Partnerships

If you have everything you need to run your business, there’s probably no need for a partnership. A good partnership is created by finding someone that has a gift, talent, or resource that you don’t have. 

An example is maybe you are good at finding and acquiring great deals but you need a money partner. Or you are good at repairs but not good at managing tenants.

There’s a little more to consider when seeking a partner. I have had many partners in my real estate business and I have much experience to share that may be helpful in your future endeavors.

When you find someone that seems to be a good fit, check the court records for any civil suits or find out if they have any liens or judgements against them, Depending on how you plan to take title to property, you would not want anything to attach to your deals. Also do a google search to see if there is any bad publicity  present. You can’t believe everything on the internet but your customers and associates may see it and pre-judge your business.

I like to spend time with a potential partner by going to dinner,  meet at coffee shops or even a baseball game to get to know their character. Do they have good values or do they have a screw people attitude. Do they have a good work ethic or do they brag about being lazy. I always ask if they play golf because you really find out their true character on the golf course. I saw an interview with President George W. Bush where he said if you play golf with someone, you will find out if they are honest people. The two absolute best Partnerships I’ve ever had, are the folks I play golf with.

I remember my very first real estate deal, A single family home that was in pre-foreclosure. The owner wanted to sell at a great price,  I had plenty of energy and ambition but did not have the money to buy it. I went to my father who was a wealthy investor and ask if he would partner with me. He was reluctant at first but agreed to fund the deal for a share of the profit. I was so grateful and I had the attitude that I wanted it to be successful for him more than myself. I wanted to make it work and show him I was a good partner and he could rely on me. Afterwards we did many deals together and they were all successful.  I have had many other partners  because I was always good at finding deals. That attracted many other potential partners. People would approach me wanting to get involved so I never had to seek out future partners.

I have owned rental houses with partners that always worked out well, I was always good at managing the properties and doing any needed repairs where the partner was excellent at keeping the records, doing the taxes, and dealing with tenants. I have had partners that were good at maintaining HVAC and electrical systems on rental housing which goes a long way in making successful ventures. 

On the other hand there can be partnerships that  work very well for a while but then they come to an end. That is why you need a written agreement. A document to cover the “What if’s” . Spell out exactly what happens if your partner suddenly dies or gets very sick. What happens if greed takes over and the partner wants out and takes everything you built together. What happens if your partner gets a divorce and their spouse wants it all. These are things that can happen and you better cover these things in a written agreement.

I personally have had similar things happen in my partnerships but I have always believed in “you reap what  you sew” I have always tried to be a good partner and have my partners best interest in mind. In return, I have attracted partners who seem to be the same. They go the extra mile to be a good partner and we have enjoyed very successful partnerships. They have an “ I’ve got your back” kind of relationship. 

© 2022 by Tony Youngs

Tony Youngs is a real estate investor, author, lecturer, and real estate trainer of the Hidden Market system.