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

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 had positive experiences with all of outperformed our expectations and our partnerships, especially our most continue to outpace our growth. We’ve recent joint venture with CMG Financial. set lofty goals for this year and are continuing to recruit and prepare for What made you decide another busy year. Even facing the to form a joint venture economic hardship of the pandemic, How did your past experi- partnership? our partnership enabled us to withence with partnerships GP: I found that larger stand and adapt. We were able to lead you to forming a joint companies with existing increase our marketing spend, invest venture? mortgage relationships were in formal training programs and still fiGretchen Pearson: In the past Pearson gaining a financial advantage on nancially withstand market cycles. 35 years in this industry, I have us. Our joint venture partnership found that partnerships are the best was our defense mechanism, giving How do you convert agents to work way to improve the customer experi- us the ability to stay competitive. Even with your joint venture? ence. When the mortgage and real es- though our team was smaller, a joint GP: My agents are always looking for tate side work in sync, whether that’s venture partnership gave us the ability ways to improve the mortgage transacthrough a marketing service agree- to speed up the transaction time and tion for their clients. One of our core ment (MSA) or a joint venture (JV), cut costs, delivering a better customer values is to create the change we’d we can create a repeatable, unified experience. like to see in this industry. Through customer experience. When I moved our joint venture partnership, we gain out of branch management in the late What led you to select your joint access to exclusive products that ele’90s, I grew my career and, eventu- venture partner? vate our customers’ experience. Real ally, my brokerage through numerous GP: When I met with the leadership at estate is a relationship-based busiformal partnerships. When we formed CMG Financial, one of the first things ness. Clients return to agents they’ve our brokerage in 2005, one of the I was asked was, “What do you want trusted in the past. The same applies first things we did was put an MSA in to do?” A joint venture partnership to agents and lenders; agents who place. We were starting a new busi- succeeds because both entities are are satisfied with their joint venture ness, and we wanted to get our com- working toward a common goal. If experience will keep doing business pany off the ground. Partnerships like your joint venture partnership does together. RE 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.

Chris George is the CEO of CMG Financial. For more information, please visit cmgfi.com/jv-partners.