Howdy shoaib!
Let's begin by getting definitions for some of the investment terms
in the sentence.
The My Corporation web site has "Joint Venture" information.
http://www.mycorporation.com/llcJointventur.htm
"In General: A Joint Venture is a General Partnership typically formed
to undertake a particular business transaction or project rather than
one intended to continue indefinitely. Most often, joint ventures are
used in real estate matters where 2 or more persons undertake to
develop
a specific piece of real property."
Investor Learning Centre of Canada's website answers "What is a
private
placement?"
http://www.investorlearning.ca/question/en-ca/FAQQ200152en-ca.html
"A private placement is a sale of securities by investment bankers
or investment dealers to a small group of sophisticated investors,
such as pension funds, life insurance companies, trust companies
and venture capital companies at a negotiated price."
The Minnesota Investment Network website tells us "What is Equity
Investment?"
http://www.mincorp.org/equityfund.html
"Equity investment is cash put into a company in return for a
percentage of ownership."
The financial services organisation AMP website explains "What is
commercial property?"
http://brandcentral.amp.com.au/au/connections.nsf/content/O90.2+A+matter+of+factories
"Commercial property is basically shopping centres, offices [and]
industrial premises ..."
To put it all together, the 'meaning' of your sentence, is that there
is a group of people (the venture partners) who are going to make a
private offering (such as shares), that is they will offer some type
of security to a private group of investors (the private placement),
to
raise money (an investment) to be placed into a commercial property,
such as an office building, and the people who are raising the money
(the venture partners) will get a percentage of ownership (equity) in
the project.
Search Strategy:
Google search on phrase: "What is a joint venture"
://www.google.com/search?q=%22What+is+a+joint+venture%22
Google Search on phrase: "What is a private placement"
://www.google.com/search?q=%22What+is+a+private+placement%22
Google Search on phrase: "What is equity investment"
://www.google.com/search?q=%22What+is+equity+investment%22
Google Search on phrase: "What is commercial property"
://www.google.com/search?q=%22What+is+commercial+property%22
If you need any clarification, feel free to ask.
Looking Forward, denco-ga |
Request for Answer Clarification by
shoaib-ga
on
16 May 2003 18:19 PDT
Hello denco-ga and please note that great and excellent answer
has been privided by you but please note that my request is
that can you provide to me the answer of my another posted
question of subject "Real estate loans and joint ventures"
which has a price of US$ 40 mentioned in the list above and
if you can answer that question then please take it and
provide answer to it? Many thanks for your help from shoaib-ga
|
Clarification of Answer by
denco-ga
on
17 May 2003 15:57 PDT
Howdy shoaib!
I have looked at the question mentioned at:
http://answers.google.com/answers/main?cmd=threadview&id=204318
I will indeed do some research on it, but it might be a tough
one to answer. I will probably ask some clarification on it
at the question posting itself.
Looking Forward, denco-ga
|
Request for Answer Clarification by
shoaib-ga
on
18 May 2003 17:11 PDT
Denco-ga please accept great thanks for your clarification answer and
please note that I am looking forward for your help for that mentioned
purpose. Once again thanks for that from shoaib-ga
|
Clarification of Answer by
denco-ga
on
18 May 2003 20:11 PDT
No problem shoaib!
Looking Forward, denco-ga
|
Request for Answer Clarification by
shoaib-ga
on
08 Jun 2003 06:48 PDT
Denco-ga please note that I am satisfied with your execellent
answer but please note that I want to know that in case of equity
investment what is the security for equity investment and those
organizations which provide equity investment can handle any
type of real estate transaction for example real estate
transaction for mortgage loan?
|
Request for Answer Clarification by
shoaib-ga
on
08 Jun 2003 07:20 PDT
Denco-ga please note that my second question is that I want to know
that "private placements and equity investments" are the 'forms'
of joint ventures?
|
Request for Answer Clarification by
shoaib-ga
on
08 Jun 2003 07:37 PDT
Denco-ga please note that I also want to know that the investment
banks which provide 'private placements or equity investments'
for real estate can also handle any type of real estate loan
for example mortgage loan?
|
Clarification of Answer by
denco-ga
on
08 Jun 2003 16:33 PDT
Howdy shoaib!
