Happy New Year from the OakGrove team! As we all look into 2022 and chart our goals and aspirations for the coming year, we start to think about what we want to accomplish and WHO we want to accomplish our goals with. No one person is an island. Any audacious goal that we set for ourselves is going to involve the alignment with other people and leveraging others talents. These people can be employees, vendors, lenders, professionals, investors (limited partners), and/or general partners. What I want to focus on in this post is partnerships.
Partnerships, when structured correctly by your legal and accounting professionals can be an incredibly effective way to scale a real estate business or any business for that matter. Partnerships, in an ideal world, can leverage core competencies of its members and create an alignment of interests towards a common goal, while sharing in the risk and reward on a particular venture. For example, if you are a real estate developer or investor like OakGrove, you might be very good at finding new investment or development opportunities and raising the funds within which to take advantage of those opportunities, but you or your organization might be very lacking in the skill sets of project management and construction that is needed in order to successfully execute on a plan for that opportunity.
No one individual or organization is extremely good at everything and sometimes creating a formal partnership with someone who counterbalances your weaknesses can be very effective in lowering the risk of a given project and increase the probability of success. As an individual, I have created partnerships with several individuals and organizations throughout my years. Our company continues to create partnerships with investors, contractors, and even other development companies. Some of these partnerships have been huge successes. Some of them were successful but created a ton of heart break and brain damage in the process. Some have been absolute disasters.
What we have learned in this process is a few things that we hope that will help you in scaling your business through partnerships. For the purposes of this blog post, I define Partnership as a limited liability company between two or more members.
I hope this was helpful to you. We would love to hear your real estate or financial goals. Talking real estate and money is a passion of ours so if we can help in anyway, please don't hesitate to connect with us!
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