Everything in writing
A handshake is not an agreement. Each partner needs their own solicitor, and the terms need to be signed before any money moves.
Investing on your own → Joint venture partnerships
Property Joint Venture Partnerships
Occasional introductions between experienced property investors who want to work together. Each side takes its own legal advice, and we do not arrange, run or hold money for the partnership.
Most of the investors we work with buy on their own. This page explains how property joint ventures work, why they fail, and when we will make an introduction.
- Introductions only
- Independent legal advice on both sides
- No investor money held
- Experienced investors
What a property joint venture is
A property joint venture is two or more investors combining money, experience and time on a particular property or project that none of them would take on alone. A common shape is one partner bringing most of the capital and another finding the property and running the project.
Most are set up through a limited company created for the venture, with a shareholders' agreement, or through a written partnership or co-ownership agreement. The agreement matters more than the property: good partners with a clear agreement tend to do well, and poor agreements sink good deals.
The regulatory line every joint venture must respect
If one partner hands over money and has no real say in the day-to-day running while the other makes all the decisions, the arrangement may be treated as a collective investment scheme, and inviting people into it may be a regulated financial promotion. Genuine joint ventures, where each partner has real control and involvement, are different.
Where the line falls depends on the detail, so take specialist legal advice before any money changes hands. We are not lawyers or financial advisers, and we do not arrange, promote or run joint ventures.
Common structures
| Structure | How it works | Watch out for |
|---|---|---|
| Company for the venture | A limited company owns the property; partners hold shares in agreed proportions under a shareholders' agreement. | Company mortgages, annual accounts, and personal guarantees lenders may still ask for. |
| Partnership or LLP | Partners share profit and loss under a partnership agreement; an LLP limits personal liability. | Liability in an ordinary partnership is unlimited; tax treatment needs specialist advice. |
| Direct co-ownership | The partners own the property jointly in their own names. | Harder to finance and exit; best kept to partners who already trust each other completely. |
What the agreement must cover
Every one of these, in writing, drafted by solicitors acting for each side.
- Contributions Who puts in money, time and expertise, and what happens if one side falls short.
- Decisions Which decisions need both partners and which can be taken alone.
- Profit and loss How income, costs and any sale proceeds are shared, and in what order.
- Further funding What happens when the project needs more money than planned.
- Deadlock and disputes How a 50/50 disagreement is broken, and mediation before court.
- Exit Buyout rights, how the property is valued, and what happens on death, illness or insolvency.
Before you commit
Check your partner
References from previous partners, evidence of completed projects, and how they handled a deal that went wrong.
How we check a deal →
Trust comes first
The partnerships that last are usually between people who knew and trusted each other well before any money was involved.
About Liam Taylor →
Plan for disagreement
Most joint ventures that fail do so because the partners fall out. A clear deadlock and exit clause is cheaper than a court case.
Ask about introductions →If you are bringing the money, or the expertise
Two sides of the same agreement, with different risks.
Bringing the money
You are trusting someone else's judgement and effort with your capital. Check their track record, keep real decision rights in the agreement, and budget for extra funding if the project overruns.
Bringing the expertise
Your time, deal-finding and project management are your contribution. Expect a new partner to want evidence of completed projects, and expect terms to reflect how proven you are.
Why property joint ventures fail
Most failed joint ventures do not fail because of the property. They fail because the partners fall out: different expectations about how involved each should be, different timescales for selling, one side not delivering what was promised, or a 50/50 split with no way to break a deadlock.
The cure is dull but effective: partners who already know and trust each other, a written agreement that covers the awkward scenarios, regular honest communication, and an exit route both sides agreed while they were still getting on.
When we will make an introduction
We make introductions rarely, and only when all four apply.
Both sides experienced
Each investor can show completed property projects and give references we can check.
Independent advice
Each side has its own solicitor and accountant. We never act for both.
Terms agreed in writing
The partners set their own terms, in a written agreement, before any money moves.
No role in the partnership
We do not run the venture, promote it to anyone else, or hold any partner's money.
Ask about a joint venture introduction
Tell us your experience, what you would bring and the kind of project you have in mind. We will be straight about whether an introduction makes sense.
Joint venture questions
What profit split is normal in a property joint venture?
There is no standard split. It depends on what each side brings in money, time, experience and risk, and it is negotiated. Whatever you agree must be written into the agreement, with independent legal advice for each partner.
How do I find a reliable joint venture partner?
Usually through people you already know and trust in a business setting. Ask for verifiable references and evidence of completed projects, meet repeatedly before committing, and never rush because a deal looks too good to miss.
What legal documents does a property JV need?
Usually a company set up for the venture with a shareholders' agreement, or a written partnership or co-ownership agreement. It should cover contributions, decisions, profit and loss, further funding, deadlock, exit and what happens on death or incapacity.
Can I leave a joint venture early?
Only on the terms the agreement allows, such as a buyout at an agreed valuation or a sale. Without clear exit terms, leaving can mean an expensive dispute. Agree the exit before you agree the deal.
Is a property joint venture regulated?
It can be. If one party puts in money and has no day-to-day control while the other runs everything, the arrangement may fall under the rules on collective investment schemes, and promoting it may be a regulated financial promotion. Take specialist legal advice before any money changes hands.