Basically, there are two options: direct collaboration and mediation.
Forming an Agreement about Disputes to Invest in Colorado Springs Before Partnerships Start
First and foremost, you must decide how you will resolve disputes. There is no right or wrong way to do this; however, time spent on this will save time down the road. Your agreement should cover issues such as Will your business have a partnership agreement (e.g., what happens if one of you wants out?) How can decisions be made? What happens if there are major disagreements? Can partners buy each others’ shares?
How Successful Investment Partnerships Work Together
Once you know how disputes will be handled and which legal structure for your investment company is right you can then proceed onto which dispute system will be best suited for your company’s legal entity structure.
Carefully consider the consequences of any investments made by your partnership. What is the worst that can happen? Plan for it and then continue on with the business without giving up hope. Investing in real estate requires a lot of work, but if you’re looking to build wealth together, investing in property may be one option worth considering for your retirement savings plan. Just like life itself, using care in planning, making good decisions and adjusting as needed along the way will help ensure success over time whether you are working alone or with someone else.
Failing to communicate business goals and expectations is a sign that you are missing the mark in an important relationship. An absence of communication can be disastrous for your business. If you have not specifically stated what’s expected from one another, then assumptions will take over, creating disagreements. Another helpful tip for circumventing disputes with investment partners in Colorado Springs would be to have a regularly scheduled listening session. You can also create a binder that stores your operating agreement as well as any other important papers. You can further strengthen both the investment partnership and its legal protection by obtaining a “certificate of acknowledgement” from the state in which you reside, stating that an LLC has been formed under the laws of this particular state. A certificate of acknowledgement is signed by a notary public when officially documenting an LLC. The purpose of the certificate is to establish record evidence for the existence of an LLC in your business filing location. Remember: In order for your LLC to be recognized legally, it must have its own specific name; neither “LLC” nor “limited liability company” will work on their own!
Investment partnerships are a great way to diversify your assets and grow investors in a business with an established niche. If you have experience with investment partnerships, or need advice on how to establish one, we encourage you to post a comment below.
If it feels as though a deeper issue exists within your business, you may want to consider whether or not the partnership is really an appropriate fit for your future goals. However, if your objectives align and you are able to reestablish trust in the partnership then there is no reason why things shouldn’t be back on track. In fact, talking with a mediator can help uncover areas of opportunity in an otherwise seemingly difficult situation. Perhaps this conflict has allowed you both to see each other’s perspectives more clearly and give better advice moving forward. If that is the case then good communication has led to a positive outcome!
If you’re prepared to invest with your partner, HBR Colorado can help! At HBR Colorado, our team makes it easy for real estate investment partners in Colorado Springs to find the best properties to get started! Send us a message or call HBR Colorado at 7192860053.