The real estate industry is built on referrals and relationships. Behind every home sold is a connected network of agents, lenders, inspectors, attorneys and other professionals ensuring that the transaction goes as smoothly as possible — or working together toward a solution when there are snags.

Business partnerships that develop from these transactions often prove fruitful for both sides, in the real estate industry currency of referrals and repeat clients, as well as in trust that forms between two professionals doing their best to complete a transaction in a way that benefits all parties.

Tommy Choi, co-founder of Weinberg Choi Residential with Keller Williams ONEChicago, began working with Amir Syed, currently chief growth officer at Lower and co-founder and CEO at the loan officer coaching company Growth Only Coaching, about 12 years ago after meeting each other at a marketing event. In fact, the duo was featured together on the cover of the July 2013 Chicago Agent magazine, back when their business ties were strong but still relatively new. Their relationship has since evolved from one based on business transactions to a more personal one.

“Early on, we culturally aligned,” Choi said. “We had the same mindset of how we wanted to treat our customers and human beings in general. The natural business side of the relationship, where I was referring buyers to Amir and Amir might have some buyers or sellers for me, that was kind of the measurable as to how successful our business partnership is. Now, it’s evolved to kind of being mentors to each other, being trusted partners — having that trust and business acumen in each other, that we can lend each other and lean on each other as just a sounding board for decisions we make in our business.”

Most loan officers network with real estate agents, Syed explained, as the agent is the predominant gateway for loan officers to reach homebuyers who need financing.

“Many of us are out there actively procuring, prospecting, positioning ourselves to be the go-to for real estate agents,” Syed said. “Much of the longevity and success that happens is based on commonalities and shared values, being able to get through tough times with one another and knowing how to evolve with one another.”

Choi and Syed began their relationship on a transactional basis, but it evolved into something bigger over time, one in which Choi attended Syed’s wedding.

“We went from really a conditional relationship to an unconditional relationship, where now we don’t really do transactional business together,” Syed said. “But we still have a great relationship where if I left the industry, or he left the industry, we’d still be friends.”

Developing rapport

Sybil Martin, managing broker and luxury homes specialist with Coldwell Banker Residential in Hyde Park, and attorney Jeffrey Marks, of the law firm Busse & Busse P.C., have worked together for approximately 10 years. Marks recalled that he was referred to Martin through her brokerage’s in-house title company and did a lunch-and-learn presentation at her Hyde Park office.

“I think she just liked what I had to say, or she felt that our personalities would mesh,” Marks said. “I take things very seriously professionally, even though it’s a real estate transaction and it’s not an expensive retention for a client. I still treat it like I’m an attorney and this is a serious transaction. I think a lot of other people don’t look at it that way, but I am that way, and I think that’s something that she appreciated.”

Martin highlighted mutual respect, communication and trust as the elements that have made their partnership fruitful.

“When we first started out, it was like dipping our toes into uncharted waters — exciting yet uncertain,” she said. “But as time went on, we found our rhythm, learned each other’s quirks and discovered what makes us tick as a team. We’ve faced challenges together, celebrated victories and grown side by side. In a nutshell, our business partnership has evolved from a timid handshake into a full-blown high-five, fueled by mutual respect, collaboration and a shared passion for what we do.”

The rapport between Martin and Marks enables them to disagree from time to time on how a transaction should proceed. Their relationship is so good that Martin sometimes calls Marks her “work husband,” he said. They know what to expect from each other and navigate any disagreements with humor and the understanding that they are both working toward the same goals.

“Oftentimes, as a real estate attorney, we don’t get direct retention by a client,” Marks said. “The business generally comes from referrals from real estate agents. Because that’s where your business is coming from, I think some people feel pressured to acquiesce and do whatever the agent wants. You don’t want to upset the agent who’s referring you your business. But there are times where I have to diverge from the agent because I’m giving legal advice to the client. I don’t represent the agent; I represent the client. There are times where our opinions diverge, and she respects my opinion. And I respect hers. We can sometimes have different opinions, and it doesn’t mean that we won’t work again together in the future.”

Martin said she and Marks navigate the ups and downs of the industry by celebrating their wins, learning from their losses and keeping their “eyes on the horizon.” Remaining flexible and balanced throughout the transaction is key. She said balancing different perspectives and finding compromise when they have conflicting opinions is the hardest thing about partnering with an affiliate, but having someone to share the load, bounce ideas off and celebrate victories with is like having a built-in support system.

“When things hit a snag, we tackle it head-on with a mix of problem-solving and positivity,” Martin said. “We gather our team, assess the situation and brainstorm solutions together. By staying calm, focused and collaborative, we turn setbacks into opportunities for growth and innovation.”

