On my last blog, I mentioned involving family member for your capital at the beginning phase of your real estate venture.
I want to shed more light on that topic and tell you what you should know before involving your family with your real estate venture.
What is their vision?
Even if you are not involving someone from your family, it’s important to know their vision, this is a must.
It’s not necessary that you and your family members should have the same approach towards a problem. What’s important is your vision, your goal.
You should have one single destination where you’d reach together, whatever the path might be.
Do they have any idea of the neighborhood?
In real estate business, having proper knowledge of the neighborhood is a huge plus.
If your siblings or cousins or even your dad has experience with real estate in the past or if they have knowledge about the market of your neighborhood, they could be a valuable asset.
How can they amplify your strengths?
No matter what family member you are thinking of getting involved with in your real estate venture, you should know how they can amplify your strengths.
If they cannot increase the productivity and your efficiency with what you have, the partnership might not be as profitable as you would want.
So, the best thing to do will be finding someone who is an expert in your area or at least has some experience with what you are good at so that when you are not around, they can be a helping hand.
How can they help you (Apart from offering their money)?
Apart from amplifying what you,have your family member and soon to be partner should also offer something new to the table.
For example, let’s say you are good at market research. So, all the information about your neighborhood’s deals are on your desk.
But you would need someone to handle the other formal work. Now, if your family member has any type of experience at those other areas, it’ll be a huge plus for you.
Remember, a partner or an associate should not be appointed only because he/she is helping you with your investments. So, if you are appointing someone with you from your family, make sure their skill sets compliment yours.
Is your relation based on mutual trust & respect?
No matter what kind of business you are doing or what form of deal you have, without mutual respect and trust, you are not getting far.
Obviously, your family members are trustworthy to you and have enough love, affection, and respect towards you. But a professional relationship requires some other kind of mutual trust and respect. Make sure you have that covered.
Have you settled on the business terms?
Again, your family relations are very dissimilar to your business relationship. That’s why, like any professional person, make sure to finalize the terms on paper. This will ensure that the other person is feeling secure and protected in the deal.0