There are opportunities aplenty in the world of real estate and it is simply a case of maximising your own strengths and bringing in others to cover areas where you may be lacking. When you bear in mind we all now have the ability to deal in international assets the idea of finding an investment partner(s) is something to consider. So, who would be the perfect investment partner for you and where would you find them?
List your strengths and weaknesses
We all have very different strengths and weaknesses which is why joint ventures and investment partners are becoming ever more popular in the world of real estate. We have our own ideas, our own styles and our own visions for the future but there is nothing wrong in venturing outside of your comfort zone. However, before you even begin to look for the perfect investment partner you should make a list of your strengths and weaknesses and it will become fairly obvious where you need to bring in outside assistance.
It is worthwhile making a list of the skills and experiences required to be successful in the world of property investment and then rating yourself on a scale of one to 10 for each of these elements. Even if you don’t decide to go down the route of an investment partner this process will highlight your strengths and weaknesses, which you can address in the future.
Keep it business like
While many people will joke about “not mixing business with pleasure” it is certainly something which you should bear in mind. Working with friends and family can be extremely rewarding but there will be occasions when you disagree and these disagreements could impact upon your relationship. As a consequence, many of the more successful investment partnerships will bring together people from very different backgrounds with no previous relationship.
Even before you begin looking for a business partner you should already be considering some kind of formal legally binding agreement on which your investment relationships will be based. You would need to take professional advice on this particular subject but it will be worth its weight in gold as it should help to avoid conflict, confusion and fallout in the future. The business world is littered with investment partnerships which literally destroyed previously long-standing friendships.
Where to look for investment partners
The longer you mix in property investment circles the more people you will come across who have different experiences, different contacts and perhaps may be looking for joint-venture partners themselves. In a perfect world you would probably look for recommendations from trusted parties before you even approach a potential investment partner. There are also other routes which have opened up with the Internet although whichever road you go down you will need to do background research on the third party in question and ensure that there are no “skeletons in the cupboard”.
Once you have identified your strengths and weaknesses, put together a joint-venture/joint-investor agreement and found a potential partner, it is time to move towards the business end of this relationship, finding suitable investment properties.