You’re interested in investing in real estate, but you’d like to start an investment partnership. You believe that you and another business professional – or a friend or family member – will be able to have far more success together than either of you would have on your own.
However, you do want to make sure that you pick the right investment partner. How do you know if you have someone who can help you realize the success that you believe you’re capable of?
Do they have the same goals?
The first thing to ask is whether or not the two of you have the same goals. You may also want to ask them about their vision for the investment partnership. These goals can be as simple or as complex as you’d like, but you both need to have the same focus in mind.
Do you agree on the responsibilities?
You may both be investing money, but you’re going to have to divide some of the responsibilities as you run the partnership. The two of you need to agree on these roles in advance. Make sure that you talk about them and get it in writing.
Are you investing equally?
If the two of you are going to get the same return on investment or you expect to see the same earnings, then it’s also important that you’re investing equal amounts. You don’t want to get a business partner who expects to reap the same rewards without putting in nearly as much money or as much work. Both are very important.
Once you decide to start your investment partnership, then you need to know what steps to take to set it up and how to resolve a dispute if one should occur.