When two or more parties combine capital investments with expertise or other relevant resources, it is a joint venture.
Investment joint ventures are a means of sharing risk and increasing an individual's capacity to invest effectively.
This is easy to illustrate with land/real estate joint ventures. A single investor may not be able to buy larger tracts of land where there are greater opportunities for growth. A team of joint venture investors, however, is able to look at more properties and take advantage of economies of scale. In a joint venture, investors can hire skilled advisors and property managers to identify the smartest real estate joint venture projects and increase those properties' values. With experts on the team, the real estate investment is less likely to falter owing to unfavourable externalities (such as zoning challenges and unforeseen local economic shifts).
Now is a time when interest in real estate is building. Some properties are undervalued because of the worldwide economy of the past several years, suggesting significant opportunities in the near term. While volatility defines other investments, land that is situated in key locations with stable and growing local economies can provide solid mid- and long-term returns to investors. But it is not a game for followers. Success in real estate goes to those investors – including those in joint ventures – who have access to the best information and can act on opportunities when they arise.
Joining the Lucent Strategic Land Fund allows investors to be part of a major buyer of land for development that uses its highly experienced in-house team to make the right choices and the best returns.