He has observed other cultures which have successfully embraced the partnership model more frequently than he sees in Canada.
Are Canadians simply more independent thinkers? Or does it speak to a lack of confidence in this form of ownership?
The potential obstacles
In my early twenties I purchased an equal interest in a recreational property with a couple of buddies. It was for personal use however we believed there was a good opportunity for capital gain based on the price we paid. There was no formal partnership agreement executed.
Within two years one of the partners decided to move due to a career opportunity and asked for a payout that far exceeded one third of the property value at the time.
We did somehow muddle our way through that difficult situation, but let’s just say that I did not come out of that partnership with a positive experience. Without a solid agreement in place we were setting ourselves up for failure.
Fortunately I did not let that event stop me from forming other business partnerships. Of course we can find stories of partnerships that have gone sideways but I see many more successful models than not.
A few decades have passed since that first experience.
I can now report having successfully experienced many fruitful, joint investment structures. A well thought out contract and third party management are keys to that success.
In an earlier post Five key benefits of commercial real eatate investing the benefits of commercial real estate investing are discussed.
As reported earlier this year, one major ongoing obstacle, especially for entry level investors, is the lack of supply of good quality assets.
Pooling equity can expand the number and quality of options. We are witnessing this with an increasing number of larger corporations expanding their reach through joint ventures.
Wherever you may be on the investment continuum, why not consider exploring this viable approach to assist with your retirement planning.
Posted by Barry Stuart