3. Be Fair It’s not always easy coming up with $20,000, $30,000 or more for a down payment on a property. And, although we are millionaires on paper, that doesn’t mean we always have chunks of cash lying around ready for the next super property deal. But because we have a few partners that almost always have money sitting around, and because they’ve made great money with us in the past and they trust us to make good decisions, they are always willing to consider new deals from us. And, they selectively tell their friends. Because, what you’ll find, is that people with money, often have friends with money. Over time, you can find yourself with a really solid group of people willing to provide the down payment for future deals. Just because someone is waving a stack of $100 bills in your face, doesn’t mean you should throw them on the first deal that comes your way. The secret to long term and high quality partnerships is to spend your partners money even more frugally than you would spend your own. This means you NEVER put someone else’s money into a deal you wouldn’t put your own money into. You NEVER take a cut that is unreasonable for the amount of work you’re doing relative to the amount of money they are putting in, and you NEVER make major decisions without consulting your partners.
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Find an Article by Julie Broad in the September 2010 Issue of Canadian Real Estate Magazine
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Burnaby, BC, Canada
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