Be clear about what you expect! (Partnerships and ventures)

[Matt Lockwood]

In my experience with real estate as with many things in life, I have found that clear communication of expectations has proven to be a key component in the successful structuring and execution of any sort of business partnership or service transaction relationship. In my opinion, when setting up any sort of legal entity, partnership, new venture, etc. it is crucial to sit down with your people and clearly outline all expectations, roles, duties, and other relevant terms or conditions before working together. So many times I watch people enter into business relationships that later fail or otherwise fall into turmoil because the expectations of those involved were either outlined in uncertain terms or were not outlined at all. Clearly stated expectations eliminate ambiguity and miscommunication; they help to create a culture of accountability that will serve to increase efficiency and avoid problems. This applies to employee/employer relationships as well. In college I was well served by my habit of sitting down with any new employer over lunch for a short meeting about what I expected of them, what they expected of me, and what we expected of ourselves. I would type these things out and print a copy for each of us as well as agree to review it after time had gone by to evaluate our performance. The same can and should be done with investors, agents, partners, or other business associates. Even the simplest of expectations that seem almost negligible can prove to be valuable tools in guiding your business when clearly outlined and communicated with those around you. 

What are your experiences with communication of expectations or the lack thereof in your real estate business? How do expectations create problems if not addressed adequately beforehand? Do you have any stories, experiences, or tips/strategies to share ?