Are these new clarification requests in regards to the question at:
http://answers.google.com/answers/main?cmd=threadview&id=204318
or to the question posted here?
If the former, then it would probably be best if you reposted the
above question, with any modifications that you might need.
If the latter, then your requests for clarification appear to be
beyond (or at least, certainly an addition to) the scope of the
original question above, and those questions would probably be
best placed in the form of a new question.
Looking Forward, denco-ga
|
Request for Answer Clarification by
shoaib-ga
on
12 Jun 2003 08:15 PDT
Denco-ga I have read the comment posted by you but please note that
if you provide the answers to above mentioned 3 posted questions
I will give the additional tip of 3 US$ to you for each of the above
questions. I hope it would solve the above mentioned query. Note;
I want to give additional tip to you because the above
mentioned pricing of US$ 2 of this posted question now cannot
be increased by me.
|
Clarification of Answer by
denco-ga
on
12 Jun 2003 15:36 PDT
Howdy shoaib!
"... my second question is that I want to know that 'private
placements and equity investments' are the 'forms' of joint
ventures?"
There are also "contractual" or "consortium" joint ventures
in addition to "private placement" and "equity investments"
joint ventures.
Search Strategy:
Google search on the phrase: "forms of joint ventures"
://www.google.com/search?q=%22forms+of+joint+ventures%22
Looking Forward, denco-ga
|
Clarification of Answer by
denco-ga
on
12 Jun 2003 15:53 PDT
Howdy shoaib!
"... I also want to know that the investment banks which
provide 'private placements or equity investments' for
real estate can also handle any type of real estate loan
for example mortgage loan?"
Yes, it appears there are investment banks that do provide
private placements, equity investments in addition to doing
real estate loans"
According to the website of the law firm of Sidley Austin
Brown & Wood, they have handled such deals.
http://www.sidley.com/practice/group.asp?groupid=1475
"Our clients are representative of all industry participants,
including investment banks ... who originate commercial mortgage
loans ... and preferred equity investments."
I would think that investment banks would not be involved in a
mortgage loan for an individual home, but rather commercial
mortgages, or as in the case of the above law firm: "also active
in the purchase, sale and financing of commercial mortgage loan
portfolios."
Looking Forward, denco-ga
|
Clarification of Answer by
denco-ga
on
12 Jun 2003 15:56 PDT
The search criteria for that last answer was as follows:
Google search on: "investment bank" "mortgage loan" "equity
investments"
://www.google.com/search?q=%22investment+bank%22+%22mortgage+loan%22+%22equity+investments%22
|
Clarification of Answer by
denco-ga
on
12 Jun 2003 16:24 PDT
Howdy shoaib!
"... I want to know that in case of equity investment
what is the security for equity investment ..."
Traditionally, there is no real (as in tangible assets)
security for an equity investment, as this definition
from the Minnesota Investment Network website shows.
http://www.mincorp.org/equityfund.html
"Equity investment is cash put into a company in return
for a percentage of ownership."
In other words, an equity investment provides the invester
a cut, or percentage of the profits of the business.
The Nolo website shows that as a possible advantage of
getting equity investment.
http://www.nolo.com/lawcenter/ency/article.cfm/objectID/D435AD2C-83A5-4917-B92A310031EFB91B
"If your business loses money or goes broke, you probably
won't have to repay your investors."
So, by strict definition, the equity investment gets just
equity ("percentage of ownership") for the investment, and
nothing else.
Search Strategy:
Google search on: "equity investments" definition
://www.google.com/search?q=%22equity+investments%22+definition
Looking Forward, denco-ga
|
Request for Answer Clarification by
shoaib-ga
on
13 Jun 2003 11:58 PDT
Denco researcher great thanks for your execellent answer but please
note that because the additional tip now cannot be paid by me
so therefore I shall now place another question in the
answers.google.com website in which I shall give thanks to you
for the answer of this posted question and you will have to
provide the answer of that another posted question and in this
alternative way I shall pay US$ 5 to you for the answer of
this posted question. I hope it would solve this query. Thanks
for your help from shoaib. Note; My another question would have
the subject of Denco-ga so that you shall be able to choose my
another posted question.
|
Clarification of Answer by
denco-ga
on
13 Jun 2003 16:28 PDT
Much thanks shoaib!
