100% agree with your message. This is the first time I've felt compelled in a really long time to respond and comment. Anytime you can AVOID partnerships is good. I learned the hard way...twice.
ONE partnership that is not really official and certainly not on paper has worked over the years to benefit us both and that is in the writing side of my life. She does the graphic work and I do the writing work. We split 50/50 and there have never been issues. But we file our own separate taxes because this is actually a sole proprietorship. I get tax benefits because I pay her as a contractor, so there's that! It is agreeable to us both. I don't do much with her these days because I took a long break from the big book-writing gigs. Until last year I was still taking ghostwriting jobs. But two problematic, pesky, incredibly needy clients changed my mind finally and fully. I do not need that hassle.
At the same time I was in a very official on-paper-and-all partnership in a real estate deal. We held in common one high-ticket property that I found, I rehabbed mostly on my own and by hiring the teams. This "partner" stayed home for the most part in another state where he was supposed to get control of another property that he would run. What I didn't see coming is that he was crap as closing. He repelled people, which brings to question what did I see in this guy, right? I thought he'd be way better at the math, which is an area I had to improve on greatly and have since. This guy dug in like a tick on a Tennessee hound dog.
The "partner" was getting at the very least $1000 a month for doing fuck all. I ran property management, dealt with the vacation renters at first and then the sober living group renters later when the HOA shut our vacation gig down. I handled all the fun stuff like getting a crew in for the slab leak, negotiating terms with vendors and fools, etc. The partner paid four bills a month and provided me with spotty spreadsheets. That finally came to its natural end in July this year. And dear God it cost me. I paid the investor off from borrowed funds. I'm okay at raising capital when truly needed.
One would think I had learned my lesson, but doing Amazon FBA I knew the only way to bump up the income would be to bump up the buys. I needed cash for that. So after a year of a friend bugging me to help, I said yes. NOTHING ON PAPER AND THIS IS NOT OFFICIAL. Based on trust, which is actually risky for him.
We are using his credit. And I just told him this ends now. It is simply stupid. I'm doing 90% of the work (being generous here) and I pay him back every penny for the credit card purchases. Then I split with him 50/50. I do the work and he gets his money back ++++. Why would I do that? Because years ago he backed a vacation rental property that did really well until all the rules changed. When that house went away, he had lost $9000. Well, me too really. I was still paying back the debt for the rehab for more than a year after.
Now this "partner" wants only to make up his losses. Because I like him enough as a human, I agreed. But in retrospect, that was then and this is now. We had a contract. He was an EQUITY partner in that property deal. Which means if I do well, he does well. If I sink, he sinks. We walk away. But instead of being a shit about the legal side of the fence I said fine. We'll do this till spring of 2021. But honestly I am already done with it. It's a lot of work when doing big buys and processing them on your own. It's my Amazon account. Therefore, I take the hits. I also pay ALL taxes at the end of the year. I figure by this point, or at least once he is paid back in full, we are freaking even.
LESSON: I will never take on a partner again in my lifetime.
Hey, it's just life. IF we learn from our mistakes we can keep going, pivot and make needed changes. This is a business in which you require no partners. You need a team you can trust once you get big enough. But at my level I surely do not. And I am not aiming to earn millions these days. That was once my goal. Now at at the downsizing and trying to enjoy (for real) more of my life. And the people in it.
AMEN to your message Kale. God is good all the time. Please send more videos like this which shows your passion and why believing in God is important. LOVE YA!!! Later Gator!
Thank You Kale for the heads up. I know your right . I thought about having a business partner. I could really use the help. So now I changed my mind somewhat. I don't know anyone the would jump in front of a gun for me. It's better to be safe than sorry. Thanks for your addvise.
Do not take a partner. You do NOT need one. Usually we take a partner when we feel we are weak in an area. I promise you can find a person you can pay to take up the slack. Is it math? Hire a bookkeeper. Is it communications? So many options there and they won't break the bank. Is it admin tasks? Hire a virtual assistant. I have one. Very Americanized. She is AWESOME. I'll give you here info if you want. She is in South America and has learned how to build funnels, run email campaigns and do the simple stuff. I don't use her often, but she has never ever disappointed. My point is that we don't need partners; we need teams.
There is defiantly an esoteric side of the story. Universe works towards you, if you allow it to happen :-)
Yup!
