Partnerships and Affiliations are Essential to Effective Business Modeling

There's an old adage that says, "It's not WHAT you know, but WHOM you know."  Well, don't believe it!  Times have changed and "connections" will only get you so far.

I have come to understand that WHOM you know is what gets you in the door -  WHAT you know is what really keeps you on the inside.

This article is devoted to the WHOM you know aspect of the Real Estate industry.

Just like when investing money, diversification in relationships is of critical importance.  And, just like when investing money, diversification of itself is not enough - your investments must be in QUALITY investments.  And... yes... you guessed it; this is critical in the Real Estate Industry as well.

Key partners are the third pillar of a well-balanced business model.  Let me use myself as an example.  I specialize in residential Real Estate Home Mortgages in Castle Rock, Colorado.  My demographic is the move-up and affluent home owner/home buyer.  I can target where they are, but if I go OUT to them, I am "one of many."  You've seen it.  How many solicitations and marketing pieces do you see coming in to you from "cold-calling" Lenders and Realtors®?  Wouldn't an inbound lead referred by a partner be much stronger? 

In my business model, I have identified that the client base with whom I would prefer to work also works with Accountants, Estate Planning Attorneys, High-end Realtors®, Custom Home Builders, Lawyers, and Financial Planners.  So, instead of marketing in an outbound sense to a neighborhood inhabited by the affluent (just like the average Lenders), I partner with influencers instead.

Now to the "knowledge" aspect; In order for me to earn my partnerships, I must be knowledgeable in their area of expertise.  I must be able to communicate to that Custom Home Builder, for example, who, by partnering with me, can provide an added value to their client, not only by producing a fine product for the client, but also by advising the client that the mortgage process is a key element in the home-building process and that, if done improperly, may cost the client hundreds of thousands of dollars in future wealth.   (That is not an exaggeration by the way.)   Finally, the builder recommends that the client talk with me since I am a Certified Mortgage Planning Specialist.

I also want to convey to my partners two key elements of my association with them.  First, humility is a must - Given that the leads I receive will be coming from the partner, I understand, in the mind of their valued client, I am an extension of the partner.  I am not the center; the partner is.  I represent the partner when working with their client in a manner of the highest professional standard.  Second, I need to reaffirm the status of my partner with the client.  I will say something as simple as, "Mr. Jones, I want you to know how fortunate you are to have Mr. Smith as your Building professional.  I have been familiar with him for years and I have seen the unparalleled results of his craftsmanship on many occasions.  You are in very good hands.  In fact, his understanding of quality and service is part of the reason he recommended that you and I touch base.  Mr. Smith always keeps his clients' best interests at the top of his priority list."

Think about it, how would you like to have a business partner talk about you like that with your clients?

As you begin to think about prospective business partner relationships, know that it's OK to be a little selfish.  Be clear about how you do business and what your expectations of a good partner are.  Also, be clear about what it is that you will be able to bring to the relationship.  The key is to recognize that the standards you set and the partners you choose will determine the clientele you work with.

After identifying a prospective partner, interview him or her.  Do what is necessary to make sure that that individual is a good fit for you.  Don't force yourself into a partnership just because that person could be a source of leads.  Chemistry and a mutually beneficial business relationship are essential.  Finally, keep your key partnerships limited.  Don't, for example, partner with eight different builders.  Pick two or three and then develop a deep, reciprocal, trust-based relationship.

You will find that by developing key partnerships that match your geographic and demographic model will diversify your lead-generation sources and will be of value in a wide variety of markets.

Real Estate Mastery covers many facets.  Effective Partnering is of vital importance.

Greg Polashock is a Real Estate Home Mortgage Loan Consultant and Certified Mortgage Planning Specialist with Cherry Creek Mortgage and resides in Castle Rock, Colorado.  He can be reached via email at Greg@GregIsFinancingSolutions.com, by phone at 303-887-0672 or on the web at http://www.gregisfinancingsolutions.com/.