“I have a great deal!” Words too often said at networking functions, business conferences, charity galas, and just about anywhere there are people with funds to invest. To most people with the means to invest, it becomes an automatic turnoff. All that one hears is, “I want to pitch you something.” Those words are a tell-tale sign that you are dealing with an unseasoned investor that isn’t ready to handle a partnership… or what we will call in this article the “Poor Partner.”
Although sometimes it can be easy to spot the poor partner, sometimes they aren’t as easy to spot. If looking to partner or invest, you want to find the “rich partner.” With these two descriptions, it doesn’t just come down to funds as the terms “rich” and “poor” might suggest. A “rich partner” is one who is going to bring value, is rich in knowledge and experience, whereas the “poor partner” might not have the most knowledge, understand how to add value, or know how to be in a great partnership.
Poor Partner vs. Rich Partner; how do you spot the difference?
Let’s take a look at the difference between the two, so you can insure that you are working with, and partnering with the right people. So what are the signs and indicators that we need to be aware of? Some are easier to spot than others.
Poor Partner Indicators
- Follows Emotions
When it comes to investing and partnerships, the last person you should be working with is someone who drives decision making by emotions. If you ever hear the words “I have a feeling”, it is a big indicator that someone is using emotions to drive a decision. Decisions from someone you are investing or partnering with should be based in facts, numbers, and results. An emotion based decision maker isn’t going to be less logical, make rash decisions, and be more inclined to lose their temper with you at some point in the relationship.
- Doesn’t put in the Time
You need to have a partnership and relationship with someone who is willing to put the time and effort into something. Things aren’t always going to go according to plan. When something goes wrong, will your partner be willing to jump in and work the extra hours or do whatever it takes to get it done? If not, you mind find yourself putting in both the work and the funds, which isn’t the balance of a partnership. When you first meet someone, do they give off the impression they are more interested in being social, having fun, and attending leisure activities, or do they come across as someone who is willing to work hard?
- Gives Up Too Easily
Success is often found in the relentless pursuit of something, so if the towel is going to get thrown in too quickly, you may never see the success level you are looking for. The first time you make a phone call or send an email, you might not get a response, so will they keep trying? This trait is easy to spot and test, and it should not be a problem in seeking a partner. If you connect with someone and exchange contact info, do they follow up? If they do reach out, wait a moment before responding right away. If they try again, maybe do something out of the box or see if they just give up. If they give up, then you know it wasn’t going to work out anyways.
- Lack of Focus
Focus on one successful project, investment, or partnership at a time. If you are working with, or considering working with someone without focus, there’s a great chance that nothing is going to actually get done. This trait can also be tested fairly simply. If you are discussing a project, throw in another idea at the same time. Does that cause them to go off on a tangent or can they stay on track?
- Only learning industry skills, not business skills
It doesn’t matter if you are a real estate investor or app developer… everything is a business and should be treated as such. So, does someone come across as having business knowledge and skills, or are they just armed with a lot of industry jargon so they can talk the talk?
Rich Partner Indicators
- Have a lot of experience
Someone who’s a rich partner will have a lot of experience and industry know-how. They should have a proven track record and can easily share examples of what they have done in the industry; even better if they can give you references.
- Want to help and add value
Value, value, value… your main focus should be adding value. It should be very clear that the focus is on how they can bring you value to you and not focused around them. If you hear the word “I” a lot, it’s not a good sign.
- Deliver constructive feedback
Having industry experience and knowledge, the rich partner will offer ideas and feedback that are constructive. It is ok if they don’t agree with everything that you say as long as they have a viewpoint they can justify. You wouldn’t want to partner with someone that agrees with everything you say, and thinks just like you. Find a good balance of different ideas and feedback that can bring you both closer to where you want to go.
- Know their numbers
Numbers are everything. If someone doesn’t have a general understanding of the numbers, how will they be able to craft a decision? Decisions should always be based on facts, and numbers give you those facts.
