Let’s face it. Real estate is competitive, and brokerages are looking for every competitive edge they can get to earn repeat clients and referrals. Many brokerages are adding ancillary services (via joint ventures) to help create the ultimate client experience.
You’ve likely been hearing more and more about joint ventures (JV). Perhaps you’ve even considered it for your brokerage. We’ll share some insights on what a JV is, followed by who it benefits.
What is a Joint Venture?
A joint venture (JV) is a legal cooperative enterprise entered into by a title agency and a real estate brokerage. The parties in a joint venture maintain their own business identity while working together to complete a deal. Expetitle creates a new, fully legal LLC and the brokerage owns a portion of that entity, allowing them to share in the net operating profits of the new title company.
Benefits of a Joint Venture in Real Estate
1. Save Time and Close More Deals
Working with a tech-forward real estate title company will allow you to expedite your closing. This means you can close even more deals per year.
Expetitle allows you access to a personalized portal where you’ll add the property, invite all necessary parties, and the Expetitle team of best-in-class title agents will take it from there. You can choose your level of involvement.
2. Better Technology
Client expectations have changed, especially in the last couple of years. Clients can find homes online, tour them virtually and get financing online—but the tech-forward approach typically stopped at the closing process. That isn’t the case anymore.
Today’s home buyers and sellers expect to be able to do everything digitally. The days of brokerages partnering with outdated title companies who are still working via lawyer’s offices, fax machines, and stacks of paper – and clients deeming it acceptable – are over.
Partnering with a title company like Expetitle will allow brokers to leverage technology to process their clients’ closings more efficiently and with higher service levels. Brokers and clients can view real-time information on any device in just a few clicks. This allows real estate agents and clients alike to feel confident that their closings will happen on time.
3. More Profit
If you’re looking to grow your brokerage, adding a title service is one of the quickest and most effective ancillary services to add. Plus, your brokerage is already doing most of the work, so why aren’t you fully reaping the rewards? From getting realtors and bringing in leads to managing showings and signing homes, your brokerage is handling all the work. Until it’s time to do a property title search. Your brokerage then hands it over to another company, who then earns the title commission – while you don’t earn anything. It doesn’t have to be this way.
By forming a joint venture, your brokerage can extract more value, and profit, from the real estate value chain. By doing so, you’ll share in the title premiums and closing fees.
4. More Satisfied Clients
Working with a joint venture title company will allow you to streamline your clients’ home buying and selling experiences. Today’s ultracompetitive housing market is showing us the importance of time. Being a one-stop shop for all your clients’ needs helps facilitate the process and ensures a positive experience all around.
A title company JV partner can help you grow your brokerage exponentially by getting a real estate deal done more quickly and profitably. Who will win? You and your clients. Now that sounds like a win-win.