{"id":79510,"date":"2020-02-14T09:00:33","date_gmt":"2020-02-14T16:00:33","guid":{"rendered":"https:\/\/www.biggerpockets.com\/renewsblog\/?p=79510"},"modified":"2021-03-16T12:07:00","modified_gmt":"2021-03-16T18:07:00","slug":"made-in-heaven-partnership","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/made-in-heaven-partnership","title":{"rendered":"4 Lessons I’ve Learned From My Made-in-Heaven Real Estate Partnership"},"content":{"rendered":"

My current real estate business relationship is truly a match made in partnership<\/a> heaven.<\/span><\/p>\n

Unfortunately, a lot of people don\u2019t seem to be able to say this. They aren\u2019t in good business or real estate partnerships. Maybe you\u2019ve even had some bad ones before (I\u2019ve had several). Yet when you do find that great match, you can enjoy going much further and faster than you could alone. The company can make the journey so much more enjoyable, too.<\/span><\/p>\n

So what should entrepreneurs and investors be looking for in a great partner and partnership<\/a>? Here\u2019s some insight on how things are structured in my real current partnership.<\/span><\/p>\n

Create Alignment<\/h2>\n

You\u2019ve got to have alignment. If not, you\u2019ll tear everything to pieces as you head in different directions. <\/span><\/p>\n

When it comes to picking a partner to have in a company, especially when equity is on the line, make sure your goals and interests are aligned. If one partner wants to build the company to sell and the other has a vision of building to continue as the long-term operator, it may not be the best partnership. I always recommend finding someone who shares your vision. <\/span><\/p>\n

Yes, there are times when we disagree on things. I mean, business isn\u2019t all flowers and roses all the time, right? We don\u2019t see eye to eye on everything all the time, but we always work things out to reach an agreement and get on the same page. At the end of the day, it comes down to achieving the big-picture vision. <\/span><\/p>\n

Decisions should always be geared toward that. \u00a0<\/span><\/p>\n

\"Man<\/p>\n

Related:<\/strong> The Most Flexible & Tax Efficient Way to Structure a Partnership<\/a><\/em><\/p>\n

Find Someone Who Completes You<\/h2>\n

My current partner is a numbers guy. He\u2019s always working with those darn spreadsheets. When it comes to implementing systems<\/a>, he is the go-to guy. My side has always been about the sales, marketing, and business development. <\/span><\/p>\n

Personality-wise he\u2019s more of an introvert. I\u2019m an extrovert. <\/span><\/p>\n

Some skills may overlap. This is completely fine\u2014especially in areas that are of the highest value for the company. For us, this is property acquisitions, running rehab numbers, and property management. <\/span><\/p>\n

I know how to read a spreadsheet; it just doesn\u2019t excite me. He can analyze a deal<\/a> and fill out a contract, but he\u2019d rather be in the office than knocking on doors and meeting people. You don\u2019t want to have identical skillsets\u2014that makes one of you unnecessary. Plus, then you\u2019ll have to hire out to cover more gaps for certain needed skills. <\/span><\/p>\n

But understand not just what you are good at, but what you makes you thrive, too.\u00a0<\/span>
\n
\nRelated:<\/strong> The Biggest Real Estate Moguls Relied on Partnerships. Here\u2019s Why You Should, Too.<\/a><\/em><\/p>\n

Know Each Other<\/h2>\n

Carrying on from the last point, there should be clarity about roles and skills, etc. The great thing about structuring a partnership the right way is that the other partner should know when he needs to take over something. <\/span><\/p>\n

In the event we need to run financials, my partner will know to take it and run with it. <\/span>Likewise, when it comes to anything in the marketing department, I know that\u2019s my responsibility.<\/p>\n

This factor also rolls over into understanding when your partner has their plate full or if something else outside of work is demanding some of their attention.<\/p>\n

\"two<\/p>\n

Have a Plan for All Scenarios in Advance<\/h2>\n

Anything can happen. I expect this current business relationship to last. Many don\u2019t. Sometimes you can\u2019t tell in those early days. Just like in personal relationships, some people change, some don\u2019t, and some appear to be on the same page but aren\u2019t. <\/span><\/p>\n

Some become more invested when things go well. Others might derail your work. Or you or your partner may face totally unforeseen circumstances in your personal lives. <\/span><\/p>\n

You just don\u2019t know. <\/span><\/p>\n

What I do know is that it is always better to have good partnership agreements and to have a plan for all contingencies. It makes things much cleaner, simpler, more streamlined, and more amicable if things don\u2019t work out.\u00a0<\/span>The partnership agreement will give you a predetermined guideline to handle the toughest situations. <\/span><\/p>\n

And when this is in place, your clients will be better served, as will all of the partners.<\/span><\/p>\n

\"\"<\/a><\/p>\n

What have you learned from your real estate partnerships?<\/em><\/p>\n

Let me know with a comment!<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

A real estate partnership can either make or break your ability to build a thriving business\u2014in addition to making work more enjoyable. Unfortunately, a lot of people don\u2019t seem to have good business or real estate partnerships. Get tips from someone who’s built an awesome team here. <\/p>\n","protected":false},"author":12140,"featured_media":122304,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4241],"tags":[],"class_list":["post-79510","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-business-management"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/79510","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/12140"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=79510"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/79510\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/122304"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=79510"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=79510"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=79510"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}