In a joint venture, two parties create a shared business entity. They share the risks, profits, and decision making.
They seem ideal, because by joining with another company, you might gain access to a new market or skill set, combine assets, and minimize individual risks.
And often, the two companies joining together are complementary. This is frequently the case with real estate joint ventures. A common example is when a brokerage forms a joint venture with a title company.
However, there can be significant downsides to joint ventures, and you should be aware they’re not as ideal as they seem.
If you’re a brokerage looking to benefit from working with a title company, you do have other options. With New Door Property Transfer, you become the owner of your own title company. You also avoid these common problems brokers face with traditional joint ventures: