Have you ever thought of getting an investing partner for the business? If so, have you also thought of the strategies that can somehow make you find the right partner?
In real estate investments, key players have found out that growing a business is made more possible with having a team to handle things with. A few members may be outsourced contractors, while other could be office-based employees. However, is partnering with a real estate investor who is also active in the industry a good plan?
Partnering matters are complicated as there are several multi-leveled questions that have to be addressed. Partners, truthfully, could be one of the biggest assets a business can have, because the person can share the troubles, stakes, and passion with you. Only, there are also cases where investors get fed up with previous partnerships that eventually result in dissolutions.
When is partnership a great idea?
Starting out in the real estate investment business is complex, especially if you lack money and skills. With this scenario, partnership is beneficial. While you may shed out major equity with the partner, the learnings that you can reap out of the relationship is much more than what profit can define.
When is partnership not necessary?
Once the skills are honed and money has piled up a little, the call for a partnership may not be a good idea anymore. Basically, the reasons for partnering up with someone have been resolved, and you can now choose to go through either of these choices:
- Find a partner who can equally help you manage the business.
- Find a subordinate, or a person who can take on what you have learned during the first partnership experience.
If the equal partner is preferred, always be cautious with sharing the responsibility with a person close to you. While this kind of relationship works for many, majority of those who have chosen this path experienced deep hurts and, eventually, awkward get-togethers.