Read This Before Investing with Your SO (or Family)

Would you ever go into business with your spouse or significant other? Some of you might be saying, “Sure, I already have and it’s great!” while others are thinking that going into business with their husband/wife/boyfriend/girlfriend is literally the last thing on Earth they’d ever do.

While I don’t have any personal experience in that particular area, I do know what it’s like working with family members. I’ve also known a few couples over the years who have ventured into real estate investing together. Some of them have been highly successful working together; others have been on the verge of divorce because of it.

Here’s what I’ve learned from my own experiences and from talking to other investors:

Listening is Crucial

We all know the difference between hearing and listening, right? Hearing is just something you do with your ears; listening is seeking to understand. When you’re in partnership with someone you’re close to, listening is crucial for the success of your business. If there is no understanding between the two of you, you’re not going to progress. At best you’ll be stagnant, at worst you’ll want to kill each other. The solution to this is simple: truly LISTEN to each other. Strive to understand where the other person is coming from, and you’ll prevent many potential issues from even developing.

Respect is Just as Important

Respect is critical, too, and ties in closely with listening and understanding. Respect your SO/family member as an intelligent person with valuable ideas and important contributions to your business. If you don’t, problems will most certainly arise. Naturally, you’re not going to agree on everything, and sometimes you’ll find yourselves at a total impasse. But if you can, at a minimum, recognize the other person’s opinions as having value, you can begin to find compromise - and it all starts with respect.

Appreciate Each Other’s Differences

One of the beautiful things about partnerships and relationships in general is that each person has something different to bring to the table. One person might be a numbers whiz, and the other may have amazing people skills. Each has something unique to offer, and those differences should be capitalized on. Use one another’s strengths to your advantage, and where there are weaknesses, work to compensate for each other. Recognizing and appreciating each other’s differences will ultimately help your business move forward.

Don’t Forget Who You are Outside of the Business

When you’re focused on something as major as a shared business that your livelihood depends on, it’s easy to lose sight of other parts of your relationship. Don’t let your business consume you. Remember that you have lives outside of that, both together and separately. Carve time out of each day to do something completely unrelated to real estate, whether it’s something you do on your own or together.

For me, working with family has been a positive experience. Sure, there have been some ups and downs, but it’s been successful overall and we continue to learn as we go. As for investing with a spouse, I’m not sure if I would ever do it, but I do feel that my experiences with my family have taught me enough about relationships and work to be successful at it. Before entering into any business with a significant other or family member, make sure that each person is prepared for the toll it can take on the relationship. Keep the communication open, respect one another, and at the end of the day, remember that you love and care for each other and that’s what truly matters.