Forming An Acquisition Team
I just stumbled onto this website and am quite intrigued so far. How does one go about forming teams for investing? Since I have never done this sort of thing I would prefer to be part of a team. I live in an area where properties are snatched up quickly so I need help.
the biggest problem I have run into, is how do you "trust" these partners you meet cold turkey.
They also are potential security law issues.
If you work with others you REALLY need to be on the same page & trust each other completely. I have a partner that I did our very first deal with on a handshake. That's because we're of like mind & high integrity. If you don't already know that type of person/people, create joint ventures/splits when appropriate.
I agree with the like minds/high integrity comment. The next thing you need to work on is figuring out what assets/strengths you bring to the table and what weaknesses you need to compensate for. Try to bring in partners/team members who are strong where you are weak and viceversa.
I think it is very important whatever you do is to get it in writing. If something goes wrong with your partnership for any reason it is spelled out in the joint venture agreement what both parties are to do.
Thanks everyone...I do prefer to work with persons of high integrity to be sure but it is still good to get it in writing because if things go wrong people can change and it would be better for the long term relationship to have everything spelled out so there are no misunderstandings. As I learn more I will be able to identify my strengths and weaknesses as they relate to REI and look for people who are complimentary. Thanks again.
Just wanted to mention here also that I went into a deal with a partner who was a good friend and we had an agreement to buy a house together and fix it up an sell it. We made a verbal agreement at first but as things started to progress and I found myself doing more and more of the work, it became clear to me that we had to get some kind of written agreement. What may seem good at first may be good in the end but if things start ot get messy you will be protected. Also get the agreement up front. When It gets time for payday then if it is spelled out in the agreement each person will know who gets what and there will be no disputes.
All good suggestions.
One other perspective...
The dream team can and will include suppliers (title company, etc). Not everyone needs to be a partner.
When dealing with a partner assume the worst about the future. I do not mean assume the worst about the person. Just assume the proverbial bus comes calling and someone dies (hit by a bus).
Estate issues kick in. Someone who is a complete stranger is the replacement partner. They might have to get things approved by a court before deciding.
Consider how one exits and if you want extra protections like insurance to buy out someone's interest.
John
[addsig]
I have found that the best team partner is your spouse.
I have gone into deals with friends and relatives even with a written - and after we have acquired the property together they want all their money out of it or they want to split the deal and leave me with the mortgage and they take their half of the houses free and clear.
Today after years of trial and error, my Team consists of 3 trusted real estate attorneys, two title Insurance companies (Chicago and Stewart), this sight and a few others and LOTS of BOOKs for reference.
I still don't pretend to know everything - so I ask my mentors and get my questions answered professionaly.[ Edited by Dilbert98 on Date 06/14/2004 ]
I am forming an acquisition team(s) in New Jersey. Perhaps more appropriately called an acquisition machine for preforeclosure, preforeclosure short sale, and REO opportunities. Included will be about 5 or 6 individuals with a particular skill or resource that would complement the group. I'll let you know how it works out...
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Short Sale Practitioners can't predict, or guarantee results... but can take steps to insure the likelihood for success....[ Edited by TheShortSalePro on Date 06/16/2004 ]