Quantifying partnership terms in real estate joint ventures
type: CreativeWork
description: Joint ventures are widely used in real estate investments, and especially so in development projects where partners bring different value to the venture: an Operating Partner who has the desire and operational capabilities to manage the investment but lacks the capital to fund the entire project, and a Money Partner who has the capital, but lacks the expertise and the desire to manage the project. A formal joint venture (partnership) agreement governs the relationship between the Operating Partner and Money Partner in the development project. Real estate investment performance is generally evaluated at the property level (before considering the impact of financing) and then at the venture level (taking into account the impact of financing). Differing real estate investment performance within the venture, due to specific partnership terms, has generally taken a back seat for performance evaluation, and is less of a focus when the investment is performing well.
abstract: Joint ventures are widely used in real estate investments, and especially so in development projects where partners bring different value to the venture: an Operating Partner who has the desire and operational capabilities to manage the investment but lacks the capital to fund the entire project, and a Money Partner who has the capital, but lacks the expertise and the desire to manage the project. A formal joint venture (partnership) agreement governs the relationship between the Operating Partner and Money Partner in the development project. Real estate investment performance is generally evaluated at the property level (before considering the impact of financing) and then at the venture level (taking into account the impact of financing). Differing real estate investment performance within the venture, due to specific partnership terms, has generally taken a back seat for performance evaluation, and is less of a focus when the investment is performing well.
author: Ong, Wee Kian Alvin.
language: eng
keywords: Center for Real Estate. Program in Real Estate Development.
license: http://dspace.mit.edu/handle/1721.1/7582
date published: 2019
date modified: 2026-07-22T22:21:24Z
provider: MIT
publisher: Networked Digital Library of Theses and Dissertations
type: WebPage
source organization: Massachusetts Institute of Technology

PropertyValue
property ID: Handle
value: https://hdl.handle.net/1721.1/123608