704: Creating a Network of Business Partners
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Welcome to Episode Four of season seven of the growing Empire Show. Today we're going to talk about building a network of business partners. So stay tuned.
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Welcome to growing empires hosted by real estate entrepreneur and trusted investment advisor Jennifer de Jesus. Growing Empires provides insight to building wealth through passive income producing real estate investments for those who want to build and manage a more profitable real estate portfolio.
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You're ready to start investing and you're looking to build a network of business partners? Where do you look and how to get started? Today, that's what we're going to cover. So I think it's important to point out that first, you've got to identify what you're looking for specifically. Because there are several different types of business partners. There are business partners that provide equity and cash to your deals. And they are more silent partners. There's equal partnerships where you both invest some sort of time and equity. And then there's business partners that just simply help you accomplish the things that you need to accomplish to be successful in investing, because that is their expertise versus yours. So for example, let's say we are going to invest ourselves using our own capital. We're not looking for additional business partners to add any equity or capital to the deals. And you just want to build a network of people around you that will help you be successful. Because they can help you tackle the pieces of the puzzle that you're going to need to be successful that are not your strong suit or your expertise. How that would look would be very similar to this. So you're the investor, it's all your money, all your risk. But you're going to need a business partner that is an accountant for all of your tax and preparation stuff, making sure that all your financials are strong, and you're making the right movements for tax reasons. You're going to need an attorney to give you legal advice. And to help you set up LLCs and different things like that maybe help you advise on deals that could be a little bit more complicated or difficult. You're going to need a network of vendors and property management teams, as well as real estate brokers and agents to help you find the deals. So that could be your network. We could be talking about something like that. And if that's what you're looking to do, how do you find something like that? Well, the most important thing is that referrals are a really great source of building this network. You want to talk to other people and get advice on who they're using or who they know that's in those industries that are super successful and what they do. And the easiest way to do that is to involve yourself in different types of social events, networking groups. Where people are likely investors outside of their day jobs. You can start by just one piece of the puzzle. So let's say you know, a really good attorney, and it's somebody that you've been working with for years. So maybe you're going to use that person for your investment properties. I would start there. I would ask the attorney, who do you know, that would be a great real estate broker? Who do you know, that could be a great accountant for something like this. They likely have some direction for you right out of the gate. Then what you're going to want to do is you're going to want to interview these people. You're going to want to verify that there are people that you can work with. That you share similar strategies and ideas about what investing really looks like. And you're going to build off of that network. So your attorney may link you to a great accountant, and your great accountant could link you to a real estate broker, a real estate broker could link you to a great property management expert. And it doesn't always have to flow in that specific order. But that is how you essentially build out your network of people that are successful in industries that you lack the experience in. And if you're going to go it alone, and you're going to invest by yourself, use your own capital and take your own risk, you're going to just want to make sure that the people that you are working with really are experts in their field. Google is a great source of information. If you are not local to that market, it may be a little bit more difficult for you to network with people. Because if they're not also investing in outside your area, they may not have the contacts. But it would be really beneficial if you start to involve yourself in networking groups that are online, social media forums and things that talk about investing. And it would also be very beneficial for you to start to use Google and reviews and stuff like that to help get to who you want to talk to. If we're talking about trying to figure out which property management company you want to implement into your strategy. As I talked about in a previous episode, there's several different types. You've got to first identify which type of management style is going to work for what you're trying to accomplish. And then I would suggest that you set out and do several interviews with them and try to find the right fit. So if you want to go to that Ala Carte mode that we talked about, find all the companies that do Ala Carte related services, and then interview all of them and figure out, you know, who fits the best for you. Don't forget to ask them for references to make sure that the people that they're working with their clients are really happy with their services. And make sure that, you know, you ask for proof of some of the things that they tell you, right. So if they tell you that they've got a great vacancy rate. How do they prove it? You know, if they tell you that they have a lot of experience with marketing and leasing properties. Okay, where's the proof to that? So just make sure that you don't always go based on what somebody is saying. Just like any interview, you want to make sure that you are going based on facts, and referrals, and listening to people that have had experiences that you're going to get into. And that will help you really pick the best set of business partners for you to go at this alone.
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The episode will continue in just a moment.
