Creating a successful venture in real estate involves things you definitely want to avoid, and things you should do, because they are sound principles of investment property and businesses. First, the things we want to avoid.

Definitely avoid the next Killers Association:

Do not choose the wrong partner.

This is the biggest mistake the partners. It is the murderer more large as it is or could have been a great partnership of real estate. Killer Association profiles include:

1. Someone who has a pattern of dishonesty, which may be subtle, but could include inaccuracies little, little white lies about many aspects of business and life. Many good people to do due diligence on a potential partner, and then are surprised to find your partner lacking integrity and lying about many things. You have to dig here to find out if the person has integrity. A sign is not very large if not completely answer your test questions in their own business affairs and financial history. A partner is not clear to you is a dangerous murderer and association.
2. Someone who is dysfunctional in areas important in a building of successful joint ventures. You must be a student of human behavior to some extent, to choose the right partner, or to prevent the election of the wrong partner. That is the case of being able to recognize that someone is not what they seem, or have another personality that I want to deal with. But you can not go by instinct immature. Hunches are useful only if there is a level of maturity in understanding human behavior.
3. Someone who has nothing to contribute to the association.
4. Someone who is lazy and does not contribute.
5. Someone who is too busy with a million other things and never really have time to contribute his association.
6. Someone with too much luggage, which might be too much financial disaster that is dragging him into the pit of despair or with many of his troubled business, ie creditors and judgments recorded, and even serious relationship issues in front of his house.

Now, let's look at this from another perspective, things I want to do. This begins with:

Choosing the right partner.

1. You want someone who is honest and has integrity. That is really no small challenge in this day and age. A survey made a couple of years indicated that 50% of all people in American society that regularly admit lying.
2. You do not need someone who is perfect. There is no person on this earth. You want honesty, not perfection.
3. Past failures are ok, provided that this person brings valuable contributions to the association.
4. Your partners should be people you respect and admire.
5. Each partner should be someone with whom you have a soulmate. Obviously, it is necessary to know someone before jumping to a partnership with them.

The company profiles powerful and successful combination:

1. A joint venture of major general, will consist of 4 to 6 people (could be more, but the dynamics of changes in the selection of partners), with each bringing with them valuable knowledge and experience in business, and
2. That knowledge and experience involves an aspect of real property or business is important to the specific purposes of their business, and
3. Each of the members are pre-qualified by the above criteria.

The Purpose of the Joint Venture:

Knowledge and experience of people that will be placed in the association depend on the purpose of your business. For example, If your association is developing raw property for sale to developers or other buyers, you would like credentials like these, although this is not all-Nclusive:

Development Property for Sale in the rough:

1. An excavator who has enough experience to do the ground work;
2. A engineer or surveyor with experience enough to do all the engineering and surveying work needed to Platting;
3. Another engineer, if not the same, you can do all platforms of writing and presentation to the city or county;
4. A man of public services, if the excavator does not have the experience, that you can install utilities and code correctly (power, sewer, cable, phone);
5. A company asphalt can be poured beautiful roads throughout the project;
6. A real estate lawyer who knows real estate and all contracts and negotiations concerned;
7. A real estate agent who can sell the lots to builders or individuals, and
8. A person or people with financial resources, both cash as credit.

Buy Single Family Housing for rent or resale: Here I want to partner with different credentials, but still pre-qualification with the basics above.

1. An inspector or experienced builder who knows how to inspect;
2. An experienced contractor builder who can do a great job of rehabilitation;
3. A real estate attorney who knows real estate and all contracts and negotiations concerned;
4. A Realtor who can buy and sell to the partnership;
5. A person or people with financial resources, both cash and credit.

CONCLUSION:

It is difficult to establish these principles and rules, and expect a group of people could only do so without years of experience in the successful partnerships and investment real estate. It is essential that the draft partnership agreement very good state clearly all the rights and obligations of each partner and how each part in the rewards. You must have an exit strategy, both for the success and failure. You need a good business plan writing and
well planned spreadsheets (three, one for the best one for the worst, and one for the most likely scenario). Someone has to be good in conducting association meetings, dealing with conflicts among partners, and troubleshooting.

Doing these things and you have a powerful risk and overall success in real estate, and you will make a lot of money over the next five years.

Chuck practiced real estate law for 20 years before coming back to his first love, real estate sales and transactions. He practices on the beautiful Olympic Peninsula in Washington.

USSA United Socialist States of America February, 2009

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