Episode 20: Why Most Real Estate Partnerships Fail (And How to Make Yours Succeed)

Partnerships are one of the most common ways real estate businesses get started and one of the biggest reasons they fall apart. In this episode, Marcus Crigler breaks down why most partnerships fail, what causes the friction, and how you can protect yourself before emotions get involved.Marcus explains why partnerships often work during the startup phase but break down once the business grows, money increases, and each partner’s goals start going in different directions.If you are currently in a partnership, thinking about starting one, or trying to exit one, this episode is for you!You’ll Learn How To:Identify the early warning signs that a partnership is drifting apartStrengthen your operating agreement so it protects youDecide whether you should hire someone or make them a partnerCommunicate clearly so both sides walk away without destroying the businessWhat You’ll Learn in This Episode:(01:58) Most real estate businesses start as partnerships(02:46) The hidden reason good partners eventually grow apart(03:31) How a CPA sees partnership problems six months early(04:17) The poorly written operating agreements(04:47) What happens to money, leases, assets, and employees during a split(06:47) What should be inside a real operating agreement(07:34) How to avoid making your exit expensive and ugly(08:23) The truth about giving equity vs. hiring talent(10:06) Employees vs. partners: the cleanest way to grow your team(11:19) Where to start if you are trying to leave a partnership(12:51) Three scenarios Marcus sees most often and how to handle themWho This Episode Is For:Business partners who want to protect their relationship and their companyEntrepreneurs who are thinking about bringing on a partnerOperators who are stuck in a partnership that no longer worksFounders who want a clean, fair, and legally sound exit strategyWhy You Should Listen:A partnership can be the best thing you ever do or the most expensive mistake you ever make. If you want clarity and confidence in how you work with or separate from a partner, this episode is worth your time.Connect with Marcus Crigler:Website: https://beccfo.com/LinkedIn: https://www.linkedin.com/in/marcus-crigler-cpa-977a45b7 Facebook: https://facebook.com/marcus.crigler