Partners in crime...I mean business!

Partnerships are a bad idea.  They never work.  Do not be partners with your friends, it will ruin your friendship.  These are the things I constantly hear about business partnerships when people find out I started a real estate investing business with my business partner, who also happened to be my college roommate and great friend.  It has now been over two and half years since we first discussed going into business together and over a year and half since we have been in business together. So how are things going?

 They could not be better!  K&V is progressing ahead of schedule and we have met and exceeded all of our goals so far.  Like a marriage (don't read too far into this) a business partnership is always easier when things are going well, but I attribute our success and satisfaction with the arrangement more to who we approach things.  For those of you interested in partnerships, I hope I convey some of the things that have worked well for us.  Also, please comment if you have had success with partnerships, business divorces, or any other partnership stories to share. 

 When Ryan and I started K&V we sought for a 50/50 split (both in financial contributions and work).  We knew this would be difficult to achieve, as I would be out of the local area of our investments for the first several years.  Like any relationship (business or not) communication is the key.  We discussed this issue in depth until we both knew the details of the arrangement, and then we put it on paperwork.  "You must not trust each other if you had to put it on paper."  That is a common reaction but completely off base.  Both of us understand that we are running a business, and we want to do things the "right" way.  As I discussed in my last blog post, there isn't always a "right" way, but together we discussed what was right for us.  We try to put everything in writing, for historical records and to serve as a constant reminder of the agreements we have made.  

So how is it working?  We obviously could not predict everything we have come across, and there is no way you can account for every contingency and possible scenario when planning a business venture.  This is where our friendship comes in handy.  Through discussion we have easily conquered every issue we have faced, and had fun in doing so.  Just like our days in college, we have fun working together.  While we love our business and look forward to moving forward, we also enjoy working together in general and having fun.  When you can sit back over a cold beer or glass of bourbon and laugh at your mistakes, you will find success and when business is not fun anymore, the partnership probably won't last much longer.

Note:  I just proof read this blog post and I made a partnership sound a lot like a marriage, but I guess that is the point I was trying to get across.  Like a marriage, a partnership requires constant communication and a give and take by both parties with the end goal in mind.  I hope to hear some success stories and some horror stories on partnerships, so comment away!  And don't forget to check out our website www.kandvinvesting.com