Going into business on your own can be rewarding in many ways, but there are also benefits to finding good partnerships to enhance your real estate portfolio and open doors to new opportunities. Of course, a partnership is a big decision and it’s not something to take lightly.
If creating a real estate partnership is the right choice for you, here are a few tips to help the process move along smoothly.
Set Common Goals
If you’re going into business with someone who has different objectives or expectations than you, it can create problems within the relationship that could likely lead to financial headaches. Sometimes you’ll find people who think they’ll be wealthy overnight by investing in real estate. These kind of unrealistic expectations should be addressed prior to the development of any partnership.
Honesty is The Best Policy
You should be honest with yourself and your partner about what you bring to the table. It goes without saying that you’d expect that kind of honesty in return. You ultimately want to find partners who can do something you can’t, and vice versa. Everyone has different experiences and skills that shape how they do business. It’s okay for a partner to just be a second set of eyes, but the ideal partner will be more than that.
Deliver More Than Expected
There’s nothing worse than relying on a person to do something to only be disappointed. You and your partner should only promise to do what you know you’ll be able to accomplish. If more is done, that’s fantastic. But it’s better to under-promise and over-deliver than to fail to meet previously outlined expectations.
Assuming you have a good partnership that makes sense for your business goals, you could reap substantial benefits. You’ll be able to afford a larger investment property with your pooled funds while also diversifying your portfolio. A partner can also offer a second opinion on business decisions that help you see things from a different perspective. It’s also beneficial that you’d be dividing tasks and accountability while extending your network.
On the other hand, partnerships can be risky and you’ll always run the risk of being cheated or being held liable for unexpected situations. To be safe, sign a contract in advance and clearly lay out responsibilities.