In today’s challenging economy, joint ventures (meaning any kind of business with two or more principals) are being put to the test more than ever. Here’s a recent success story that may give you hope and a few ideas for you or somebody you know who may be dealing with a JV problem.
Problem: My client was in a real estate joint venture formed as an LLC with several other members. The LLC was managed by one of the members. A difference of opinion emerged among the members and the manager with regard to certain issues that required unanimous member approval. If the group could not resolve their differences, the JV faced certain failure.
A key to resolving that disagreement required all members to agree upon the terms of a loan to be made by one of the member’s relatives and upon material changes in how the real estate asset would be managed.
Solution: I met with the client, reviewed all the key documents (including the LLC Operating Agreement and the proposed loan terms), identified the anticipated “sticking points” and deal-breakers, and assisted the client in developing a strategy for how to handle the sensitive negotiation on his own, without lawyers, to accomplish the client’s objectives while keeping the JV together.
Result: Thanks in large part to the skilled handling of the negotiation by the client, the differences got resolved, the loan agreement got signed, the deal stayed together and the joint venture is moving forward.
What the Client Had To Say: “I hired Jeff to help review and modify a loan agreement for a real estate investment my family made… Jeff did a great job in >>>CLICK HERE TO READ THE REST OF THIS TESTIMONIAL AT THE TOP OF OUR TESTIMONIAL PAGE.
If you, or someone you know, is struggling with a business partner, of if you are putting a joint venture together and want to do everything you can to minimize disputes like this, we can help. Contact me at [email protected]