The Power of Partnering to Buy Multifamily Properties

Partnerships are something that can be a key resource to you tackling large multifamily properties, now you have to remember it is not a necessity to have a partnership and when you are going to engage in a partnership it is very important that you layout from day one what is the interests and the motivations of each partner, to make sure you align.

Strategic partnerships can be the most powerful thing that is going to help you succeed exponentially within the process of buying multifamily properties, however a partnership that is wrong, could be that it's the wrong mix, maybe you both have the same strengths, maybe the vision is different and there's not alignment in goals. There are many reasons why it can be wrong besides just someone being a bad partner, so you have to make sure that you have your core focus in mind and you're able to tell that to the other person clearly. You can define what you want and speak out from day one what you're going to want within this partnership, it's a lot easier to do it before you get wrapped into a mega-deal and you buy a property and now you've brought in an investor's capital and now you're responsible for controlling a major asset and now there's dysfunction in between the general partnership, because you did not outline your goals and your visions from the day.

So make sure that when you are taking on a partnership it's clear where your outcome is going to be, so when a rough point comes out within the partnership you're able to have a very quick and concise talk and conversation to get to the outcome in mind and which direction you need to go. Partnership can be made up of many facets, there can be the partners that are out there finding the deals, there are the partners that can be the balance sheet, that can be the experience, can be the credit, that can be signing on the deal, there can be the partnership that's doing the asset management for the property, there could be the partnerships that are they're bringing the capital or finding the capital. There are many different hats that these partners can now wear, however if everyone is not aligned in the focus it's going to have a flat tire from the start, so think about your core business today what is it lacking what kind of partner do you need to bring in and what does that partnership look like?

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