b'The problem with joint ventures is that they arent scale-able, as more than 5 members in a member-managed entity is usually dysfunctional. Its too hard to get the members to agree or even show up for meetings that they are required to participate in. Joint ventures are good for small groups of 1-5 people, where everyone is contributing time, effort and moneyan no one member is taking on a management role. Thisisnotthestructuretouseforagroupthatwishestodelegate management to one or more members; for that, you would use a manager-managed limited liability company or a limited partnership (more on that below).A joint venture is not a structure where one or more of the members will managetheinvestmentonbehalfofthegroupandbeseparately compensated for it (with fees and a share of profits for their sweat equity), as that structure would cause the joint venture to look much more like a syndicate with passive investors, and would subject it to compliance with securities laws. Cashdistributionsinajointventuregenerallyfollowpercentage ownership, which is often determined by capital contributions.Joint ventures can be successfully used in the following applications for real estate group investments:To own and acquire smaller properties with up to 5 members, all of whom are actively involved in generating their own profits through the contribution of time, effort and money.162'