I’ll let you in on a secret: Behind many commercial real estate investments are successful partnerships.
That’s because, in commercial real estate, each deal requires a different combination of specific knowledge and relevant expertise. For investors like me, partnering with someone who has depth of knowledge in a given asset class can mean the difference between lucrative success and abject failure.
Partnerships can play an important role in a project’s financing. In addition to an infusion of capital, they can expand options and provide wider access to resources. Some lenders, for example, may not provide financing unless a borrower has experience within a particular asset class. By working with an experienced partner, the combined entity then becomes an “experienced borrower” with whom lenders are more comfortable.
Geographic considerations also play a key role, as a partner in a different location may better facilitate permitting and other legal issues. They could also have access to certain tax incentives, grants, or government funding that can relieve some of the financial burden. Partnerships can further offer flexibility in terms of business structure, such as through joint ventures or LLCs that can be tailored to best serve the needs of the individual partners.
The benefits of a good partnership are clear, but many cannot see that potential partners exist right in front of them. In my experience, good partnerships often exist within one’s direct sphere of contacts. As an example, when I first began my career in the mortgage industry, I provided loans for investors and developers in commercial properties and cultivated those relationships over time. When I first entered the arena of multifamily investment and development, I partnered with former clients who specialized in that asset class.
As a real estate investor, Forbix is a strong believer in and implementer of partnerships. Over a decade in business, we have nurtured relationships with partners across all the asset classes in which we invest. With our partnership-driven business model that centers on mutual risk and reward, we always have skin in the game. That’s what sets Forbix apart.
In 2001, Emil Khodorkovsky began his career at a mortgage company and quickly advanced to become a partner of the firm. During his tenure, he began investing in real estate through private trust deeds, acquisition of performing and non-performing debt, and properties. In 2011, he co-founded Forbix and established a commercial mortgage bank, direct lending platform for private debt, and acquisition & development arm all under one roof.