A real estate business partnership — at least one that has all the right pieces in place — can elevate just about any investor’s career to the next level. If for nothing else, the only reason an entrepreneur would go into business with another investor is for help in an area they are currently ill-equipped to address. However, it is important to note that working in tandem with another investor will only benefit each party involved if they take the appropriate steps and lay the groundwork for a prosperous career together.
The nature of a real estate business partnership is inherently symbiotic. At the very least, each piece of the puzzle is just as important as the next. That said, the most successful real estate business partnerships are those that mind due diligence and see to it that everything is in place before moving forward.
Let’s take a look at a few of the most important elements a real estate business partnership must exhibit:
Drafting A Real Estate Business Partnership Agreement
1. Real Estate Business Partnership Roles & Responsibilities
For a real estate business partnership to meet the expectations of those forming it, realistic roles must be assigned to each individual. If for nothing else, clearly defining the responsibilities of each partner will lay the foundation for a prosperous career in the real estate industry. What’s more, it’s vitally important to lay everything on the table before committing to something as serious as a real estate business partnership; nothing should be glossed over. At this point, it is absolutely necessary that every partner has a clearly defined role in the business moving forward.
As perhaps one of the most critical junctions two real estate partners will encounter, defining the roles and responsibilities of each should account for individual characteristics, competencies, strengths and weaknesses that can be relegated to a respective role. Be sure to include the following roles in the final draft of your real estate business partnership agreement:
