There are many advantages to partnerships. Smart use of a partnership may allow you to do more deals from a financial and time standpoint. It also spreads out risk and liability. Its part of the “Two heads are better than one” or ‘There is safety in numbers” theories. However, approach a partnership with caution and due diligence, especially if you’re new at any type of business venture! If you pick the right partner it can feel like it was “heaven-sent” but if you pick the wrong partner or partners it can make the business venture a tough road to travel. Some if the disadvantages can be dissimilar work ethics and styles, honesty and trust issues, time consuming power struggles and poor communication styles.
When picking potential partners it is important to ask yourself a few questions and have some specific parameters in mind for the partnership:
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Attorney William ("Bill") Bronchick, the host of Legalwiz.com, has authored six best-selling books and is sought nationwide for his 30+ years of real estate and legal knowledge. He has been interviewed by numerous media outlets, such as CNBC, TIME Magazine, USA Today, Investor Business Daily, Forbes, and the LA Times, to name a few. William Bronchick is the co-founder and past President of the Colorado Association of Real Estate Investors and the President of the Colorado Landlords Association. Click on the "About" link above for more information on William Bronchick.