I'm writing this blog from my past business with a partner. Also to try and tell you what to look for in a partner. A business to me is an investment and you need to protect it as much as possible. It started 7 years ago, down on my luck not making much money and had 3 kids all boys love them to death and my wife great woman. I bought Carlton Sheets books on real estate not bad some of the programs he was teaching didn't really work here in NJ or I was not into them enough to take action on them.

But I did learn something on the courses was he said if you are  down on your luck and don't have means or leads to get financing get a partner. WOW a light went on and I talked to my wife about it. She worked for a school bus company at the time and she started asking the people she worked with and 1 lady came to her and said yes my husband always wanted to invest. I was looking and asking everyone I new if they wanted to invest and got no where.

So we set a meeting took the guy and our wives out to eat. I should of known in the begining when we were at diner in Red Lobster and I started about the business and he said to me lets not talk about this right now there are women here and I said laughing so. He replyed sorry I don't talk business with women present it just bad luck. I laughed and said then what are you doing married his face dropped and the women laughed. So we finished diner feeling a little weird my wife and I and set up another meeting just him and I the next day in his back yard.

I had found a house in South River NJ it was a 2 family needed some work. So I meet him that night. His first thing out of his mouth was don't feel bad about me and women to me there bad luck when it comes to business. I said no problem and to myself I said to my self you are weird dude but lets see what you have to offer to this business. Mistake one if you don't feel comfortable about what your partner is saying get out. So we started talking I was telling him about myself and what I know about construction and home remodeling, He was impressed. Then I have a home how I broke it down to buy and renovate and rent the property and how much we had in positive cash flow. He again was impressed. He said to me I can't get another mortgage yet I said no problem didn't want to know why, I said put it in my name and you put the down payment and I will try to put the money in the mortgage for the rehab work about 20'000 to get it nice and pass codes for renting all I need is a cosigner.

He said no problem on the cosigner but I will put up the money for rehab, Tried to talk him out of it but he was insistent. He would put up the money. Okay fine purchased the property. I did all the work rehab work finding renters while he sat and watched from his home. My wife thought I was nuts, I said to her be cool I have this. My wife, kids and I where in an apartment renting I said to my partner after everything was done in the home in South River and rented and started a business with a name and being registered with the state no corporation just a small business can I buy another home my home with some of the equity from south river. He gave me a fight and I said to him I didn't get paid for working on South River buying it or doing all the work and renting it out and I paid for advertising. Then He said okay I only needed 15'000 to buy from my mother in law she wanted to retire and the home was to big for her and her husband it was only 12'000 square feet. but I bought it. 

So back to the business I asked my partner if he was able to find any other homes he said I have not been looking. Bad stuff another Bo Bo mistake. I'm holding down 2 jobs at the time Fixed up South River and my own home I just purchased couldn't beleive he was not looking he said to me I don't like talking to people on the phone I said so, will you just find the bargains he said no time as he works four hours in 2 days and the other 3days 8 hours and make 120'000 a year and I was making 30'000 at 2 jobs. So I was bringing the paper to work and phone numbers and calling people while I was at work. I found 10 homes that looked good and the numbers were right he said to all of them no to much money but one which was the same as the others but I guess he liked it so we bought it.

It was a flip  I did all the work had to quit my day job working at the factory but had a lot of experience in construction about 15 years, was out of it for a year. I said to my wife I have to go into business again with construction she did n't like the idea because when we got married I was in business and not good with the paper work in the business such as contracts Exc. I said this business in real estate is going to take off this was in the 80's she said ok my partner said ok so off to the races I did all the  work again on the second home and no partner. I've delete with the mortgage companies, lawyers, realtors exc. Put it up for sale after 30 days of hard work to get it done. sold very fast 2 nd person that came by great. In the same time looking at other homes and my partner keeped saying no a year went by and in the mean time I had to do side work to keep the business moving and again people wanting extra work done on there homes and when it was time for paying they have no money so I'm paying Peter to pay Paul.

My wife is had it then I found a 2 family down the shore bought it , agian I did all the work. Found two more flips and did them to after 5 years we have only done 5 homes yep thats right only 5 had everything sold and had 260'000 dollars in the bank. We had an agreement that if we ever split up we would split the profits. I was alright with it but not really with all the hunting around for homes and getting shot down on some really good deals and all the work I had to do to buy and rehab and selling or deal with the renters. But he did put the money up big deal another BO BO If your partner doesn't work on anything in the part of the business guess what say good bye. You just don't make enough for your time.

1 Year goes by and I'm looking and he sayes no, what the hell is going on. I told him the home in freehold that I was bidding on I new the guy that was bidding against me on the home on burber street he got the place because we back out and he did what I was going to do to the place and his return was 50'000 dollars what the hell is the matter with you I want out give me what is owed to me I'm done.

He say hold on I have a friend for 30 years and bought some property in NY Port jervis area. Alright lets go look at the property so we did not so good, town was in trouble not much work going on. So I went up a few times to talk to people in Diners and at lumber yards and Realtors. Not so good didn't feel right to me.

This guy bought 3 acres in a flood area but this property didn't flood sat up high near the no sink river that goes threw there not the property. The property was about 10 blocks away. One lot was approved to build on. So I asked the realtor what type and how big of a home will sell quickly she told my a small cape 3 bedrooms only. So I picked one out threw 84 lumber they sold approved plans. Great stuff a whole book of homes different types of homes. Ranchs, Capes, Bi levels good stuff so I set up a meeting with my partner and his friend I have a lot of experience with building new homes did a lot of sub contracting from a builder for years no problem.

