Joint Venture Financing Mortgage Lending Program

Joint Venture Loans

Joint venture loans are a great way to fund your next fix and flip project.

What is a joint venture?

Joint ventures are a commercial enterprise undertaken by two or more parties that otherwise retain their distinct identities. In other words, two or more parties pool their resources in order to accomplish a goal.

This is different from a partnership in that it has a defined end point.

Each party is responsible for their own debt. In the end, profits are divided between the parties based on the original agreement.

There are generally two types of joint ventures:


  • Unincorporated – Agreement includes all terms
  • Incorporated – Separate company is incorporated and both parties become company shareholders
joint venture mortgage lending agreement

Who are joint venture loans best suited for?

Joint venture funding is great for fix and flippers who have had trouble securing funding through other methods. If you’re struggling to obtain funding in your name, this is a good option for you.

These are best for fix and flip investors who are:


  • Having trouble getting funding in their name
  • Don’t have quite enough capital to get started
  • Need more resources and don’t have the means on their own

Pros and Cons of Joint Ventures

When securing joint venture funding, keep in mind the following advantages and disadvantages.


  • 1. New Perspective – The others involved in your joint venture can offer you new insight and expertise, which may help you make better decisions on your fix and flip project. They’ll also be able to provide more resources at your fingertips.
  • 2. Give You the Ability to Complete Projects That Were Otherwise Impossible – You may not have had the capital or staff to be able to complete your fix and flip project, but with a joint venture, you do!
  • 3. Flexible and Temporary – Unlike partnerships, joint ventures have a definite end. It’s not a long-term commitment, so if it doesn’t work out, it’s not forever.
  • 4. Shared Risk – If your project fails, it’s not all on you. Instead, all parties in a joint venture bear any costs associated with failure together.
  • 5. Build Relationships – A joint venture is a great way to network with like-minded businesses and people.
  • 6. Save Money – By sharing costs, you’re able to save more money than you would have otherwise.


  • 1. Shared Risk – Though this can also be seen as a benefit, if your joint venture partner makes poor decisions, this affects you. You’ll go down with them, so be careful who you choose.
  • 2. Possibility of Conflict – There’s always the possibility that you’ll butt heads with the other parties in a joint venture. This is why it’s important to tread carefully and discuss the agreement in great detail before signing on.
  • 3. Imbalance – In any joint venture, the responsibilities are not really split equally. Skills, expertise, and assets vary and are all unequal, so keep that in mind.
  • 4. Lack of Commitment – Since a joint venture is a short-term agreement, the other party may not be 100% committed. This can negatively affect the project.
rental loans

How to Apply for Joint Venture Loans

If you’re a real estate investor or fix and flipper interested in joint venture funding, call the experts at Gauntlet Funding. We can answer all your questions and help you get the funding that’s right for your project.

To get started, simply call us at 631-465-2161. We’ll answer your questions and address any concerns you may have. If you’d like to expedite the process, simply fill out our easy online application.