If you are looking to expand your commercial real estate portfolio, at some point you may consider taking on an investment partner. There are pros and cons to business partnerships, but they can prove lucrative for both parties when they succeed.
Below are some tips for selecting the best partner for your commercial endeavors.
They are trustworthy
You should never have to worry about your business partner’s integrity in any given situation. Being able to trust your partner is the cornerstone of your business partnership, so be as sure as possible when selecting a partner.
You share the same vision
While it’s handy to have complementary skills, you and your potential partner should share the same vision of your business partnership goals. For instance, if one partner intends to reinvest the profits and the other plans to buy a yacht, the two could clash over their apparent commitment levels.
You each appreciate the other’s role
Some of the best partnerships are where the venture is funded by one partner who takes a hands-off approach to the day-to-day operations. The other’s commitment is proven by their sweat equity, i.e., the actual labor and time invested in the partnership.
You both have a passion
Passion ignites drive, and it is important for both partners to be equally driven and committed to meeting shared goals. If one partner is sacrificing time and effort and the other is “phoning it in,” problems arise.
Plan now how to end a partnership
Many problems between partners can be averted by a clearly defined partnership agreement that details how the partnership can be dissolved under a variety of circumstances.