Imagine you\u2019re sitting in a movie theater, excitedly picking at your popcorn as a move trailer for the latest film arises on screen.<\/p>\n
\u201cA tale of betrayal\u201d (clip shows man smiling and shaking hands with others), \u2026\u201da young man must find out who he can trust.\u201d (woman whispering into phone\u2026\u201dThey\u2019re not your friends, John! You don\u2019t understand what they\u2019re capable of!”). Deep voiced narrator continues \u201cComing late 2013, you won\u2019t know which way to turn..\u201d (Ominous and impactful outro HERE), with the title of the movie lingering\u2026.\u201dREAL ESTATE INVESTOR SEEKS PARTNER\u201d (dun dun dunnnnnn).<\/p>\n
Ah, partnerships. The promise of finding another you that is willing to share the workload, money, or both, and tied to the common ideals of your business and lifestyle. If it were only so easy, no?<\/p>\n
As someone that has worked in multiple partnerships, I can attest first hand, they\u2019re great when you merge with like-minded and equally focused individuals that are clear on each others roles, payouts, and expectations. I\u2019ve done it, it worked\/s well, and like any other partnership, as lives change, agreements can change or dissolve, no harm no foul.<\/p>\n
Whether you\u2019re new in the business, or seasoned, nonetheless, let\u2019s review some critical lessons I can impart on you as someone that\u2019s also witnessed bad partnerships sprout and dissolve, usually not on good terms. Repeat after me\u2026<\/p>\n
“I, (your name here), do solemnly swear I will never, ever, do a deal on a handshake. Whether it be my grandma, best friend or preacher, I will have a signed understanding in place before any real estate contracts are signed or work is done.\u201d<\/strong><\/p>\n That wasn\u2019t so hard, was it? Now, if the situation ever arises to where you\u2019re going to work with a new partner and there\u2019s nothing in place, simply say \u201cEasy partner. I took this Oath a few months back and Tracy would kick my rear if she knew we didn\u2019t have an agreement. Mind if we get some details on paper and make it official?\u201d<\/p>\n Roses will bloom and the sun will shine when you\u2019re first working with a new partner, after all, they\u2019re supplying money, time, expertise, or any combination of the three. But, memories tend to get blurred, egos flare, and \u201cfair\u201d becomes much more subjective when closings happen and profits are issued. Not saying your affiliates are deceitful, bad, or greedy people, but why even chance the outcomes when you\u2019ve worked so hard? Like a wise investor\/mentor once told me, It’s easier to change an agreement down the road than to put one in place after the fact. Do yourself a favor and have a partnership agreement<\/a> BEFORE anything on the deal gets started. (see a theme here?)<\/p>\n In the partnership agreement, I suggest outlining:<\/p>\n The best medicine is prevention, so save yourself the stress, sleepless night, arguing, and potentially losing face or friendship with a family member or affiliate by having a detailed agreement in place. And if it feels weird to ask a family member or friend to sign a contract? GROW UP. You know what feels more uncomfortable? Getting stolen from, lied to, or going broke. This is a business, folks, not play time at Chuckie Cheese.<\/p>\n If you’re brand new, you might not even know where to start, what you deserve, or how much work actually goes into what you’ll be responsible for. I’ve been there, gotten the short end, but learned from it and came out wiser. It happens. But you can always negotiate or move on.<\/p>\n So let the drama and double-crossing stay on screen, while you attract and retain great partnerships with those that are supporting your success in the real world.<\/p>\nWhat Your Partnership Agreement Should Include<\/h2>\n
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Sleep Better with a Solid Real Estate Partnership Agreement<\/h2>\n