Why I Haven’t Brought In Partners (...yet)
You will read a lot on the benefits of working with partners to purchase real estate. Partnerships can be a great way to add to your cash, time, knowledge, skills, and contacts. Partners can help you scale faster and reduce your financial burden by bringing another source of funds to your business. So if there are so many great things a partner can bring to my business, why haven’t I created a partnership yet?
It’s not as though I haven’t thought about it. Actually, I have thought about partnerships a lot. I have researched various legal ways to structure the agreement, reflected on what I can offer a partner and what I would want in return. I have done a mental review of my contacts and have a short list of potential future partners. But to this point I haven’t pulled the trigger.
So Why Haven’t I?
While partnerships can offer many advantages, they should never be taken lightly. A partnership is a lot like a marriage…a relationship that should be entered into after careful consideration and with substantial knowledge of each other.
In a sense, my husband is already my partner in this business and he trusts me fully. We have been together for almost 20 years and he understands my approach, shares my risk tolerance, knows my work ethic and decision making process. I like that I don’t have to present him exhaustive research and professionally underwritten deal analysis in order to get his support to move forward. We share the same goals and have the same vision for our real estate portfolio. I do involve him in all decisions and make sure we are always on the same page. I never move forward unless we are in agreement on a topic. But this is easy for us because we are so well in sync.
The thought of building this level of trust with someone else makes me a little exhausted! Trust and teamwork are not free or automatic. They take time, effort, honesty, experience and a proven track record to back it up. At this point, I haven’t found that the outputs of a partnership justify the inputs it would take to build one. At lease not yet. I like performing analysis and seek out my due diligence, but I also trust my instincts and don’t like having to justify my decisions to someone who doesn’t know me.
So if you are building your real estate portfolio on your own (or with the help of your spouse), don’t feel pressured to create a partnership before you are ready. You can find your own success and chart your own path on your own terms. Keep your mind open to potential partners, just don’t think that it is mandatory for your success.