Partnerships - the triumphs and the pitfalls. Constant fodder for 2am deliberations!
You have decided that you wish to become a real estate business owner. For that to happen, in your particular case, the reality is that you will commence a new business.
Sometimes it seems so natural to go into partnership with someone - you’ve worked together as salespeople and both of you have shown and grown a great affinity to the real estate process. No reason not to be partners.
Why is it then that many partnerships end in tears when it seemed so promising at the beginning? Often this happens through poor exchange of expectations.
Being excited at a new venture doesn’t last long if there are big differences that surface through different values, different levels of risk acceptability and different responses to events that unfold, eg. a poor sales month! But a successful partnership in real estate can be really satisfying. A strong partnership creates depth and capacity. Different streams within the business (eg. sales and property management) can then have their own effective leader.
More often, problems of partnership arise, surprisingly, from life issues. Health, family pressures (of all kinds) and a redirection of what interests one partner can cause a partnership to go pear shaped.
Then comes the universal problem. Communication doesn’t happen or, if there’s an attempt, it causes even more difficulty.
But ignoring these issues is no answer. Sometimes external parties can help (what about one’s franchisor?).
Good questions for 2am club members!
Each month Ray White produces the White Paper which includes industry news and market commentary. For easy access visit www.raywhite.net