In order for a partnership to be profitable, each person involved should possess a similar vision for the project while bringing a unique expertise to the table. Learn what to consider when contemplating partnering on your next rehab before you dive in.
1. Assemble the Right Team
A successful partnership starts with the right people. If both parties have the same skillsets or personality a large target is created on the overall weaknesses. Before jumping in, reflect on what the other person brings to the table, and if it will help you cover more aspects of the project. When considering people to partner with, find those who compliment your strengths and enhance your weaknesses. If you are a passive person, look for someone who isn’t afraid to push the project along to keep everyone on schedule. This will allow you to leverage your partnership for a smooth deal.
2. Define Your Roles
There are several details to sort out among your business partner; paying bills, pulling permits, overseeing contractors, etc. Make sure to clearly define in writing everyone’s duties in attempt to avoid discrepancies midway through the project. If you are creating an LLC, you will want to have an Operating Agreement drafted up to lay out the lines of the partnership.
3. Accountability and Supporting Your Partner
Have a system in place to measure each partner’s responsibilities so that everyone can be held accountable. Having and tracking measurable goals will motivate people to act on their task at hand while documenting any areas that are not being completed. With that being said, even though each person’s role is clearly defined, you never know what is going to happen. You need to be prepared to step into any aspect of the project at any time if extra support is needed. It’s just as important to support each other as it is to hold each other accountable for their share.
4. Communication and Manage Expectations
It may sound like common sense, but make sure that everyone involved constantly knows the latest updates regarding the project. Even though you may be in charge of a certain aspect of it, keeping everyone involved builds strong comradery and unity within the partnership. Once people begin to turn on each other, it is difficult to stop the partnership from internally combusting and becoming unstable. Having excellent communication allows both partners to feel valued and invested in the rehab.
Partnering with individuals who bring a vast amount of intellectual assets to the team but not enough capital? Hard money lending is the perfect solution to fix this void in the partnership. It is more important to find people who have knowledge/skillsets to contribute to the project. If neither partner has the financial backing to support the funds for the rehab, Washington Capital Partners can make sure that is not the reason you back away from an investment opportunity. Contact us today to apply for a loan!