JV Partner Drops Out: Capturing 100% of the Equity
Your Joint Venture partner backs out, taking their capital with them. This forces you to source private angel finance or bridging, allowing you to keep 100% of the equity instead of splitting it 50/50.
You found a great deal, but your Joint Venture (JV) partner gets cold feet and withdraws their funding. You are facing the loss of a highly profitable project.
Losing a JV partner is often a blessing in disguise. Equity is the most expensive thing you can give away. By being forced to find alternative funding—such as a bridging loan, mezzanine finance, or a fixed-return angel investor—you transition from giving away 50% of the profits in perpetuity to simply paying a fixed interest rate. Once the property is refinanced, you own 100% of the asset and 100% of the cash flow.
The Mindset Shift
A good deal will always attract money. If one partner drops out, the deal doesn't die. Use the crisis to level up your finance game and keep the equity for yourself.