Howdy Shoaib,
The GREENTIE web site has a great page titled "Types of Project
Financing" that speaks to equity financing. You should read it
in detail, but here is a brief summary/excerpt.
"Equity Finance"
http://www.greentie.org/finance/pftypes.php
"Equity represents the investment on the behalf of the owners
of the project, and usually comes from individuals...
...
There is an expectation on the part of debt providers that all
projects will be at least part-financed through equity.
...
However, lenders demand that borrowers take an equity stake in
their own right (to build their commitment to their stakeholding).
In practice lenders normally look for a minimum of around 20% of
the project cost to come in the form of borrower equity."
So, in other words, equity financing is money that comes from a
source that expects the borrower to already have some ownership
(equity) in the project, and in turn the lending source takes an
equity (percentage ownership) position in the project, or makes
some other arrangement for profit sharing, in return for their
financing.
The Answers.com presents the Investopedia.com definition of a joint
venture in straight forward language.
"Joint Venture"
http://www.answers.com/joint+venture&r=67
"The cooperation of two or more individuals or businesses--each
agreeing to share profit, loss and control--in a specific enterprise."
If you need any clarification, please feel free to ask.
Search strategy:
Google search on: "joint venture" definition
://www.google.com/search?q=%22joint+venture%22+definition
Google search on: "equity finance" definition
://www.google.com/search?q=%22equity+finance%22+definition
Looking Forward, denco-ga - Google Answers Researcher |
Request for Answer Clarification by
shoaib-ga
on
08 Sep 2005 03:16 PDT
Denco researcher thanks for your help above and please note the
following is the definition of joint venture finance : "A joint
venture (often abbreviated JV) is a strategic alliance between two or
more parties to undertake economic activity together. The parties
agree to create a new entity together by both contributing equity, and
they then share in the profits, losses, and control of the enterprise.
The venture can be for one specific project only, or a continuing
business relationship such as the Sony Ericsson joint venture" so
therefore I want to know that 'joint venture partners' can provide
"non-institutional non-conforming" finance for real estate projects
for commercial investment ??
|
Request for Answer Clarification by
shoaib-ga
on
08 Sep 2005 03:20 PDT
Denco researcher I also want to know that 'Equity finance
providers' can also provide "non-institutional non-conforming"
finance for real estate projects for commercial investment ?? Thanks
for that help from Shoaib.
|
Clarification of Answer by
denco-ga
on
08 Sep 2005 10:20 PDT
Howdy Shoaib,
Yes, both equity finance and joint venture based sources of financing can
be, but not always are, and actually rarely are, sources of non-institutional
and/or non-conforming finance for real estate projects.
Generally, sources of equity finance or joint venture finance are part of a
usually formal (institutional and/or conforming) process of track records
and financial records, etc.
Keep in mind that both forms of finance expect/require that the person making
the request of financing and/or partnership has an equity (some amount of
ownership which can be substantial) position in the project, or will be
bringing enough assets to the "table" in order to acquire that position.
Looking Forward, denco-ga - Google Answers Researcher
|
Request for Answer Clarification by
shoaib-ga
on
09 Sep 2005 07:47 PDT
Denco researcher please note that in the below mentioned website the
following definition of joint venture finance is provided:
http://www.answers.com/main/ntquery?method=4&dsid=2222&dekey=Joint+venture&gwp=8&curtab=2222_1&linktext=Joint%20venture
Definition of joint venture finance: "A joint
venture (often abbreviated JV) is a strategic alliance between two or
more parties to undertake economic activity together. The parties
agree to create a new entity together by both contributing equity, and
they then share in the profits, losses, and control of the enterprise.
The venture can be for one specific project only, or a continuing
business relationship such as the Sony Ericsson joint venture".
Denco researcher please note that strategic alliance means "Alliance
formed to serve the ends of the plan of actions" and because joint
venture is a strategic alliance between two or more partners willing
to undertake finance for a specific project and sharing risks and
costs for that specific project so therefore it means that joint
venture partners can provide finance for "all of the costs"
associated with that project and therefore it means that there is no
need for borrower to provide some Equity finance in that project.
Note; Denco researcher please note that in the above mentioned website
address it is not written anywhere that the joint venture partners
does not have the capability to provide finance for all of the costs
associated with that project and therefore the borrower should provide
some equity in the project to share some of the costs of that project.
Denco researcher provide clarification of my above mentioned statement
and thanks for that help from Shoaib.
|
Request for Answer Clarification by
shoaib-ga
on
09 Sep 2005 08:02 PDT
Denco researcher you have provided above the following statement
about Equity finance from Equity funding source :
So, in other words, equity financing is money that comes from a
source that expects the borrower to already have some ownership
(equity) in the project, and in turn the lending source takes an
equity (percentage ownership) position in the project, or makes
some other arrangement for profit sharing, in return for their
financing.
Denco researcher I agree that Equity funding source does requires that
borrower should also have some Equity in the costs associated with
that project and therefore Equity funding source cannot provide
Equity finance for all of the costs associated with that project.
