Vetting Potential JV Partners

[Daniel Han]

Hello BP members,

I've been a member of BP for a little over a year now but I have yet to jump into investing with partners. I would like to partner with some people but I don't know the best way to do a background check on them. 

The reason I ask this is because I've been browsing the forums and there are some discussions of BP members getting scammed (even by other members of this site).   I have yet to find recommendations of good background check agencies or companies. Can anyone recommend a good vetting agent or professional organization? 

Thanks in advance!
-Dan

[Nick Cuttonaro]

First: Google their first and last name. You can tell a lot about someone by looking at Page 1 of Google for their name. There might be more juicy items about their past on deeper pages of Google so be sure to go deep. Look for complaint and gripe sites (i.e. RipOffReport.com, PissedConsumer.com, etc.) and be especially cautious if you find anything there. There's always two sides to every story, but if you see a site like that appear, proceed with caution.

Second: If you're looking for more substantial information on an individual I'd suggest getting a subscription with InstantCheckmate.com. I have an account (it's like $20 per month) where you can perform unlimited searches on anyone you want. You can see all the addresses they've lived at, what states they've been residents of, criminal convictions, all their email addresses, and their online social profiles. You can obtain a wealth of information on someone using Instant Checkmate.

Third: Use the information you've grabbed from Instant Checkmate on their states of residency and obtain active and closed court case records from state websites. This is important to find out if they're in lawsuits currently and to understand their legal history. Do they have a tendency to sue? Do they have a tendency to be sued? Are they reckless drivers with speeding violations? Drunk and disorderly conduct in public? Oh my, you'll be surprised by what you find!

Whenever I'm doing a transaction of significance or contemplating a partnership or JV arrangement I'll use the steps above. Like everyone, I've been burned in the past and I'm trying to avoid being burned again. Performing due diligence is imperative.