We have all heard how your network is your net worth. Your network can open up opportunities that may never be available without the connections made. It’s one of the most powerful tools as a real estate investor and the most successful investors have perfected the idea of maximizing their network.
If you follow some of the more well-known investors in your area or even nationwide, you’ll see that they’re consistently working with other investors to do deals, supporting each other, and overall building a solid relationship with them.
They understand that sometime in the future, the relationships they’re building might benefit both parties.
One might have a great lead and the other has the capital to fund it.
One might have a multi-family deal that his network would like to jump on to get the deal closed and everyone profits.
One might know of an investor in another market that you can send leads to and vice versa. You both get deals out of the dead leads from one another.
There are an endless number of opportunities that can arise from the relationships you build within your network.
Let us be clear. Do not build relationships for one-way benefits. Do not take without the goal to reciprocate as soon as you’re able to. It doesn’t take long to build a negative reputation but it could take years to repair it.
Simply put, your relationships within your network should be beneficial to both parties. Find a way to help each other out based on your individual strengths.
The more people you know in the industry, the easier your life will be.
Need a new electrician or plumber? Your local network probably has a vetted recommendation for you.
Looking for wholesalers for a property a few towns over? Your network probably knows investors who buy in that part of town and might be interested.
Whenever you have the chance, whether it’s at REIA meetings or other local events, take the time and get to know other investors and be genuine in your conversation. Get to know them and follow up with them periodically so if there is an opportunity for both of you, it’s not out of the blue.
Never take a business relationship for granted and when possible, be the first to reach out when you might be of help to another investor. They’ll keep you in mind and good things come from those who do good.
Network whenever possible and focus on building long-term, solid relationships with those in the business. It can be a win-win for both of you and can open up the door to new possibilities.