Tips for Finding the Right Real Estate Partners
A real estate partnership can be a great way for any investor to reach their investment goals and to make a great deal of money on their investments. However, while real estate partnerships can be a great benefit—and bring you experience, time, money and skills to your upcoming deal, the wrong real estate partner can be a complete disaster.
The wrong partner can be more detrimental than having no partner at all, so here are some tips on how to avoid toxic real estate partners and make sure you aren’t joining forces with the wrong real estate partner. Here are a few tips to keep in mind as you start looking for the right real estate partner.
- Don’t Only Consider Money- There are many people who think that money is the only criteria for a real estate partnership. While money is important—there are much more important criteria in a great real estate partner. Skills, experience and knowledge are essential for a great partnership. After all, even if you have all of the money you need, if you are both inexperienced—it can be a total disaster.
- Be Careful When Partnering With Friends and Family- There are lots of people who decide to partner with friends and family because they feel comfortable partnering with someone who they have a good personal relationship with. However, a strong personal relationship does not necessarily equate a good professional relationship—particularly if those friends and family don’t have any business experience.
- ..But Also Be Careful With Strangers- Thanks to crowdfunding sites and platforms, more people than other are partnering with complete strangers when entering into new investment opportunities. These crowdfunding companies can vet potential partners to add an extra layer of safety, and you don’t have to worry about your personal relationships getting in the way of your professional endeavors. However, if you don’t know about the other person’s strengths ad weaknesses—you can still be setting yourself up for failure. Take caution when jumping into a relationship with a complete stranger as well.
- Look Into A Partner’s History- Make sure to look into your potential partner’s history and look for red flags, credit issues and other risks. Past performance is a great indicator of future endeavors so you should always be on the lookout for a potential partner that has strong business practices and a solid financial background.
Remember, when buying an investment property, you should always do your due diligence. You need to take the same caution when vetting and choosing a real estate partner that you would when vetting and choosing a real estate property. Do your research, as a poor or mismatched partnership can lead to arguments, legal issues and more.