Thinking About a JV?
Here Are 5 Questions to Ask First
You may be wondering “How do I do a joint venture?”
Joint ventures can be an incredible way to expand your capacity, bring in partners with complementary strengths, and go further together than you ever could alone.
But JV partnerships can also go sideways—fast—without the right questions upfront.
Whether you're considering a partnership or just preparing for the future, here are five questions I recommend every investor ask before signing anything:
1. What’s a Fair Split?
Fair doesn’t always mean equal. It depends on who’s bringing what to the table—money, time, deal flow, operations, or credibility. Think in terms of contribution and risk. If one person is taking on more downside, that should show up in the upside, too.
2. What Goes in the Agreement?
At minimum, your JV agreement should outline:
Roles and responsibilities
Capital contributions
Decision-making authority
Dispute resolution
Exit terms
Yes, of course, all the legalese and required recitals should be there. But to make it an actual, articulated agreement, you need companion agreements and documents as addendums or exhibits. These should be referenced within the main agreement with clear clauses on:
How profits are distributed
Who has operational authority (and on what)
Rights to refinance, sell, or borrow against the asset
Protocols for handling disputes and defaults
What happens if one party wants out or stops performing
3. Operating Agreement vs JV: What’s the Difference?
An Operating Agreement (OA) usually governs an ongoing business entity like an LLC. A Joint Venture is often used for one specific project or deal. Not every deal needs a new LLC. But if you’re planning to JV, be clear on what structure protects you and your partner. Consider crawl-walk-run. I have a whole article about this concept [here].
4. Are We Aligned on Exit Strategy?
Not everyone wants to hold forever. Make sure your timelines, goals, and exit preferences are discussed upfront. Misaligned exits are one of the top causes of partner disputes—and they’re entirely preventable.
5. Do We Trust Each Other With Bad News?
It’s easy to partner when everything’s rosy. But how do they handle missed payments, tough calls, or a contractor walking off the job? If you can’t have hard conversations before you partner, it won’t magically get easier after.
If these questions stirred anything up—or you're currently considering a partnership and want to avoid expensive mistakes—download the Informed Partner AI Guide.
This tool includes worksheets, prompts, red flag checklists, and upon the completion of the guide you will have completed 5 critical drafts of agreement documents you can take straight to legal review. Built for investors who want to lead with clarity—to help you structure smarter deals from the start.
👉 [Grab the Informed Partner AI Guide here]
Let’s stop normalizing vague agreements and start building ventures that actually work—for everyone involved.
