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Strategic Alliances in the REI Market

The target audience for this blog is a mix of investors and non-investors, people who just want to know more about real estate.  Today’s blog might appear to be more targeted toward investors but if you are patient and read on, you will find that it is applicable to everyone.  

Wikipedia defines strategic partnerships as “a formal alliance between two commercial enterprises, usually formalized by one or more business contracts but falls short of forming a legal partnership”, such as a Joint Venture.

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“When people talk, listen completely. Most people never listen.”  – Ernest Hemingway

The book, “The Art of War”, defines a source of strength as unity.  Ernest Hemingway claims that “no man is an island”.  A modern day adage illustrates weakness by calling someone a “jack of all trades and master of none”.  This phrase has come to mean that a person can know a lot of different things but does not possess excessive skill at any one particular aspect.  

Many businesses today can be pretty good at a lot of things but not truly masters of any one thing.  In today’s market, no one can afford to fall behind. Therefore, some businesses today have streamlined by letting go of business units that are determined to skew focus.  After an internal re-alignment, strategic partnering (otherwise known as “outsourcing”) strengthens the business.  Thusly, creating a united front and overall, a sturdy business that can withstand the battering by the market forces that will impact the competition who have not prepared.

It’s a whole new world out there!