If you’ve gotten your foot wet in the real estate investing industry, you might have already figured out that you are who you know. This sounds a bit contradictory since real estate investing is also known as a “lonely” industry since you aren’t in a big office or meeting with people regularly.
There are a few reasons why knowing the right people can help you in your business. You can rely on them for support and give guidance as you’re starting out. They can also provide recommendations on what to do and who to work with. Listen to what they have to say (in addition to your own due diligence).
We’re going to break this down for you and explain why it helps to have connections in this industry.
“Learn from the mistakes of others. You can’t live long enough to make them all yourself.” – Eleanor Roosevelt
Watch, Analyze, and Follow the Experts
If you don’t know any real estate investing experts, take a few minutes and scour FlipNerd’s site. It’s full of experts that are providing useful information that they’ve learned first hand. Watch these experts and other experienced investors (make sure they’re experts in the niche you’re pursuing- i.e. wholesaling, rehabs, rentals, etc). See what they’re doing (and what they’re not doing…) and see if it fits your business model.
We’re not saying you have to do that they’re doing. Some strategies won’t fit your market or your plan. Seeing what is working for others can provide you ideas and come up with the best plan of attack for your deals.
Join Your Local REI Club
In addition to following experts, your local REIA can be an excellent source of like-minded individuals who are actively investing in your market. Share experiences of past deals with each other so you can learn from each other’s successes and shortcomings.
Build relationships with your peers at your local REIA. This can provide you with recommendations of lenders, general contractors, attorneys, investor friendly title companies, real estate agents, and many other connections that will be beneficial to your business.
Opportunities surround you. Have a handful of business cards in your wallet. Like we mentioned before, there are quite a few other contacts who will play a part in your deal closing.
Looking for private money lenders? Have your business card easily available and be ready to share why they should trust you (this is where experience is a huge factor). If they’re looking to invest their money in a stable deal with high returns, you want to put your name in front of them.
What about all of your rehab work? Recommendations from other real estate investors can provide you with a list of general contractors or subcontractors that you can get bids from for your upcoming fix and flips. Take advantage of these recommendations because their work has, in most cases, been proven to be of good quality.
For wholesalers, building your buyer’s list is crucial. Remember that a few quality buyers who are serious about finding discounted properties are better than 100 buyers who aren’t ready to pull the trigger. Auctions can be a good source to build your buyers list. Simply provide your business card to all of those who don’t have the winning bid and let them know you can bring deals their way.
There’s multiple inputting and tracking systems to assist in keeping your lists organized.
Become Active on Social Media
We don’t mean scrolling through to find out who’s having a baby and who’s getting divorced. We’re talking about joining groups with other real estate investors.
There are hundreds of Facebook groups out there. Find a few that work for you. Some are local to your area while others are niche specific and nationwide. Some will be more active than others and stay away from the “spammy” types of groups. You want groups that can provide you with knowledge, support, and have an active dialogue going on various topics related to real estate investing. The local groups are great for finding out what’s working in your market and sometimes you can even find a deal on there.
You can post pictures of deals you just closed or of rehab before-and-after photos to these groups and to your normal page. Remember to keep your postings on all social media accounts professional and friendly. Showing your progress as a real estate investor is positive exposure.
Find What Works For You
Having connections is vital to this industry. After taking the time to build your list of reliable sources, it doesn’t mean you should stop taking recommendations or networking. Figure out what strategies provide you with the best connections and continue to grow as a real estate investor.