The real estate is a thriving sector, therefore becoming a successful real estate partner is something worth striving for, and this article will tackle this issue. With great partners, your real estate portfolio will grow massively, but what should you do to become a successful partner?
Finding the right properties in areas that seems promising economically and purchasing them with good partners is a wise idea. With the right partners, there will be enough cash, the risk will be shared, and you will also receive valuable advice. Money is great and advice valuable, but there are other things to put into consideration before going into partnership on a real estate investment. Below are important factors for real estate investment partnership:
- Sharing common ideology
Before going into partnership, ensure that you and your intending partner share common ideology and objectives about real estate investment. You could both agree to buy properties which gives positive cash flow within 12 months of its purchase, and you plan to hold it for a couple of year, maybe 10 to 15 years. This shouldn’t be a big deal for your partner if you share similar objectives, and you should comfortably discuss the partnership.
- Start with Possibilities planned out
It is very vital that you make things clear with your partner like how either one of you can opt out of the deal in future if things gets critical. Let’s say you both share a 50% ownership for a duplex you bought, but later, due to some financial restraints, your partner needs the equity from the property, you can either sell the property, look for another partner to buy out your partner or buy your partner out yourself. There are possible many things to consider, but you should first of all map it out at the beginning through written agreement.
- Be Fair
Be fair in your dealings with partners, because as you become successful and trustworthy in the real estate market, many people with money will want to partner with you, especially friends of recent partners. You shouldn’t just throw in a huge sum of your partner’s money into a deal without making proper research. Only spend your partner’s money the way you would spend yours, and this way, you will become successful in the real estate partnership business. No matter the huge amount of money invested, always consult your partner before making major decisions.
- promise less than you can deliver
In real estate business, it is always good to undersell yourself and surprise your partner by over delivering. This is because it would be disappointing to assure someone that a property will bring in a great amount each month only for the property to rake in less than promised.
- Keep in touch all the time
Some partners wont expects you to give them a weekly progress report or glossy annual report every year, but you should always keep them updated on the property, let them know when a tenant moves out and also notice of cash flow around the property. This, however, could be done informally, either through an email or a phone call when discussing other issues. This will keep their confidence strong and make your partnership work better.
If you follow these tips before entering a real estate partnership, you will be marveled at how your partners will trust you, and more people will be willing to partner with you without you doing much advert. This will give you more time to find better deals and also more money and willing partners around.