If you are a developer (or wanna be developer) who is sitting on land in the Caribbean, and not sure how you are going to finance your project, a joint venture may be the answer. A joint venture is a partnership which can bring in funds and expertise into the project in order to get it off the ground.
Financing commercial projects in the Caribbean region can be challenging. Banks often see these properties as speculative, and are leery of taking on too much risk. This means the client must have significantly more input into the deal other than just the land. For many smaller developers, the land is all they bring to the deal.
Bringing in a partner can bring that cash injection into the deal to either complete or at least satisfy lenders that you now have the equity in the deal to make it work. Obviously your ownership in the project will be diluted through bringing in partners, however for most small developers its the difference between completing your project or sitting on a plot of vacant land.
If you choose your partner carefully, they can also bring the expertise needed to make your project a success. We can often bring financing along with a joint venture partner who will add real value to your project. An experience developer who has the know how to successfully build a project in the Caribbean (which is not the same as building elsewhere), is not only beneficial, but imperative to ensure success.
Equity, experience, connections, marketing platforms and access to financing are all key reasons to bring in a joint venture partner. For many of our clients, the bulk of their savings is tied up in their Caribbean property. But without the ability to take your project to the next step, or to get it to the next step in a timely manner is the difference between success and failure.
A joint venture is a partnership that needs to work for all the parties involved, and it is a negotiation. It will depend on how much you are bringing to the table versus how much the partner is bringing in. But in theory, the partner we bring to you would not only bring capital, but allow us to finance your project easier through their experience and reputation.
If you are worried not only about dilution but also your vision of the property, not to worry. Again this is part of the negotiation between you and the new developer. They are not there to completely take over your project, they are simply their to partner with you to make your Caribbean project a success for both you and themselves.
Talk to us today about our joint venture options in the Caribbean; we can assist you in getting your project off the ground!