Using Partnerships to Invest
Real estate investing can be a very time consuming endeavour. Many people
decide to bring a 'partner' into their new real estate business to help share
the workload and the risk, but few put much thought into selecting the right
person. Quite often, a person is selected because they are also interested in
investing, they are easy to get along with, and (quite frequently) they have
similar skill sets.
We were quite lucky -- we accidentally became business partners and it turns
out we were well suited for each other. Recently, a friend of ours asked "How do
you get along so well in business?". We attribute it to the following reasons:
Complimentary skills
We work well together because our skills are complementary, rather than similar.
For example, if were both technical people, the business relationship would
probably not work as well. Each of us brings something to the table that the
other needs.
Trusting each other's decisions
Many times, we make independent decisions because: a) there's not enough time to
consult the other person and b) we trust each other. The trust has been
developed over 4 years of working together. In the beginning, we consulted each
other on almost everything, and it slowed us down. Nowadays, for big decisions,
we still consult each other because decisions are usually not as time sensitive.
Ultimately, if you can't trust your partner's decision, why are you in business
with them?
Compromise
With a partner, you have to learn compromise sometimes and not get bent out of
shape on unimportant items. The important thing is the end result, not the
little things in between.
Dividing the workload
A few years ago, we noticed we were "stepping on each others toes" all the time.
This stemmed from the fact that both of us were trying to handle the same areas
of our business (ie. responding to the same emails). At that time, we decided to
divide the workload into logical groups. For example, Paul handles much of the
technical background work (website, email, etc.), while Joanne handles much of
the investor relations. Important decisions are still made jointly, but the
little things are handled by each person exclusively.
Disagreements
People disagree all the time. Sometimes we do disagree, but we see it as being
extremely healthy for our business. If we always saw things exactly the same,
our business would not be what it is today. It forces both of us to move outside
our comfort zone and think outside the box.
Communication
All of the above elements would mean nothing without communication. We have
weekly meetings to keep each other in the loop on our respective work areas. The
key here is that we align on our overall goals and if one of us starts going
down a different path, we talk about it.
Overall, we believe our success resides with the fact that we both equally want
to grow our business and we are prepared to work through our hurdles rather than
throwing in the towel. Many people quit at the first sign of trouble, but by
having a supportive and proactive business partner and by incorporating the
above elements, you can work through challenges together and accomplish more
than you could otherwise alone.
This article is copyright © 2004-2010 Spirepoint Properties. All rights reserved.
Paul Blacquiere and Joanne Beehler are full time real estate investors and have been investing in Ottawa, Ontario, Canada since 2002. They are owners of Spirepoint Properties, a Canadian real estate investing company dedicated to making real estate investing easy.
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