If your potential RE investment includes having a partner, use due diligence on them too. You might be in the deal for 5 years with them. Are you sure they're going to keep the terms of your agreement for all that time? Do your personalities match up well enough so that if something goes sideways you'll both agree to stay the course?
Do you know them well enough?
I suggest you get to know them socially. See how they do life outside of business. Ask them if they will agree to have a criminal record check done, of course you'll have to do it yourself if they ask. Have a look inside their car and their house. Offer to do the same. Will they do what they say they'll do?
What have they been up to?
Some people have a public persona (whether they know it or not). Type their name (in quotes) into a google search and look closely at what comes up. Check if they have a Facebook, LinkedIn, Google+ or whatever account. It's fun to see what people do online these days. Oh by the way, check yourself too.
What's their track record?
Have they done this kind of transaction before? Is there anyone who can vouch for their performance in business? How's their work record? If the deal needs more money injected, are they ready to help out?
Are they going to be around for the whole project?
If you look at the big picture, what are the prospects for these potential partners in the near and far future? Are they steadily employed?
It's inconvenient and intrusive to do the above. If you've got $50k on the line in your deal, it's probably worth it IMO.
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