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Building your dream team must start with trust, which is the cornerstone of our approach and what allows us to deliver the results that we do, you need to trust your team. So they're empowered to bring their best and deliver the results you need to be successful. Your team is your true partner and your growth strategy and trusting their contributions and capabilities is what will free you up to focus on sustaining your growth. Whether you're an active investor or a passive investor, your dream team should be comprised of not just experiencing capabilities of people with heart you can trust as true partners. Wrong choices will cost you last time, money and most importantly, opportunities to capitalize and grow. I want to share my experiences with you and help you sidestep those risks when building your dream team. Let's get on a call and talk about your dream team so we can get you set up for success. Book a call with me today at growingempires.com and I will help you clarify what you need to build the perfect team for you.
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If you're looking for business partners that are going to invest capital into your deal, you're going to want to start to network with people that share similar interest to you, because that's how you're going to get people excited about investing with you. So you want to build your target list of investors. There's loads of places that you can find relevant investors. And before connecting with these investors, you're going to want to make sure that you have something of genuine value to offer them, okay. If you have zero experience, you've never done a deal before, and you're looking to find somebody that you don't know to invest with you. But you have nothing to offer no experience, no capital, really no knowledge. That's going to be troublesome. You're gonna have a really hard time. So you know, I suggest that even if you are brand new to this, and it is going to be a little tougher to get started, bring something of value. Figure out what that can be. Maybe you're really great at sourcing deals. So what you're bringing value to that organization, or to that partnership is the fact that you can source the deals. Maybe you don't have the capital, but you can source the deals. Or maybe you have the network of people that could be beneficial to this business partnership, or the organization that you're creating. And that's what you're bringing to the table. So figure out which piece of that is what you're actually offering. And then you're going to want to connect with people that need that piece of it, right. So I've always found that everybody excels in a specific area, not always all the same. So you either really have the capital, and that's part of your strong suit, or you're really good at sourcing deals, or you have the network of people to be successful. So whichever bucket you find yourself in, then what you want to do is network with people that don't have that piece of it. Because that's what you're bringing value to the organization or to the partnership. And if you're looking to build a partnership of people that you're going to invest, say, 50/50 with, then you're going to want to do a couple of things like. Number one, identify the right candidates for your partnership. And they need to have a business strategy that matches your expectations. So you need to know what your expectations are for the partnership. You want to then develop the relationship with these potential other investors. You want to figure out a way where you're each going to add some value to the partnership, and what you're both going to receive in return as a reward from that partnership. The other piece of the puzzle that I would suggest is just make sure that you always document everything. Make sure that you document, document, document. No partnership can sustain just a handshake. You want to make sure that you clearly identify each partners roles and responsibilities in your organization or in your partnership. You want to identify what your business structure is. What are you going to actually invest in? Where are you going to get the capital from? Who are you going to use as your business partners to make sure that you're successful in your endeavors? And then once you do that, you want to put everything in writing and you want to use legal teams to do this. You want to make sure that both partners are protected in this and you want to make sure that you have a good strategy for both partners. Be honest with each other. Make sure that you both have the same goals in mind. Make sure that your timelines are consistent with each other. So that you know you don't find yourself a year into that partnership and somebody needs to cash out. Because that could become really complicated. So make sure that you, you know, clearly identify what everybody's roles and responsibilities are going to be. Select the right type of business partnership or arrangement, the structure of your business, how are you going to operate? What are you going to invest in? How are you going to go about finding those deals? Put everything in writing, and then again, just kind of be honest with each other. And make sure that your goals that you're setting out for align with each individual person's personal goals. Make sure that you have an exit strategy on your partnership, so that if any one person has to get out, it doesn't make the partnership collapse. And make sure that you're choosing a partner that has complimentary skills to you. You know, again, we talked about in different partnerships, everybody usually excels in one area. So if you're really good at sourcing the deals, you may not be really good at networking with the people that are going to help you be successful and vice versa. So just make sure that you're choosing people to partner with that will complement your skills. And you're going to find that if you share the same values, your partnership is going to be super successful, and you're going to grow together you're going to invest together and then maybe down the line you'll be bringing on other investors and other partners into your organization. I hope you got a lot out of today's show, and whichever network of business partners you choose to create. I hope that you're super successful in building that network. And I hope it's something that you can sustain long term. Until next time, take care.
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For more information about how Jennifer can help you plan, develop and manage a strong real estate investment portfolio, visit growingempires.com