If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!

Jennie Brown talks about the partnering strategy she uses to make money from investing in properties.

How does one find a partner, be it a money partner, or a joint venture partner?

First of all, work out what it is that you want in a partner.  Is it experience, some sort of skill, such as a builder, money, or a profit share partner?  Be very clear on what it is that you are prepared to offer, and how far you are willing to negotiate with someone.

Put the word out there.  Let everyone know that you are looking for a partner.  Partners come in an amazing array of shapes and sizes, and it could be the person you least expect.  If you are looking for someone with a particular skill, then seek out people with those skills.

Also, let your investing “team” know – solicitors, architects, accountants, brokers, builders, tradespeople, agents.  Often these professions have access to a wide variety of people themselves.  They will probably have some idea of your project, and will be a good referral source for you.

Don’t be afraid to bring up the subject with people who ask you about investing in property.  There are a lot of people out there who would like to invest in property, but don’t have the time or skills to do it.  They are often the best partners.

Be patient.  It will take some time to lay the groundwork.

Use this time to prepare a proposal outlining all the details of the project.

On your first meeting with a potential partner, ask them what it is that they want.  You may have to explain a little about partnering to them.  Listen to what they say.  Does it line up with what you want to do?  If it doesn’t, walk away.  If it does appear to line up, let them know that you are interested in pursuing this further.  Make a time for a meeting with them where you will put forward your proposal.

Then, go away and write a proposal that meets all parties’ needs.  Be transparent.  Honesty is imperative – don’t start off a partnership right from the beginning with hidden agendas, or secrets.

Make sure that the potential partner has the ability and time to do due diligence on the deal.  This is their responsibility, but it is your responsibility to make sure that you encourage it, and give them the opportunity.  Remember, you know the deal intimately, they don’t.  Provide as much information as you possibly can.

Treat your potential partner with the utmost respect and courtesy.  Be confidential – they will most likely divulge personal information to you.  This is no one else’s business.

If you are trying to force the partnership, or finding that you are having to work hard on bringing the partnership together, be very careful.  If you are working this hard before a partnership, it is highly likely that the partner will always be hard work.  You don’t need the distractions of people who demand your time and take you away from your projects.

How do you keep a partner?  This is simple.  Do what you say you are going to do, always be on time, respect their contribution, and deliver more than you promise.

For more information on Partnering in Property Investing, check out our Free Report “Partnering Made Simple”.  It’s available at www.JennieBrown.com.au

Jennie also has a Home Study Course entitled “REAL Property Investing Strategies”.  This contains a full segment of detailed information on Partnering.  You can check it out at www.jenniebrown.com.au/products

To be notified of Jennie’s new blogs, sign up now at www.InvestingInProperties.com.au

Any partnership, no matter how small or large, and no matter who it is between, must have an agreement that covers the interest of both parties.

It is best to have a solicitor draw up an agreement for you.  When considering what needs to be in the agreement, work out the absolute worst case scenarios for all parties, and make sure those issues are covered.

Some partnerships are between friends or family.  Regardless, remember that your relationship with your partner may be in jeopardy if something goes wrong, so it is important to cover everything you possibly can in the agreement.

Here are some of the areas that need to be covered.

Firstly, the agreement needs to state clearly who is involved – this could be individuals, or entities such as trusts or companies.

Make sure the agreement is dated, and beginning and end dates are clearly stated.  If you are unsure of how long the partnership will take, cover this so that all partners are clear.

Remember that circumstances can change very quickly, so cover the possibility of someone needing to end the agreement quickly.  How will this happen, what period of notice needs to be given, how will the partner be compensated.

The agreement needs to clearly state the terms of the partnership.  If the partnership involves money, profit shares, bonuses or interest payments, make sure these are clearly stated with no room for misunderstanding.

You may be part of a partnership that involves something other than money – for example, knowledge, skills or time.  Again, make sure that the terms of this agreement is clearly stated.

The agreement is a legal document, and therefore must be executed in a legal format.  It will need to be witnessed and signed by all parties.  Depending on the law, you may need to have a Justice of the Peace certify the document, and, in some cases, you may need to lodge the documents with some authority.

Agreements also need to be in place for when the partnership is dissolved.  Make sure that all parties are released in writing from the partnership, and that all obligations of the partnership are met.  Have each party sign off on the partnership.

There are many other areas that could be added to an agreement.  The main consideration, however, is to make sure that you have covered all possible scenarios, and that you have a legal document drawn up for you covering all parties.

Part Four will give you tips on how to find partners, how to “sell” the partnership to potential partners, and how to achieve a win-win for all parties.  To receive Part Four and more information, sign up at www.InvestingInProperties.com.au