In real estate, one document stands above the rest: the operating agreement. It serves as the foundation for any partnership—outlining each person’s roles, responsibilities, and how compensation is handled. A well-written operating agreement ensures everyone is aligned and helps prevent conflicts down the road.
Having built several successful companies, I can confidently say: don’t skip this step. An operating agreement keeps everyone on the same page. Taking the time to get it right from the start pays dividends later. It sets the tone for how the business operates.
Partnerships often run into trouble when expectations aren’t clear. Imbalances in contribution, effort, or decision-making can lead to frustration. That’s why it’s essential to clearly define duties and accountability in the agreement. Include regular check-ins and performance reviews to keep communication open and the team strong.
I’ve seen things fall apart when one partner feels overburdened or another feels left out. Setting clear expectations early avoids misunderstandings and builds trust.
Success in real estate depends on strong teamwork. It’s not just about hiring skilled individuals—it’s about building a team that communicates well and shares the same vision. Regular reviews and team meetings help keep everyone aligned and focused.
Documentation is another key to scaling. As your business grows, start creating standard operating procedures (SOPs) and checklists. You don’t need to do it all at once, but gradually building these systems will improve efficiency and support future growth.
From my experience as a real estate investor and coach, I’ve learned that two things make a huge difference:
A great team
Solid documentation
But above all, the operating agreement is the most important tool in your toolbox. It brings clarity, avoids surprises, and creates a healthy, productive partnership that can stand the test of time.
