Welcome to Part 11 in our 12-part series entitled “12 Warning Signs You’re Headed for a Lawsuit with Your Partner”. If you missed Parts 1-10, click here to get to our Real Estate Investor bLAWg where you can find those and many other informative blog posts. The eleventh warning sign is …
#11: No “Glue”
When I say “glue”, I’m referring to something that’s strong enough to hold your partnership together. For example, if one of you brings most of the money to the deal and the other is the person who does more of the work (the “sweat equity” partner), that’s the glue that holds you together—you each bring something that the other needs to make the deal successful. If each partner’s expectations have been properly and accurately managed and if, during the partnership term, each partner meets or exceeds those expectations, the “glue” should “hold” the partnership together. However, if at any point during the partnership one partner believes, rightly or wrongly, that they do not need the other partner, the partnership may be on thin ice. It is rarely too late to add glue to the relationship. Evaluate what you have provided and continue to offer.
Solution: Be a great partner. Blow your partner away with the value you bring to the table, and that should provide the “glue” to keep your partnership on solid ground.
If you are entering a partner or joint venture relationship of any kind, whether it is an LLC, corporation, general or limited partnership, call us. We can set it up to minimize the risk of future disputes. If you are having challenges with a current partner, call us. We may be able to help you resolve your dispute and avoid a lawsuit. If litigation with your partner is inevitable, we can handle that as well. If you’re not sure if your agreement is properly drafted to minimize your risks of future dispute and/or to adequately protect you in the event of a future disagreement, call or e-mail us to learn about our special “Partnership Agreement Audit” offer. For more information, call Jeff Lerman at 415-454-0455 x234 or e-mail him at [email protected]