Having the hard conversation

Choi believes that a good partnership stems from understanding one another’s “north star” and the direction the two are moving in so that they can align and stay on the same path. Sometimes those paths diverge and someone takes a wrong turn.

“I think what makes a strong relationship and partnership is that when that happens, not only is there a high level of accountability, but clear communication without pointing the finger or blame,” Choi said.

Choi likened the development and maintenance of a good partnership to a restaurant’s process for bringing a plate of salmon to the table, perfectly planked and with all the accouterments. However, it did not come out of the lake that way, and the work of preparing it behind the scenes was not pretty.

“You do that to be able to get to that final result,” Choi said. “That’s what a lot of relationships lack, being able to put the fish on the table and say, ‘Hey, let’s get a little uncomfortable, and let’s get a little messy here, because I want to be able to express how your action made me feel so that you understand it. And then let’s learn, and I want to be able to get your perspective because I might be missing something. Then let’s move on and build and get stronger from this.’ The best relationships are the ones that each can push each other to raise the bar on the standards that they hold themselves to … I think that’s the greatest strength and one of the biggest things I value in our relationship.”

Syed highlighted their ability to have direct, difficult conversations as a factor in their success together.

“That’s always the great passage to elevating the relationship: Can you have the uncomfortable conversation and get through it?” Syed said. “Most people avoid it, and then the resentment builds, and then the relationship sours or diminishes. If you can approach it as an uncomfortable conversation, it’s just a matter of time to leveling up the relationship. It comes down to trust and honesty and comfortability to have an uncomfortable conversation.”

Finding a partner

Syed recommends that before an agent partners with a lender, they should have conversations that function as interviews.

“So if one real estate agent, for example, was working with a lot of veterans, are there any specific types of financing for those veterans?” he said. “The Realtor should be asking the loan officer about his or her products, programs and knowledge base around the Realtor’s target avatar. It’s a cold interview; the officer is interviewing the Realtor and vice versa. Some of those questions should be around communication. Give us some examples of how a loan officer practices great communication and vice versa. And the loan officer should be asking the Realtor, ‘How many loan officers have you been with for the last five years? What’s the longest tenure you had with a loan officer?’ And the last piece is business development — how can each support their businesses to grow it and generate business together?”

Martin recommends that agents who are thinking about forming a partnership with an affiliate should first be alert to signs of poor communication, a lack of transparency or conflicting values.

“These red flags could indicate potential challenges down the road,” she said. “Trust your instincts and don’t hesitate to ask questions — it’s better to address concerns upfront than to deal with them later on. Before partnering with an affiliate, my top advice would be to do your homework. Take the time to research their reputation, values and track record. Look for alignment in goals and values, and don’t hesitate to ask tough questions. Ultimately, choose a partner who shares your vision and can amplify your strengths, creating a winning combination for success.”

To Choi, an agent won’t know what it’s like working with an affiliate until they actually do a deal together. It’s often up to the agent to take the lead in seeing whether a partnership can work.

“Until you actually lead with a referral and see how that transaction goes, you’re not going to really know if there’s something to build upon,” Choi said. “I think there’s always hesitation on the agent side, because we are typically the source, we’re the first domino that lines up in the transaction. A lot of the time we feel like we have this currency that we’re holding on to and we want to be protective over.

“If you feel like entering a transaction with someone you feel is performing well or that they’re someone you can align with, give it a shot, maybe give them a referral. That’s the only way to really understand, you know, and really know how that’s going to happen.”

Not every partnership is going to work, Marks said, and it’s important to know when to part ways rather than attempt to force something when the relationship is not copacetic. However, that does not mean agents shouldn’t give it some time to work. Setting expectations from the beginning can make it easier to determine whether the partnership can succeed.

“You don’t want to immediately judge somebody negatively because maybe they’re not doing exactly what you anticipated they would do,” Marks said. “That goes back to setting expectations from the beginning and letting somebody know, ‘This is how I work. This is what you can expect when you work for me or work with me. This is how I communicate. This is how I plan to communicate with you. This is how I communicate with your client. This is how I plan to communicate with them going forward. Are you OK with all of these things?’

“And if you set all that up in the beginning, then it’s super easy. If you don’t, then you don’t know what they’re expecting, and they may have expectations that may not be unreasonable, but they just may not be what you’re planning on delivering.”

EXPERT SOURCES

Tommy Choi, Co-Founder, Weinberg Choi Residential with Keller Williams ONEChicago
Jeffrey Marks, Attorney, Busse & Busse P.C.
Sybil Martin, Managing Broker and Luxury Homes Specialist, Coldwell Banker Residential
Amir Syed, Chief Growth Officer, Lower, and Co-Founder and CEO, Growth Only Coaching