One of the best ways to scale your real estate business is through partnerships, but there is a catch: You need the RIGHT partnership. A successful partnership is like a marriage—you need trust, communication, and a shared vision to make it work. These are not things that can be done overnight. Yet, people rush into partnerships all the time and most often than not, end up getting burnt.
I have a total of four partners in different business ventures, with one of the partners being my husband. At first, I was hesitant to get into partnerships, but I knew that it would help me achieve my goals faster. Two years later, I can attest to this.
I was able to double my portfolio and cash flow by leveraging partnerships.
Every partnership has taught me something unique, and I’d like to share some tips on what I believe contributes to building a strong partnership.
Partnerships with Significant Other
I’ll start by saying that partnerships with your significant other are not the same as partnering with someone else. You probably know this already, but worth mentioning.
In a business partnership, decisions need to be made with a clear, objective mindset, often requiring tough conversations and even tougher decisions. When your business partner is also your life partner, it can complicate things, making it harder to stay objective and separate emotions from business.
If you plan on going into business with your significant other, you must separate your business and personal relationship.
Don’t skip in the steps below, just because it’s your spouse.
Now that I got that out of the way, let’s dive into my success tips to a successful partnership.
Consider Your Partner’s Needs and Wants
The first step in building a strong partnership is understanding that it’s not just about you. Your partner has their own needs, goals, and expectations. It’s so important to consider these from the beginning. I don’t believe anyone should get in a partnership without having an understanding of each other goals.
To get started, have an honest discussion about what each of you wants from the partnership.
When I got into my first partnership, we deep dived into our individual goals and how our partnership would help us achieve those goals.
Be prepared to make compromises where necessary. It’s unlikely that both of you will get everything you want, but a willingness to meet halfway can go a long way in building a strong foundation.
Shift from “I or Me” to “Us or We”
Once you are in a partnership, it’s no longer just about your individual needs and wants. A successful partnership requires a shift in mindset from “I” to “we.” In my opinion, failure to make shift is why many partnerships fail.
As partners, you will want to make decisions together, considering the impact on both partners. For example, if you want to sell a property for personal reasons, how does that affect your partner?
In doing so, you will also need to present a unified front to the outside world. Whether you’re dealing with lenders, tenants, or other investors, it’s important to show that you’re a cohesive unit.
Align Your Goals
For a partnership to work, both partners need to be on the same page about where they’re headed.
My partners and I set both short-term and long-term goals from day 1. These goals reflected our shared vision for the partnership.
Check In Regularly! Communication is key to any successful partnership. My partners and I talk regularly to ensure that we are on the same page and to address any issues before they become major problems.
Be Transparent! Use these check-ins to be open about what’s going well and what’s not. Transparency builds trust and helps avoid misunderstandings down the line. Even if that means telling your partner someone got shot in front your property 😅
Stay in Your Lane
A good partnership involves recognizing and respecting each other’s strengths and weaknesses. Knowing when to step back and let your partner take the lead is crucial!
Early on, decide who is responsible for what. Clear roles and responsibilities prevent overlap and confusion, making the partnership more efficient. As new responsibilities evolve, make sure to clearly outline who does what.
Once roles are defined, trust your partner to handle their area. Micromanaging , or second-guessing each other will create tension and undermine the partnership.
For example, my partners handle deal acquisition and take on the renovations.
A lot of people get hung up on trying to split responsibilities 50/50. In my experience, that is neither possible, nor productive. Instead focus on how your skills can supplement each best.
Don’t Skip the “Dating” Phase.
Get to know your partner and give yourself time to evaluate whether a partnership is in alignment with your goals.
My partners and I had several meetings and conversations before we jumped into business. We talked about our personal finance situation, our experience, our failures and accomplishments, our hobbies, personal goals, etc.
In my opinion, in addition to being aligned in business, your partner should be someone that you would want to be friends with long-term. After all, you are about to spend a lot of time together!
Ask yourself: If you were stranded on a deserted island, would you want this person by your side? If the answer is no, they may not be the best partner for you.
To Wrap Up
Forming a strong partnership requires effort, communication, and a shift in mindset – Just like a marriage!
Before you jump into partnerships, you need to consider whether you are willing to do what it takes to form a successful partnership.
For me the most important shift and the one many people fail to work on is that, it’s no longer about “me”—it’s about “we.” When you approach your partnership with this mindset, you’re setting the stage for long-term success.
With this being said, partnerships are not for everyone and that’s okay! There are many other ways to scale your business like leveraging private money!
What are some other key items do you think are important for successful partnerships? Comment Below 👇
P.S. Looking to connect with a community of like minded investors, a BS free zone, where you are not just another member, just another number? Check us out at The FI Tribe.
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