Looking Forward, denco-ga
|
Request for Answer Clarification by
shoaib-ga
on
08 Jan 2005 07:08 PST
Hello Denco researcher I hope you would be fine. Denco researcher
please take a little of your time for my below mentioned
clarification. I need a little more clarification of your
answer. You had indicated above that joint venture loan is used to
raise capital for real estate project. So therefore I want to know
that joint venture partners can raise joint venture loan for
following property purchasing costs:
"Various fees and expenses payable at the time of a real estate
closing, (also termed transaction costs). Includes brokerage
commissions, lender fees, title insurance, recording fees, prepayment
penalty, inspection and appraisal fees, and attorney fees" and for
any other costs related with the purchase of real estate property for
mortgage loan so as to complete property transaction process ??
Thanks for your help from Shoaib.
|
Clarification of Answer by
denco-ga
on
09 Jan 2005 20:43 PST
Howdy shoaib,
A reminder of the Important Disclaimer: Answers and comments provided on
Google Answers are general information, and are not intended to substitute
for informed professional medical, psychiatric, psychological, tax, legal,
investment, accounting, or other professional advice.
Joint venture partners can pretty much raise money for most any purpose,
including transactions costs. That is not to say that raising such funds
would be easy.
Looking Forward, denco-ga - Google Answers Researcher
|
Request for Answer Clarification by
shoaib-ga
on
10 Jan 2005 05:41 PST
Denco researcher thanks for your clarification above. But
please note that you have indicated above that joint venture
partners can provide for most of the property purchasing costs
but not for all the property purchasing costs so therefore
please take a look at the following website in which information
about joint venture loan or financing is given:
http://www.worldwideloans.com/joint_ventures_financing.htm
In the above mentioned website it is written that,
"In the most general terms, it is "any" financing in which two or more
parties known as coventurers share costs, risks, or liabilities
associated with raising funds for a project.
By participating in a joint venture or joint venture financing,
borrowers can spread risks, minimize credit exposure, and often share
in asset ownership. Joint venture agreements are drafted to cover all
these points",
Denco you will notice it is written in the above mentioned
statement that "joint venture is ANY financing in which two
or more parties known as coventurers share costs, risks, or
liabilities associated with raising funds for a project and joint
venture partners also share in the property ownership" so this
shows that joint venture partners can provide joint venture
loan for below mentioned property purchasing costs by taking
"ownership" in the property:
"Various fees and expenses payable at the time of a real estate
closing, (also termed transaction costs). Includes brokerage
commissions, lender fees, title insurance, recording fees, prepayment
penalty, inspection and appraisal fees, and attorney fees" and any
other costs related with the purchase of real estate property for
mortgage loan ?? So therefore please provide clarification of
my above mentioned statement ?? Thanks for that from Shoaib.
|
Request for Answer Clarification by
shoaib-ga
on
10 Jan 2005 06:06 PST
Denco researcher I have asked above for those joint venture
partners which can provide "SPECIALIZED JOINT VENTURE LOANS
OR FINANCING" for purchase of real estate for mortgage loan
?? If you provide clarification of my above mentioned
statement then please keep this mentioned statement also
in front to provide the answer ?? Thanks for that from
Shoaib.
|
Clarification of Answer by
denco-ga
on
10 Jan 2005 11:54 PST
Howdy shoaib,
Yes, if the joint venture partner was willing to do so, then an equity
position (a percentage "ownership" in the property) could be exchanged
for the closing or transaction costs. Keep in mind that some purchasing
contracts might be written so as to exclude the closing costs from being
paid for with loaned money.
Looking Forward, denco-ga - Google Answers Researcher
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