What Do You Look For in a Real Estate Partner?

Question

I tend to think of a partnership like a marriage, and as such, any partnership decision is based upon potentially being tied to that partner. What about you?

What do you look for in a partner? Are there any personality traits you're specifically seeking out to complement you? Who is your ideal partner?

This is a look at the ideal hypothetical partner --> No solicitations please.

Ibrahim Hughes · Answer

Definitely honorable personality traits like honesty, integrity and reliability are key for me. Outside of that (I can't even consider partnering with someone who doesn't possess the aforementioned traits) I look for someone to bring strength in areas where I may be a little weak. I excel in finding and closing deals on the purchase side. However, I'm not as savvy with marketing and sales. I'm great at planning and analyzing rehab projects but not as good with dealing with contractors. I can buy, fix and sale but understand that I do much better when I can focus on my strengths while developing my weaknesses at my own pace. On my last deal I happen to find the ideal partner. It was a wholesale deal and he brought buyers to the table who eventualy enabled us to close the deal. He also has a strong management and construction background. It just so happens that he was weak in the areas where I excel in. He's also a good family man and active in his church (I'm not religious but I can appreciate folks who have a strong sense of spirituality in what they do). So we decided to form a partnership, my first long term business relationship in about 8-9 years. My last partner was my Brother. We worked well but his heart was and still is in the arts and the entertainment business, not real estate. My new business partner brings everything my Brother brought to the table and then some. He's also Spanish speaking so now we get to tap into markets I previously shied away from because I didn't speak the language.

Dale Osborn · Answer

Real Estate Partner Traits: 1. High Ethical Standards - Honest - True. 2. Strength in your weak areas. 3. Work Knowledge or brings additional funds to the table. 4. Self-Motivated - does not need day-to-day supervision. 5. Commits to set goals and works toward reaching those goals. 6. Knowledge - Expertise - Continues to learn. 7. Adaptable to changing environment. 8. Enthusiastic. 9. Good Communication skills. 10. Good Negotiation skills 11. Sense of Humor so when things go wrong - just keep going. 12. Strong Sales/Marketing skills. 13. Knows the local market. 14. Understands Risks - willing to accept them. 16. Team player - not working towards just individual goals. 17. Strives for Win - Win - Win for all.

Jeff S. · Answer

A history of stability. Honesty. Intelligence. A willingness to work and do more than their share (everyone needs to be that way). Conservative. Strong financially.

Bryan Hancock · Answer

IMO partner-level value equals: 1. The ability to raise equity 2. A good debt guarantor 3. Someone that can find deals 4. Someone that can help execute business plans by bringing in contacts, expertise, etc. Pretty much everything else you can hire out a lot cheaper using vendors. To me real estate also lends itself toward allowing one to construct separate partnerships for each deal using joint ventures. This has a whole host of advantages and disadvantages, but it keeps the ability to design a custom deal for each project.

James Vermillion · Answer

I wrote an article about the benefits of partnering in real estate and in it discussed a lot things to look for in a partner. http://www.biggerpockets.com/renewsblog/2012/06/19/partnerships-benefits-team-real-estate-investing/ To sum it up you need someone that you can trust and know cares as much about the success of the partnership as you do. If that exists, you can be confident that both of you will work equally hard to ensure success. Also, there is no point in having a partnership if both people have the same skills. The best partners each bring different things to the table and allow the partnership to have success in areas where each individual could not have had alone. Partners should be able to motivate each other and push each other as the partnership expands and discuss issues openly when they come up.

Henry M. · Answer

I am personally attracted to partners who are very creative, positive, and the ability to resolve problems. Loyalty is a must. Someone who is going to get into the trenches with you... Someone who is not afraid of success. A never quit attitude, not to mention tough minded and sharp. Someone who has the capability to negotiate and close the deal (like me ;) Someone who has my back as I'll have theirs... A person who is honest and a partner I can trust. Lastly, someone who is not quick tempered and has a good sense of humor. Business can both be passionate and fun. Finally, the ability to always want to learn... And see the BIG PICTURE ahead. Yup, Joshua... Like a marriage.

Don Koss · Answer

Agree with all of the above, but one big thing that I have seen dissolve strong partnerships is marital instability. This is the one item that is hard to predict, but can ruin and dissolve a partnership quickly. RE is not easy to liquidate, even in the best of times, and when someone is going through divorce - they generally need cash fast. Not sure as to how you can insulate yourself from this, but my partnerships allow one partner to buy the other out at a deep discount. As Dave Ramsey one said "A partnership is the only ship that doesn't sail." That said, all of my RE is in partnerships. Best Regards, donko