Joint Venture Real Estate
At Clopton Capital, we have long standing relationships with joint venture real estate partners and investors that we can bring to the table for your project or acquisition. Our capital partners are always looking for strong and successful sponsors to partner with that have a track record of bringing value, finding good deals, and executing business plans with minimal debt. If you are looking to scale upward and are moving past friends and family type partnership opportunities, some of our joint venture funds may be a fit. We are looking for opportunities where we can see a repeatable business plan and will offer future business and availability.
Joint ventures are a transaction, often one that involves the exchange of expertise and capital in order to invest in a sector that you might know better than anyone. Whether it’s a real estate investment with a high opportunity for profit or otherwise, we assess the valuation of any banking partnership with a strategic focus when assigning you a lender. Managing these partnerships isn’t easy– that’s why we bring every insight into the real estate market and do our due diligence when structuring an advisory relationship or partnership. We want to invest, but we want to invest in wealth building opportunities that are low on risks and provide solid ventures with a high yield. Investment opportunities offer the infrastructure for our brokerage to succeed, and help you succeed along the way.
We recognize that securing funding isn’t always easy. That’s why real estate investors can benefit from a fellow buyer with a history of providing capital, someone who has invested in those areas or industries before. You need a dependable advisor on your side.
If you’re looking to access capital markets you haven’t reached before, with a partner who understands the regulation process from a deeply experienced perspective, you’ve come to the right place. Our objective is to bring you to the institution that will help you, whether you’re an entrepreneur with a revolutionary investment strategy or an experienced trading expert looking for an equity investment.
So with that in mind, let’s take a look at how our partnerships can be structured and what we look for when actively determining the allocation of investments
What we are looking for in a joint venture real estate deal
When evaluating if a sponsor and project are right for some of our joint venture partners, we typically start with and are looking within the following fundamental guidelines
- Strong sponsors with a successful track record – We are looking for sponsors that have executed their business plan before and have been successful at it, rather than emerging investors with little experience.
- All real estate asset classes – We will consider any type of real estate, so long as the returns and operational plan make sense and we feel like we can advise in a secure role as your advisor.
- Nationwide geography, including primary, secondary, and tertiary markets
- Project sizes with a total capitalization of at least $10 million, preferably larger
- Up to 90 – 10 equity contribution rate from the joint venture real estate partner – We like to to see at least a measurable amount of sponsorship level cash in any deal
- Value – add, development, and long term hold – We will look at any scenario so long as the returns are appropriate
Who we typically work with on joint venture real estate arrangements
We typically work with small to middle market owners, operators, and developers of commercial real estate that are looking for joint venture real estate private equity partners to come into deals and help them achieve a larger scale of operation beyond becoming just a borrower. We are looking to arrange joint venture partners for a scenario where there is vast operating experience on the sponsorship side that we can lien on to execute the business plan and achieve the returns and appreciation that are presented to us.
We also offer experience of our own, including restructuring a real estate investor partnership, as well as access to equity firms, negotiation skills, equity funds and real estate funds for your benefit. More than anything, we look for sustainability in. our partnerships. We want partners who specialize in continued, repeated success. Partners who can analyze the market in both broad and specific terms, and bring genuine value added to the partnership. We also look for an even disposition to ensure that the partnership is not volatile. If you under promise and outperform expectations, you would make a great partnership to maximize our shared success. That’s the outlook we hold, and we expect any equity investor we take on to do the same.