Private Money Partnering

Kinds Of Returns And Rewards

Chapter N (continued)

Make Adjustments When Necessary
Don't Be Greedy

Forms:
Who Gets What - Dividing Up The Benefits

PAT: I understand where you are coming from.

STEVE: Good, good.

PAT: And I agree you did a good job. Of course, I would not have put my money up to back you if I didn't feel confident in your ability.

STEVE: I'm pleased to hear your confidence.

PAT: But, I can't understand your line of reasoning. We went in on this as equal partners. I put the money up, you provided the expertise and our deal was that we were to split 50/50. Now Steve, had you come to me and told me that you had the bad news that the property appraised $5,000 less than we had anticipated. I certainly would not ask you to bear more of the burden than I do.

STEVE: But I probably would've volunteered to do that. That's just my style.

PAT: Well, being me, I would not have accepted it. I'm a fair person, Steve. And of course, I've always been impressed by your bargaining acumen, especially, as is evident right now. However, Steve. I have bad news and that is to split 50/50, just like we agreed on originally.

STEVE: Well, Pat, I'm not really sure that that's in your or my best interest. If you like this deal, we would probably like to do another deal together. If I can't depend on you for some flexibility there probably wouldn't be a lot of motivation for me to do another deal with you. I would probably try to find another partner who was a little more flexible. And I don't really want to put you on the spot to make a decision now. I'd just like you to really think about it and think more about some of the things that I've told you. Then we maybe ought to discuss it some more after you've had a chance to think and I hope you're willing to be flexible.

PAT: Well I have some degree of flexibility, Steve. I might find it in my heart to give you an extra bonus or something like that for a job well done. I'll have to consider that. I think you've done a fine job.

STEVE: Well, I appreciate that. So you will think about it and we'll talk more and maybe a bonus or something like that would be in order?

PAT: Yeah, sure.

STEVE: And I think that might be very satisfactory. Why don't you think about it some more and we'll kick it around next week.

PAT: OK, Steve

STEVE: OK, great, thanks a lot, Pat.

Was that a win-win? The final disbursement of the funds will probably be different than what was projected. Do you know what Steve wanted? He wants more money. Do you know what Pat wanted? He wants all of his share of the extra profit, as had originally been promised, but he was willing to consider an adjustment. Pat wanted to understand, and wanted to be able to justify the change.

Kinds of Returns and Rewards - Chapter N (continued)