Finding the Right Real Estate Business Partner: How-To Guide

Posted by Irina Jordan

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Aug 21, 2015 9:00:00 AM

RealEstateBusinessPartners

Building a dynamic real estate team provides a lot of benefits. Namely, the fact that you collectively have a much larger network, more robust expertise and you have the ability to service more clients at a time. If you've been considering the option of inviting another agent (or agents) in to help you build your brand but aren't sure where to start, you're in the right spot.

When you're seeking out a real estate business partner, you need to find someone who is motivated, trustworthy and great at collaboration. Perhaps you've already got your eye on a couple of well-known agents in your area that you'd like to connect with or maybe you're starting from square one. Whatever the case, it is critically important that you find the right person (or persons) to bring on board.

Use these 7 tips to find your perfect real estate business partner: 

  1. Look for candidates who bring unique skillsets to the table:

    You know what you're great at. Look for business partners with strengths in other areas that will complement your skillset. If you're great with people but aren't really a fan of math, look for someone who is strong with writing and managing money.

  2. Make sure you agree at a principal, fundamental level:

    Working together means making lots of tough decisions together, and in order to do that effectively, you need to make sure you agree at a base level. Have in-depth conversations about your goals for the business, what you'd like to invest in and the timeframe you have in mind to accomplish said goals. 
     
  3. Confirm your potential partner has a similar work ethic as you:

    Do you remember group projects in school - when someone in your group decided they had better things to do than to help with the project? You don't want to encounter that situation in your professional life. Ask your potential partner to share some real life examples how they have worked through some complex situations that involved lots of due diligence.
     
  4. Ask forward questions to gauge their level of commitment to the partnership:

    You need to know that your potential real estate business partner is committed to working with you and will bring the best of his/her abilities (and connections) to the table.  Ask open-ended questions about pros and cons of your partnership and work through all the issues before moving to the next step.

  5. Request character references:

    You want to learn from your potential partner's past colleagues and partner agents what was it like working with him/her. Don't hesitate to ask for references from as many people as you feel needed to paint a complete picture. Do your thorough due diligence upfront to spot any red flags and address any potentila issues.

  6. Talk about money and the decision making process upfront:

    Money can be a source of conflict if not addressed in an open and straighforward manner upfront. Discuss how you plan to share commissions and costs before you formalize your partnership. Also talk about who gets to decide what and why. You want to have a transparent decision making process  - better put it in writing for an easy reference and get your partner agree to it.

  7. Present them with possible conflicts and see how they respond: 

    Go through a few scenarios where a conflict may arise. Gauge how your potential partner approaches those stituations and whether you agree with his/her approach. Role play a situation where a conflict of interest or personalities can happen and analyze how it gets resolved and whther it congruent with your business style.

Once you've gone through these seven steps, if your potential collaborator passes with flying colors - you've just found yourself a real estate business partner!


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Topics: Practical Advice

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