Key Takeaways:

It is important to align goals and ensure congruence in objectives and strategies with any potential partners before investing in a project together. Not being on the same page can lead to problems down the road.

Properly assessing and managing risk is critical, including understanding different types of risks, likelihood of occurrence, potential impact, and having a clear risk management plan.

Partnership agreements should thoroughly address potential issues like buyout provisions, processes for resolving disputes, and responsibilities in worst case scenarios to protect all parties.

When evaluating deals, it is important to consider both the existing risk-adjusted cap rate as well as the potential for value add and equity creation through the execution of a business plan.