How to Partner Up With People

[Jason Malabute]

I called my mortgage broker this week and learnt about yet another emerging trend that gave me goosebumps! He told me that the agency lenders are now becoming more particular about having key principles on deals they finance. The main reason behind this increased consideration of key principles is that too many part-time investors are getting into real estate investing and lenders don’t want to take on heavy risks.

Some of these key principles are:

• Have local multifamily experience
• Own a 5+ unit deal for at least 5 years
• Own two or more 5+ unit deals for eat least 2 years
• Have a net worth more than or equal to the loan amount

I got goosebumps when I learnt of it because my parents always used to tell me about the pitfall of partnering up with people. However, I have always seen it as a limiting belief that needs to be snapped.

My first ever partnering experience happened back in my college days when I tried to open up a wine bar with a former friend of mine. Both of us were too young and unseasoned to be stepping into that business, which is why it went disastrous.

Still, I learnt a lot from that experience, especially about partnering up in a business. This is why now I am going to consider taking the following steps before choosing a partner:

• Walkthrough their properties to see how well managed and maintained their properties are.
• Spend a week with them in person
• See how they treat their family
• See how they treat their friends
• Go to a restraint with them to see how they treat the waiters

I believe that knowing how they treat others is necessary because that’s how they may treat you too. Additionally, I perceive partnership as a kind of professional marriage. You have to date slowly and get to know them better before you get married (becoming partners, I mean).

Certainly, if you want to achieve heights in the real estate business, you need to eventually partner up and get over your fears.