|
Prev Blog << |
Partnerships Gone Wrong...Your Advice??? |
Next Blog >> |
![]() |
Category: Current Grade: A Total Views: 298 Member Comments: 3 |
Posted on: 03/09/2009 Posted by: Christine of NJ Property Solutions Blog Points: 105 View all blogs >> |
I'm happily working with 2 partners right now. When I signed our (extensive) partnering agreeement, I felt like we had covered all of our bases. Now, a variable has been thrown in that I hadn't anticipated, and I want to amend our partnership agreement. Being somewhat new, I don't know every possible thing that could go wrong, in order to add rules to our contract to deal with those circumstances. What are some things that could go wrong? What are you experiences?
Here is my situation to make things more clear:
I have a FT job and have two self-employed partners that are wholesalers fulltime. They created and are paid by their LLC. They wanted to partner with me because of 1. my long list of contacts, 2. the fact that we are advertising in the same towns, 3. we're using the same approaches that we learned from our real estate investor classes together, 4. the 3 of us have different personalities and strengths, and 5. to have another person spending hours and hours doing things they don't have time to do.
My role: I go door-knocking, go to auctions and real estate events to find new buyers and sellers, search for real estate events that we might all go to together, call to check on the status of shortsales, help with bandit signs, help look for and track houses to market to, etc.
They: Negotiate loan mods, short sales, and get people signed up for credit restoration through a company they use, etc (things I can't do 9-6 b/c of my job). We don't hold anything, btw. We tie up deals, do short sells, and sell to investors (and do credit repair on the side).
Now, one partner wants to add a 4th partner. She has nothing to bring to the table other than the fact that she's smart and ambitious. One of my partners wants to pay to educate her out of the company. I don't want to add anyone else. Advice???


If both of your other partners want to work with her, have them set up their own 3 person partnership separate from your 3 person partnership.
Agreed, I like deal-by-deal. And my wife too is my only long term partner.
Hello Bird_Dog_Millionaire. First of all, it seems that you are doing all of the grunt work - you are feeding your partners. If you did not do what you are doing, would they be as successful as they are on their own? With what you seem to know and/or have done, you should have the upper hand in your partnerships. If they add someone, you can easily walk and partner-up with someone else and be even more successful. My other point is partnerships. I've had only one successful long-term partner, and that is my wife. I've had business partners - formally and informally - in the past and they didn't work out. What works out is a partnership on a deal-by-deal basis. You are free to shop your deals around and find people willing to be more cooperative and even help you be more successful so you can quit that FT job. On a deal-by-deal basis partnership you are only linked by the one piece of property. I'm not sure if this is the advice you're seeking, I think it's probably time you expanded your efforts into entertaining different real estate partners.