- You Get Along
This may seem a little silly, however, we are talking about a partnership here. Is this someone you actually like to be around, talk to, and deal with? If you see their number come up on your phone and you don’t want to answer, that isn’t the making of a great partnership. You shouldn’t be exactly alike, but you should be able to get along and actually like each other.
Is it really that simple?
Yes, it really is that simple to find yourself a “rich partner” now that you know what to look for. The search didn’t take us too long to find Richard and Nina Peutherer of Inspired Equity. It isn’t a challenge if you know what you are looking for.
In having one initial conversation with the Inspired Equity team, something that was said clicked for someone who was interested in delivering value. When Nina said “no matter what, we will always treat our partners and investors’ money with more integrity, caution, and care than we would our own”, a smile came to my face, which I tried not to show. As Richard then chimed in with “we uphold that every investment will be made with intelligence and integrity, as we see it is our responsibility to make certain this happens and follow through on our word.“ It was nice to hear how much care would be put into an investment, and that is exactly what you will hear from a “rich partner.”
From starting Inspired Equity in 2016, this investment business led by these two had a multi-million-pound property portfolio full of highly diversified properties. It takes most investors a year just to do just one deal, and this dynamic duo had built quite a robust portfolio in that same time frame. After taking a closer look into their portfolio holdings, it’s clear that what they are saying and what they are doing matches up. The Peutherers have focused on multiple investment types to ensure more than one revenue stream, building out one area before starting the next. Their current portfolio and focus breaks down as follows:
1) High-yielding, high-quality revenue generating individual room lets. This is accomplished by converting modern townhouses into houses of multiple occupation.
2) Creating capital growth by acquiring distressed properties and renovating them for resale back on the open market.
3) Converting an existing property from its current form or usage. An example would be acquiring a large family home or a commercial use building, and then converting it into residential flats or apartments.
4) Development or redevelopment of a building or plot of land into a new residential building; typically high-quality apartments.
The Peutherer team wasn’t always in real estate, but that doesn’t matter because they both exemplify the making of a “rich partner.” Nina’s background in the IT Industry with over 20 years of managing high-level corporate accounts has allowed her a deep understanding of cultivating relationships. Nina often aided her clients in forecasting, setting strategy, and keeping them on target. These are skills based in understanding numbers, project scope, and hitting deadlines, all of which you need in a partner. Richard, also spending years in the corporate world dealing with high-level international companies like American Express, IMB, and HSBC, knows a lot about business and maintaining relationships. He brings with him a very strong sales and negotiation background, which proves highly useful in closing real estate deals.
What Inspired Equity has been able to accomplish shouldn’t be surprising based on their market knowledge and understand of cultivating relationship and how business works.
Being based in and solely focusing their investment strategies in the U.K., they have a very vast understanding of the marketplace. When asked about the current changes in taxation taking place, their understanding and capability of seeing of an opportunity was refreshing. “whilst some inexperienced or uneducated landlords are exiting the market due to the changes in taxation, we very much see this as an opportunity to expand and pick up properties at discounted rates by investing in a tax-efficient manner as we run our business as a business. All but one of these changes in taxation do not impact our business whatsoever.”
How about the ever popular topic of Brexit and the economy, where do their views lie on that?
“There are many views on what the UK property market will do when we exit the EU, all of which are speculation, and everyone who owns a property, be they investors, landlords or just home owners, have become an expert on the subject. This can pose an issue, as people either stop putting properties on the market, stop buying them, or both. One thing is certain in our eyes though, there is still a huge shortage of housing in the UK and that won’t go away whatever the current status of the economy.”
Not everyone is going to have the exact same view in a partnership, however the importance here is the experience these two bring to the table paired with their strategies based in fact, results, and market knowledge, all of which are signs you should be looking for in a partner.
Poor partners and rich partners are not created equal, so you need to decide who you are going to trust your investment with. Do you want someone with experience, knowledge, value delivering, and focus, or an emotional decision maker with little experience and a weak work ethic? From what I can see, the choice is a simple one. When you are looking for your “rich partner”, you need not to look further than Inspired Equities, Richard and Nina Peutherer.