Jul 19, 2005

Well, we pitched an offer on the apartment complex and one of his duplexes. He took it… Now, that sounds like a good thing except now we have to convince a bank that we can make the payments. Since the building has 9/12 apartments rented, I think it’s a sure deal. But, we’ll see what the bank says. I’ll be tied up the next couple of weeks trying to sweet talk banks, boasting about my past accomplishments, and gathering random statistics (banks find statistics interesting).

To get the bank on my side, I’m going to have to establish a partner that has credibility or a relationship with the bank. Since Sam showed me the property and we’ve been looking for a project we would both enjoy, I thought it would be a good starter. In general partnerships are really inefficient and generally rob you of your hard-earned money. But, sometimes you can’t do everything yourself.

It’s all about “resources”. To accomplish anything you need resources. Resources could be time, people, an extra hand, etc. If you have everything you need, why establish a partnership? Money is a substitute for almost all resources (money is also a resource itself). If you need extra people, you can pay someone to help you… no need for a partnership. In general, your only partner should be the partner that provides you money… which in most cases is the bank. Or, if you need a partner because the bank wants more people to kill if you don’t pay them.

Do you have a great idea? Go to the bank and get a bunch of money. Then, pay someone to work with you. You don’t have to convince them that the idea will work. You don’t have to consider their thoughts when you want to make an aggressive decision.

PS… I’m glad I have great partnerships that do nothing but help me!