July 2018
Should you do Partnerships with Other Investors? By Tom Zeeb, TractionRealEstateMentors.com
Are two better than one? Is there strength in numbers? Should you do partnerships with other investors? The answer is: “it depends”. There are a lot of criteria to evaluate when considering if you should take on a partner in your business.
Property management Eviction services Residential and commercial real estate sales Contact Christian Bryant: Christian@ircenterprises.com, 503-999-0477
In my experience and from my observations, partnerships of inexperienced investors tend to feel good for those partnering up, but don't succeed because there is no real balance of skills and knowledge. And there are quite often very different objectives as well that make the two parties incompatible as long term business partners. Inexperienced potential partners feel good together because both investors are struggling and afraid to get started. Therefore they feel comfortable with each other because they are in the same boat.
Travis Wandell 425-503-3897 travisw@veristonecapital.com
However, two struggling people with no experience do not bring much to the table. It is a partnership without any true benefit to either party other than having someone to share the ride with. Intermediate to advanced investors also need to be cautious about partnerships. Once someone has done a few deals, they develop their own style and method for doing business. This may clash with another investor, especially as entrepreneurs tend to be very independent minded and strong willed.
Paul McGann Account Executive 424.336.7927 | 805.402.2969 | paul.mcgann@civicfs.com
In the case of both the beginner and advanced investor, it is important to be sure that both sides see eye-to-eye on what their personal financial and business goals are. Continued on page 7
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