We’re often inclined to think that we can handle it all in our real estate businesses, especially in the early phases of the business. There are 7 key people that you need to have on your team… I realize it’s a balancing act because you’re often faced with balancing the financial aspects of a new business with finding the right people. However, the cost of NOT getting the right advice can be crippling.

My very first partnership was with a long time friend. We’d attended some workshops and trainings, asked an accountant and attorney we knew what we should set up for the business entity, and ultimately set up a basic corporation with an s-election. We weren’t real clear on what we needed it for and were primarily looking at the tax beneifts. Well, from a tax perspective, we did alright, I suppose. But, what we didn’t factor in was what was going to happen when we inevitably wanted to go in different directions.

We were warned by a good friend and mentor early on. He said, “Partnerships will only survive as long as both people need each other. Once either one is able to stand on his/her own, the partnership no longer works.” And we, of course, said, “Yeah, but we’re different.” Continue reading →