Joint Ventures: Working Toward a Common Goal by Chris George
To see the full interview, visit www.cmgfi.com/jv-partners/ BerkshireHathaway-drysdaleproperties
Gretchen Pearson
President and CEO Berkshire Hathaway HomeServices Drysdale Properties www.bhhsdrysdale.com
had positive experiences with all of our partnerships, especially our most recent joint venture with CMG Financial.
What made you decide to form a joint venture How did your past experipartnership? ence with partnerships GP: I found that larger lead you to forming a joint companies with existing venture? mortgage relationships were Gretchen Pearson: In the past Pearson gaining a financial advantage on 35 years in this industry, I have us. Our joint venture partnership found that partnerships are the best was our defense mechanism, giving way to improve the customer experi- us the ability to stay competitive. Even ence. When the mortgage and real es- though our team was smaller, a joint tate side work in sync, whether that’s venture partnership gave us the ability through a marketing service agree- to speed up the transaction time and ment (MSA) or a joint venture (JV), cut costs, delivering a better customer we can create a repeatable, unified experience. customer experience. When I moved out of branch management in the late What led you to select your joint ’90s, I grew my career and, eventu- venture partner? ally, my brokerage through numerous GP: When I met with the leadership at formal partnerships. When we formed CMG Financial, one of the first things our brokerage in 2005, one of the I was asked was, “What do you want first things we did was put an MSA in to do?” A joint venture partnership place. We were starting a new busi- succeeds because both entities are ness, and we wanted to get our com- working toward a common goal. If pany off the ground. Partnerships like your joint venture partnership does MSAs and joint ventures give you the not begin with an exploration of both tools to expand your business with a partners’ goals, it will not achieve partner who shares your values. I’ve long-term success.
Another thing I look at is the potential partner’s existing relationships. Does the partner maintain other longterm partnerships, or is it regularly changing affiliations? Do its existing partnerships tend to grow or end within a few economic cycles? Referrals matter. Talk to your potential partner’s existing partners to find out more about their relationship. Find out what is working and what is not. Your ideal joint venture partner should complement your services and enhance the customer experience.
Did you meet your financial expectations with your joint venture partnership? GP: We had an incredible launch; we outperformed our expectations and continue to outpace our growth. We’ve set lofty goals for this year and are continuing to recruit and prepare for another busy year. Even facing the economic hardship of the pandemic, our partnership enabled us to withstand and adapt. We were able to increase our marketing spend, invest in formal training programs and still financially withstand market cycles. How do you convert agents to work with your joint venture? GP: My agents are always looking for ways to improve the mortgage transaction for their clients. One of our core values is to create the change we’d like to see in this industry. Through our joint venture partnership, we gain access to exclusive products that elevate our customers’ experience. Real estate is a relationship-based business. Clients return to agents they’ve trusted in the past. The same applies to agents and lenders; agents who are satisfied with their joint venture experience will keep doing business together. RE Chris George is the CEO of CMG Financial. For more information, please visit cmgfi.com/jv-partners.
RISMedia’s REAL ESTATE March 2021 41
