Joint venture real estate deal makes sense because:

• You can maximize your investment by working with someone that is experienced in investment real estate.  More experience means less risk and better returns.
• JV deals mean you have less headaches.  If you are the capital partner in a joint venture, your partner is probably going to be in charge of the dirty work involved with finding, negotiating and disposing of investments.
• Working with a partner on a investment real estate property opens you up to new investment opportunities.  As you do more deals, you will get more contacts and be offered more opportunities to invest in more projects.
• Properly executed joint venture investment real estate deals are, at least in my opinion, far safer than investing in stocks, and give better returns.

How is this different from lending money on real estate investments?  As a joint venture partner, you have more to gain.  Instead of just accepting a relatively small amount of interest, you gain a larger share of the profit and can even take advantage of some of the tax rewards associated with owning investment real estate.  Can you say depreciation deduction?

You do want to have JV real estate deals set up correctly, and should be written out and placed in the correct corporate structures.  Doing that will minimize the problems that can occur with partnerships.  In my experience, there are generally few problems as long as everyone’s responsibilities and duties are spelled out in writing in advance.  Communication is essential!

If you are thinking of pulling your money out of the stock market, CDs or money market account and are wondering where to invest it, don’t overlook joint venture investment real estate transactions.  The rewards can be excellent!