Denco researcher please provide response to that of my statement and
thanks for that help from Shoaib. Denco researcher if required I shall
give you extra money in the form of tip and it is my promise with you.
|
Clarification of Answer by
denco-ga
on
09 Sep 2005 14:31 PDT
Howdy Shoaib,
Yes, it is possible for there to be a joint venture where one partner
provides for all of the costs of the project, such as in situation
where the other partner brings the management skills, the product or
the opportunity to the venture, but has no other equity in the venture.
This, although not all that usual, is known to happen.
As for your statement about equity financing.
"Equity funding source does requires that borrower should also have
some equity in the costs associated with that project and therefore
equity funding source cannot provide equity finance for all of the
costs associated with that project."
I agree with that statement of yours, but would also add that in an
equity funding situation that the funding source will not only expect
that the borrower has equity in the costs associated in the project,
but also has equity in the property itself, at least when it comes to
real estate projects.
Looking Forward, denco-ga - Google Answers Researcher
|
Request for Answer Clarification by
shoaib-ga
on
10 Sep 2005 03:50 PDT
Denco researcher so therefore it means that in the website of
http://www.firstbroker.net/ if borrower clicks link of 'real estate'
in bar stating industry type and clicks link of 'special project
funding' in bar stating property or project type and clicks link of
'joint venture' in bar stating loan or investment then the funding
sources including private investors of http://www.firstbroker.net/
can provide finance to pay for all of the costs associated with the
real estate project for commercial investment. Denco researcher please
provide response to that of my my statement and thanks for that help
from Shoaib. Denco researcher my above mentioned statement refers to
my previously posted question ID in which I had asked information
about the funding of http://www.firstbroker.net/ organization.
|
Request for Answer Clarification by
shoaib-ga
on
10 Sep 2005 03:56 PDT
Denco researcher the funding questionaire of
http://www.firstbroker.net/ is available at its below mentioned
website address : http://www.firstbroker.net/index.php/module/Site/action/Questionnaire?PHPSESSID=a463ace894f22f7f642a699a8997bee0
for providing response to my above mentioned statement and thanks for
its help from Shoaib.
|
Clarification of Answer by
denco-ga
on
10 Sep 2005 10:37 PDT
Yes, Shoaib, if you select the options of "real estate" for industry type,
"special project funding" for the project type and "joint venture" in the
investment area, it might produce investors that would be willing to pay
all of the costs associated with a real estate project for commercial
investment. This might not be a very likely outcome, and certainly there
is no guaranty it would produce any JV sources that would provide such an
arrangement.
Looking Forward, denco-ga - Google Answers Researcher
|
Request for Answer Clarification by
shoaib-ga
on
11 Sep 2005 04:52 PDT
Denco researcher I have posted another very interesting Question ID:
566718 in which I need information about particular commercial
website and I hope you will be able to provide its answer with
interest and many thanks for that help from Shoaib.
|
Clarification of Answer by
denco-ga
on
11 Sep 2005 11:02 PDT
Howdy Shoaib,
The comment that has been placed in Question 566718 appears to answer
that question. Please tell me if you want me to add anything to that
comment.
http://answers.google.com/answers/threadview?id=566718
Looking Forward, denco-ga - Google Answers Researcher
|
Request for Answer Clarification by
shoaib-ga
on
20 Dec 2005 04:03 PST
Denco researcher please note that I need a little more clarification
about Joint venture finance and I shall post another question of US$
2 for answer of below mentioned question in this website. I want
to know that specialized strategic joint ventures to pay for all of
the project costs without personal guarantees comes only in the form
of Equity finance OR specialized strategic joint ventures to pay for
all of the project costs without personal guarantees also comes in
the form of collateral based finance OR specialized strategic joint
ventures to pay for all of the project costs also comes in the form
of Debt finance OR in other words specialized strategic joint ventures
to pay for all of the project costs comes in 'all of those three
mentioned forms' ?? So therefore I want to know that you shall be
able to provide the answer of above mentioned question so that I
should that question in this website ?? Denco researcher thanks for
that help from Shoaib.
|
Clarification of Answer by
denco-ga
on
20 Dec 2005 12:33 PST
Howdy Shoaib,
Specialized strategic joint ventures come in all three forms that you state.
Looking Forward, denco-ga - Google Answers Researcher
|
Request for Answer Clarification by
shoaib-ga
on
22 Dec 2005 11:51 PST
Denco researcher please note that I have placed another simple and
interesting question in the new Question ID: 608960 for its answer
and I am sure you can easily its answer. Denco researcher great
thanks if you provide that help for me and regards from Shoaib.
|
Clarification of Answer by
denco-ga
on
22 Dec 2005 13:22 PST
Howdy Shoaib,
I have answered your Question 608960.
http://answers.google.com/answers/threadview?id=608960
Looking Forward, denco-ga - Google Answers Researcher
|
