Sometimes the best way to achieve your property goals is to work with others who share a collective vision via a joint venture. Setting up your own property collective could mean you buy property sooner than you could by yourself, create a larger property portfolio than you could on your own, reduce the amount of money you need to purchase and hold property and free up more of your own cash so you can live a more sustainable lifestyle.
However possibly the trickiest part of putting together your own syndicate or joint venture project is finding the right partners.
Most people have a few friends or family members in their circle that might have the traits of a potential business partner. But how can you know that they are the right person? This piece from Harvard Business Review called “How to pick a co-founder” asserts there are 10 things you should look for. It resonated with me, as the 10 principles listed are just as relevant for entrepreneurs looking for a partner for their start-up, as they are for investors looking for a partner for their joint venture or syndicate.
The ten things to look for are:
- A complementary temperament – find someone who will fill in the gaps around your personality strengths. The trick with this of course, is to first fully understand your own strengths. Sometimes easier said than done! One of the best books I’ve read on finding your strengths is Now Discover Your Strengths by Marcus Buckingham. Buckingham’s book asserts that it is hard for people to uncover their talents because they are so innate that we take them for granted. We don’t see them as strengths because we just do things this way. The book and follow up editions include a StrengthsFinder online assessment that helps you to discover your top five talents from 34 different strengths that Buckingham and his team of researchers identified. Brilliant.
- Different operational skills – find someone whose skills complement yours rather than replicate yours
- Similar work habits – have a shared view as to how much you will work to achieve your goals
- Self-sufficiency – someone who functions on auto-pilot with virtually no input from you
- A history of working together – familiarity helps conversations move quickly and allows trustworthy cooperation
- Emotional buoyancy – the capacity to support each other during the highs & lows
- Total honesty – you and your partner must be committed to telling each other the truth all the time, even if it’s tough to say or hear
- Comfort in his/her own skin – someone who knows themselves well and are comfortable in their own skins
- A personality you like – if you don’t like your partner, all the other great qualities they possesses won’t be enough to sustain you through the long haul
- The same overall vision – it is essential that your partner’s main motivations for joining your venture include a passion for the project you are pursuing. Perhaps this should be #1…
Tim Riley is the principal of Property Collectives. Property Collectives helps groups of friends and family invest in & develop property together by sharing their money, time, skills and knowledge. To find out more visit www.propertycollectives.com.au