Joint Venture Finance
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What is Joint Venture Finance?
Joint Venture Finance (JV) is a method of developing property without using your own money. As the lender provides all of the money needed to complete the project, profits are usually shared on the sale of the site.
The profits usually end up split on a 50/50 basis. Some lenders will charge interest on funds drawn down and split the profit in your favour slightly. Other lenders will charge no interest and simply split 50/50.
Where interest is charged on the debt, you can usually roll this up, meaning there is no need to service the finance. JV finance is designed to cover 100% of all purchase and build costs of the project. With this type of finance the site acquisition and build costs are both covered fully.
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