In a joint venture, both parties are equally invested in the project in terms of money, time, and effort to build on the original concept. While joint ventures are generally small projects, major corporations also use this method in order to diversify. A joint venture can ensure the success of smaller projects for those that are just starting in the business world or for established corporations. Since the cost of starting new projects is generally high, a joint venture allows both parties to share the burden of the project, as well as the resulting profits.
In short, PARS Capital makes sure both parties are committed to focusing on the future of the partnership and project rather than just the immediate returns. Ultimately, short term and long term successes are both important. We believe, in order to achieve this success, honesty, integrity, and communication within the joint venture is necessary.
An equity partnership allows the investor’s capital to buy an ownership stake in a real property investment. As a partial owner, the equity investor shares in the passive monthly cash-flow of owning investment real estate without the day-to-day management obligations. An agreement between parties is drafted where one buyer inhabits the property and the Equity investor has an ownership stake as an investment. The partners split the capital gain after the property is sold based on what is set out in the agreement.