There was a lot of trees for lumber on the property I told them in the meeting and they said great we will split the profits on the wood. I said okay not thinking I would have to clean up the lots. Because this other partner we brought on to the business hires a lumber company that don't clean up after themselves BO BO again when I was up there I had found two companies with the same price each and would have cleaned the lots, what an idiot. He sad well my friend did it from up there I knew him about 10 years. You should of seen this guy holes in his cloths bad teeth he was skinny looked like he didn't eat much and smelled so bad when I was on the lots the birds were churpping he came and the birds left no lye.

So we have a meeting up in NY on the lots to pick out a home from the books from 84 lumber I had a nice Cape picked out and my partner agreed I couldn't believe it, He agreed on something I had said because he had no choose really I did all the home work. At the meeting this other partner brings a guy with him. He said to me this guy is a great carpenter so he sells himself to me and he lived right next door to the lots. I said okay I will hire him. They said no he wants to be a partner in my business by the way, I inc. the business I had because I had to much to loose if things went bad. I said no way I don't know you or what you can do, they said okay no deal so I got in my truck and my partner for 6 years says where are you going I said there is no way I am taking on another partner. I worked to hard to get where we are now and I did all the work with both of these businesses and I am not getting hook into this bullshit, look at where this guy lives he is 45 and lives in a trailer and look at his wife no teeth and he stinks of beer what are you crazy.

He said this is what we do let him work for you and we will decide if he will be worth it. I said I have to think about it. So went back to the meeting they said no, on the Cape they liked the 2800 square foot ranch with a basement. I looked at my partner and he agreed with them. I was walking away shaking my head and the so called carpenter said to me what the hell is your problem now. I turned around and said camly has any one here done any research on the area and what is selling right now he laughed and said I live here I know what sells and I said to him you have been talking to the realtors here, He said no but I know what people like around here. I said okay I shot him down. about being a partner in my business if I keep pushing this he just might pull a knive or something on me very strange and the other idiots were agreeing with him. I said I'm going home they said by and they stayed there having the meeting BO BO should always go with your gut I'm telling you, and you will find out if I still have your interest in this experience.

My phone rings at home now I told my wife what had happen with the meeting and she said don't do this I'm telling you don't. My partner for 6 years is on the phone he says can we meet, I said okay my wife says stick to your guns don't be stubid. I get to his home and he says to me what is your problem, I looked him and said what, I've been going up there now 4 weekends on my own because you would not take the ride with me, by the way it is 2 hour drive. I've done all the research on what sells with realtors and this woods man that has no life not working looking to be a partner in my business and telling me what sells in the area when all he does is stay home and drunk with his sorry looking wife that I don't know. What he said to me was stop Ed you are being crazy you don't know these people. Looks aren't everything right I said but look at the surroundings they are in. He said never mind that this is business. I said okay what did you guys come up with, he said the ranch three too one, I see and he will work for you and you decide if he can be a partner in your business. I said are we putting in a basement in a flood zone area even tho it is not a flood property but the lots around it is? I said and he said no what can we do and I said crawl space because if the water rises that high or higher I will install 2 pumps I didn't realize what I was saying I am getting sucked right in he said okay fine how do we start. Get permits get well location and septic on the lot located and the surrounding properties where there wells are and septics and get this approved. By the way I spoke to my lawyer we need paper work sign for this new partner of yours. He said draw it up okay. Okay I said

So I had the lawyer draw up the contract and gave it to my partner to give to him. I started to get the permit because I was the builder call the other guy for information because it is his property remember that. I called the other guy that lived up there and asked him to door knock and find out where everyones  septics and wells are. 2 weeks go by and nothing, call the guy no answer so I go up in 1 hour had everything I needed for the town and he was still not home.  Alright I should write a book on this experience I will make it short.

This guy that wanted to be my patner first day on the job I have a machine coming with an operator. My son is with me and this guy and his friend he wants me to hire they all look a lot a like, my son says to me he's 20 dad what a  crew we have here I said I know so I said I need some help laying this home out so this guy that is cooming to dig can get right at it, while I was saying this I turn around and they were not there I said to my son where the hell did they go, he said I don't know I was in the work trailer getting what we need I said to him well I guess it is you and me. We started staking out the home The machine is here we just got done and look here comes our crew kiddo, I guess they want to watch the machine he laughed my son. So as this job is going on I had to fire this guy that wanted to be a partner and his friend the other guy nevered showed up on time or not at all and this other guy that wanted to be my partner he had 3 discs taken out of his back and had pins in his back and could not read blue prints or pick lumber BYE BYE.

 I could go on but the ending of this project I built a home on someone elses property with no paper work signed. Thanks to my partner that didn't take care of it with his 30 year friend. They were not signed, While I was up there and went threw 10guys in 2 weeks framed it and got the windows and roof and siding on and left could not deal with my machine always something wrong with it gas line cut high drolic lines cut EXC. lumber missing I said I had enough in 6 weeks. Had the other  2 lots sold with homes. The one was a Bi level mother daughter and a cape on the other lot all mortgage approved had the paper work in hand. But no one wanted the ranch and still not sold yet and its been a year as of 6/28/06 is when I left. On the other lots that I had the property sold gave it to the other partner that came in on our company and he said to me we cannot do anything yet on the other lots, I didn't get approved to build on them yet. I called the town and they told me he did not subdivide the lots yet I said I had enough. Put a lein on the property to get back my 130'000 that I invested back but don't think I'll see it. The home is done but no one has bought it yet and the other lots the town will not sub divide it because of the flooding in the area the feds might come in and turn it into a park or the state.

So always go with your gut feeling and don't deal with flacky people that think they know everything when they don't have anything in writing of their knowledge. Today I still don't speak with my partner started a new business Creative Investments REI LLC and have my first home that will be another blog on this experience. Thanks and I hope you enjoyed reading I'm not a writer but I tried and I hope I was able to open your eyes on Partners and to watch your step it can be crazy.