Building Trust in Joint Venture Deals

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Trust as a Commodity

 

Almost, if not all kinds of human relations require some level of trust to thrive. This is particularly true for business relationships.

 

Trust in business relations is a situation where clients or prospects attain a state where they can afford to water down their doubts, uneasiness, or insecurities with respect to a business transaction.

 

Ours is a world where the bulk of the population relate with each other with suspicion, and for this reason, one needs to be on top of their game, by making deliberate effort to build and earn their clients/prospect’s trust.

 

So how is trust built for joint venture deals?

 

Let's take a look at three perspectives

Trust in genuineness of the property

 

 

Having a registered and well documented title on the property for a JV deal, attests to the genuineness of the property. This is a good way to begin to build trust.

 

You also want to be able to convince anyone, that you can close the deal, by being able to prove that you are able to relate and identify with the owner. You should be able to provide as much information as is possible as an indication of your closeness to the owner.

 

Trust in Middlemen – Agents

 

 

The emphasis here is on the pedigree of the agent or agency. When the agent or agency is a brand with verifiable track record, the chances are high that prospects will be more at ease and be willing to deal.

 

This however does not mean that lesser-known brands and startups are thrown in a hopeless abyss. Good feedback on such brand’s customer relations, organization structure, timeliness and their ability to walk their talk with matching actions will soon earn such brands the trust of prospects.

 

Trust in the JV partners – property owners and developers

 

With property owners, there must be clear proof the acclaimed owner has proprietary rights to the land. Where there are defects in the owners’ rights, disclosure at the initial stage may be an indication that the owner is being honest and thus worthy to be trusted.

 

With developers, you want to be sure that they can oversee the project from start to finish, proof of adequate funding coupled with traceable record of quality of past projects and how such projects fared or are faring after completion can help assure all parties of the developer’s capacity.

 

Trust is a valuable commodity, and the onus lies on everyone to act in a consistent way that proves they are trustworthy. Trust once broken is very hard to regain and the price paid can be very high.

 

Cheers