to gain in a joint venture arrangement. This does not mean that there are no challenges but certainly, when you take care of the potential areas of challenges, the gains are there for all to see. The challenge is where to get a joint venture Kenya partner?

Clique Joint Ventures (K) Ltd is a professionally managed joint venture deal sourcing company with network far and wide able to bring you a joint venture partner for your next project. With over ten years of experience brought in by top management, Clique Joint Ventures (K) Ltd is the place to visit with your Joint venture needs.

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