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First-time Property Investors: Picking the Right Partner is Vital
Property collectives are not new in the Australian property market. Property partnerships are an excellent way for first time buyers who don’t have quite enough capital, to form a long term relationship with someone else when investing in rental property. Finding the right person might seem a little daunting at first, but with a little forethought you will be able to avoid most pitfalls. Baxton Property Management in Hobart put together some tips gained from their experience managing $1billion in property for investors.
Any new venture is intimidating, but also very exciting. The thought of forming a lucrative, long term friendship with a partner can also be very heady. Just remember to do your homework, and keep your feet on the ground. That way the chances are excellent that your venture will succeed.
So how exactly do I find the right partner?
Personal Networks: By having a clear vision of what you want to achieve, and expressing that succinctly to your family, friends and associates, you are, in effect, networking. Your commitment will attract like-minded people. Membership of local business chambers, sports clubs and the like, are fertile ground for networking. And the funny thing is, the more you do it, the easier it becomes. Once your first project has been completed, you will have a history that potential investors can check. This builds confidence in potential partners.
With the incredible ease and amazing versatility of modern digital technology, it is very easy to establish a social media platform. Websites are also very simple to setup these days, and sites like Facebook, LinkedIn, Twitter or Google+ allow you to build communities with people that share your vision.
When I’ve found a partner, how do I know it’s the right one?
Right, so you’ve found a few good prospective partners. How do you choose the right one? Here are a few suggestions for a checklist to help you choose:
Complementary not Supplementary: Look for someone who complements your strengths with different strengths of their own. It doesn’t pay to have both partners with similar strengths. It’s the same when it comes to skills: Choose someone who complements your skill set, not someone who has similar ones. After all, if you both can do the same things, who is going to do the things you can’t do?
Similar Work Ethic and Self-sufficiency: This is where you should look for someone similar to yourself. Are you both willing to work the same amount to achieve your goals? If the project is merely a hobby for a partner, and, for you it’s the difference between wants and needs, then the two of you should not work together. Your partner also needs to be someone that can work on their own, and doesn’t need constant re-assurance.
Compatibility: No matter how much you appreciate his or her skills, if you don’t get on with your partner, things will get difficult in the long haul. Your partner must also have a history of being able to work with other people, and to be emotionally mature. There are going to be ups and downs in any joint venture, and the last thing you need is a partner that throws tantrums or mopes.
Financial Stability: Your partner must be able to fulfil his or her financial commitment to the project and be able to deliver what was promised financially. Truthfulness between partners is also critical, at all times, no matter how difficult it is to say or hear.
You are about to embark on a very exciting adventure. Picking the right partner to accompany you on that adventure is very important. Remember to do your research, and, above all, be patient. The right partner will come along. Don’t short-change yourself by being hasty. We at Baxton Property Management wish you well, and are standing by to manage your investment property effectively, once you are the proud owner. Visit us at our website for more informative blogs and news.
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We hope you enjoyed this article
The information contained in this article is based on the authors opinion only and is of a general nature which is not indicative of future results or events and does not consider your personal situation or particular needs. Professional advice should always be sought relevant to your circumstances.
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