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A real estate partnership, like any other business partnership, needs a plan. There are things that you need to avoid and things that you need to do to make sure each party has a successful real estate partnership. You will need to find the right people that will make a great team. So you should interview people extensively before you agree to anything and make sure you obtain a written agreement. These three tips will help you put together a successful real estate partnership: Tip #1: Choose the Right Partner Choosing an unreliable, dishonest, or untrustworthy person is the reason why many partnerships fail. It is important to choose a real estate partner that will complement you in your work. You don't want to choose someone who will leave you with all of the work. You have to find out about your potential partner's character and work ethic before you agree to a partnership venture with him or her. Ask a lot of questions about his or her businesses and finances. Your partner should be someone you respect, admire, work well with, and someone who brings something additional to the table—experience, skills, hard work, integrity, determination, perseverance, and self-discipline. Tip #2: Looking at Successful Partnerships In order to have a successful real estate partnership you must first study those that are already successful. Usually a partnership will have two people, but some have up to six or more people. Each person has separate knowledge and a skill that they specialize in. This allows them to complement each other's work and bring some valuable contribution. Each one's knowledge should pertain to a particular area of real estate and/or business. Which experts you need will depend on the type of real estate partnership you are putting together. Tip#3: Knowledge and Skill The types of knowledge and skills your partner or partners have will depend on the type of your real estate business, as mentioned before. You will need certain experts to complement skills, depending on the type of real estate business. So, let's take a look at some examples. If you will be developing raw property for sale you will need the following experts: Excavator Engineer/Surveyor Utilities Expert Asphalt Company Real Estate Attorney Realtor®
If you are buying and selling homes or renting them out you will need the following experts: Inspector Builder for Rehab Work Realtor®
Each real estate partner you choose should have solid experience in the real estate sector they specialize in. Draw up a partnership agreement that clearly states all of the expectations and rights of all parties. You need to explain what would be expected if someone wanted out of the partnership. You will also need a business plan that everyone reads and agrees to. Someone (probably yourself) will serve as a manager to organize meetings and handle conflicts. With good, solid plans and great people you can have an amazing real estate partnership.
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