In addition, although the companies which participate in joint control of actions, work activities and the use of resources are not always equally distributed. In Ukraine, most joint ventures are operated in the form of a limited liability company, as there is no legal entity as a joint venture. The protection Commercial Hard Money Lending NYC of the rights of foreign investors is guaranteed by the Ukrainian law on foreign investment. In Ukraine, the joint venture can be established without the formation of legal entities and act under what is called the cooperation agreement (Dogovir pro spilnu diyalnist; Ukr. Durovichutor про спільну діяльність).
For our purposes, the joint venture refers to commercial real estate and the lender-borrower relationship. Although our clients are not starting to look for partners, they can recognize the value of sharing equity in relation to direct debt financing. As a result, thanks to the funding of joint ventures, our clients can reduce the amount of their personal capital at risk, but always focus on the objective of funding their project. This type of real estate financing is a means of structuring a mortgage and an accredited private capital. This use of money and other people’s balance sheets can help the client use their leverage, minimize their cash contribution, finance their immediate project and also free up their cash reserves for other projects.
According to the civil code of Ukraine, the AC can be established by two or more parties; The rights and obligations of the parties are governed by the agreement. The cooperation agreement has been widely extended in Ukraine, mainly in the area of oil and gas production. Since the independence of Ukraine, corruption does not allow the application of Ukrainian law, investors must protect their rights and property themselves. Basically, a joint venture is where two investors agree to pool their finances, experience and for-profit connections, for example by transforming a house together.
We have an in-depth knowledge of issues related to securities products, the right to transfer securities, compliance and intellectual property of financial processes, among others. Most joint ventures are incorporated, although some, as in the oil and gas industry, are “unincorporated” joint ventures that mimic a business entity. With individuals, when two or more people come together to form a temporary partnership to carry out a particular project, this association can also be described as a joint venture where the parties are “co-entrepreneurs”. This type of funding is extremely attractive to developers who seek to launch their project with little capital available at the time. Joint ventures often give our customers access to funds to buy land and make things happen quickly, and the financial incentive for investors to profit is high.
Distribution of services: One of the most important considerations is how the profits from the joint venture will be distributed to the parties concerned. For example, if one of the parties is much more actively involved in the daily real estate project process, it may be entitled to more of its income. Since the partner JV invests all the money and therefore takes all the financial risks, he will expect to have control of the special-purpose vehicle in which the project will be located. Consequently, they should undoubtedly be the majority shareholder, often the partner and developer of JV are the directors of this company. This generally involves 100% financing from an investor or a partner, for a share of the profit.