To JV or not to JV? That is the question.

[Account Closed]

I see people form partnerships all the time; some temporary, some permanent. The trouble I see with so many partnerships is that partners are not always bringing something different to the table. In Real Estate we can be very transactional, which is fine. You can JV with someone for one deal and then the partnership naturally dissolves upon completion of the deal. If it went well, you could do another deal together and have an additional temporary partnership. When you are looking for a partner, whether on a deal or a business venture, I highly recommend bringing someone in with a different set of asset. It can be a skill set, it could be something as simple as money, or it could be a built up system you wish to leverage. One partner brings the money and the other brings the deal. That is a productive partnership. One partner brings the deal and the other brings the skills, system and experience to make it a deal that sees everyone get paid. That kind of partnership works well. Choosing a partner because they are a friend is probably not the best idea. Especially if the friend is like-minded. Why would you bring that person in as a partner? If the honest reason is because you are scared to start a venture on your own, then you need to take a hard look in the mirror and decide if this is for you.