100% agree with your message. This is the first time I've felt compelled in a really long time to respond and comment. Anytime you can AVOID partnerships is good. I learned the hard way...twice.
ONE partnership that is not really official and certainly not on paper has worked over the years to benefit us both and that is in the writing side of my life. She does the graphic work and I do the writing work. We split 50/50 and there have never been issues. But we file our own separate taxes because this is actually a sole proprietorship. I get tax benefits because I pay her as a contractor, so there's that! It is agreeable to us both. I don't do much with her these days because I took a long break from the big book-writing gigs. Until last year I was still taking ghostwriting jobs. But two problematic, pesky, incredibly needy clients changed my mind finally and fully. I do not need that hassle.
At the same time I was in a very official on-paper-and-all partnership in a real estate deal. We held in common one high-ticket property that I found, I rehabbed mostly on my own and by hiring the teams. This "partner" stayed home for the most part in another state where he was supposed to get control of another property that he would run. What I didn't see coming is that he was crap as closing. He repelled people, which brings to question what did I see in this guy, right? I thought he'd be way better at the math, which is an area I had to improve on greatly and have since. This guy dug in like a tick on a Tennessee hound dog.
The "partner" was getting at the very least $1000 a month for doing fuck all. I ran property management, dealt with the vacation renters at first and then the sober living group renters later when the HOA shut our vacation gig down. I handled all the fun stuff like getting a crew in for the slab leak, negotiating terms with vendors and fools, etc. The partner paid four bills a month and provided me with spotty spreadsheets. That finally came to its natural end in July this year. And dear God it cost me. I paid the investor off from borrowed funds. I'm okay at raising capital when truly needed.
One would think I had learned my lesson, but doing Amazon FBA I knew the only way to bump up the income would be to bump up the buys. I needed cash for that. So after a year of a friend bugging me to help, I said yes. NOTHING ON PAPER AND THIS IS NOT OFFICIAL. Based on trust, which is actually risky for him.
We are using his credit. And I just told him this ends now. It is simply stupid. I'm doing 90% of the work (being generous here) and I pay him back every penny for the credit card purchases. Then I split with him 50/50. I do the work and he gets his money back ++++. Why would I do that? Because years ago he backed a vacation rental property that did really well until all the rules changed. When that house went away, he had lost $9000. Well, me too really. I was still paying back the debt for the rehab for more than a year after.
Now this "partner" wants only to make up his losses. Because I like him enough as a human, I agreed. But in retrospect, that was then and this is now. We had a contract. He was an EQUITY partner in that property deal. Which means if I do well, he does well. If I sink, he sinks. We walk away. But instead of being a shit about the legal side of the fence I said fine. We'll do this till spring of 2021. But honestly I am already done with it. It's a lot of work when doing big buys and processing them on your own. It's my Amazon account. Therefore, I take the hits. I also pay ALL taxes at the end of the year. I figure by this point, or at least once he is paid back in full, we are freaking even.
LESSON: I will never take on a partner again in my lifetime.
WOW. Thank you for the detailed response. I am sorry that this happened to you. You are amazing.
Hey, it's just life. IF we learn from our mistakes we can keep going, pivot and make needed changes. This is a business in which you require no partners. You need a team you can trust once you get big enough. But at my level I surely do not. And I am not aiming to earn millions these days. That was once my goal. Now at at the downsizing and trying to enjoy (for real) more of my life. And the people in it.
AMEN to your message Kale. God is good all the time. Please send more videos like this which shows your passion and why believing in God is important. LOVE YA!!! Later Gator!
AMEN! LOVE YA!
Thank You Kale for the heads up. I know your right . I thought about having a business partner. I could really use the help. So now I changed my mind somewhat. I don't know anyone the would jump in front of a gun for me. It's better to be safe than sorry. Thanks for your addvise.
Love you Adrienne
Aww love you too Adrienne glad I could help!
Do not take a partner. You do NOT need one. Usually we take a partner when we feel we are weak in an area. I promise you can find a person you can pay to take up the slack. Is it math? Hire a bookkeeper. Is it communications? So many options there and they won't break the bank. Is it admin tasks? Hire a virtual assistant. I have one. Very Americanized. She is AWESOME. I'll give you here info if you want. She is in South America and has learned how to build funnels, run email campaigns and do the simple stuff. I don't use her often, but she has never ever disappointed. My point is that we don't need partners; we need teams.