Having a real estate partner is not only a good idea – it’s what most pros recommend, especially if you’re just getting started in the real estate business.
A partner can provide more operating capital, more borrowing power, experience, new contacts, and so much more. You do, however, need a partner who can bring to the table what you are lacking.
Locating a good partner is one of the most important aspects of being a real estate investor. Real estate is a hands-on business which means you need someone who can help you run it every day. You also need someone with whom you can share the risk and reap the rewards. The best partners complement your strengths and weaknesses.
So here’s how to find the perfect partner for real estate in Boston.
Finding the perfect partner for real estate in Boston means, first of all, finding a partner who complements you. You certainly don’t want a partner who is just like you. Rather, what you need is a partner who can complement and add to your experience and skill set. That is, your partner should be able to fill in your business gaps so that both of you together can provide everything needed for success.
Maybe you have plenty of capital but are terrible at marketing. In that case, your perfect partner will be a savvy marketer who, perhaps, won’t be able to bring a lot of money to the partnership.
Or, what if you’re a carpenter by trade but don’t have the funds to purchase a fixer-upper that you know your sweat equity will turn into a goldmine?
Basically, you want a partner who can do what you can’t or don’t want to learn. You don’t need a partner whose skills, knowledge, and assets are exactly the same as yours.
Ensure Goal Alignment
Although your perfect partner for real estate in Boston should have what you don’t, you need to be on the same page when it comes to goals, values, and business methodology. Without alignment in these areas, you’ll find it much more difficult to be successful, might lead to disagreements, and you won’t have the smoothest exit from your investment when it comes time to sell.
So before taking on a partner for real estate in Boston, make sure there is at least some agreement in the following areas:
- Ultimate goals
- Business model
- Exit strategies
- Marketing methods
- Financial commitments
- Work delegation
- Strengths and skills
- Length of the partnership agreement
Agree on the Time Frame
Similarly, you and your partner for real estate in Boston should be in agreement on the time frame for accomplishing your agreed-upon goals. It’s not enough to want to arrive at the same destination. You should also be in agreement about the route to take and the travel speed.
If, for example, you plan to be in the real estate business for a decade or more, but your potential partner just wants in to make as much money as possible for a couple of years, that’s probably not a good match. But if the two of you do have a similar timetable, it will likely be a successful and profitable partnership.
Look for the Right Resume
It probably goes without saying, but your perfect partner for real estate in Boston should have a good resume. That is, she should have plenty of experience in the area of real estate you’re interested in, along with a track record of good returns on real estate investments.
You simply must perform due diligence here and see proof that a potential partner has done and can do what she claims. Ask for references from contractors, past tenants, financial institutions, or anyone who might be able to speak on your potential partner’s behalf.
Your partner’s resume should demonstrate not only experience but a strong work ethic and business acumen as well. Keep in mind that a partnership is a lot like a marriage: you will be in it for the long haul, so you both have to have what it takes to make it work.
Consider The Agent Advantage
Still, these are just the first steps in finding the perfect partner for real estate in Boston. There are many other business-related and legal issues that have to be addressed. Ultimately, that means you need someone with the knowledge and experience to help you navigate toward success.
Find out how our agents at NextHome Titletown Real Estate can assist you when using a partner for real estate purchases.
Contact us today at (617) 657-9811.
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