You’ve heard it before…
Networking is everything. Within the real estate investing industry, it’s critical to form connections with everyone you can in the business. Not only will you find support within the industry this way, but these relationships can also create opportunities for you.
Who should you know? The simple answer is everyone. Below are the main connections you should have as a real estate investor.
- Other like-minded real estate investors
- Real estate agents
- Real Estate Attorneys and Title Offices
- Motivated Sellers
Other Like-Minded Real Estate Investors
You can learn so much from other investors. There are REI clubs (or REIAs) all over the country and are perfect for meeting other investors. The frequency of how often they meet varies but these meetings are full of other real estate investors in your area who are going through the motions of getting deals done.
Absorb as much as you can from them.
Real estate investing is very much experience-based and the next best thing from self-experience is to learn from other people’s experiences. Find out what is working in the area.
Learn from investors who have been in the industry longer and don’t be afraid to offer support to those newer to the business than you.
It’s a give and take. Don’t be greedy and expect others to come around and help you.
Instead, build long-lasting relationships that allow you to both support and challenge one another. Find an investor who pushes you to do better because you see the passion they have.
Real Estate Agents
Some might be wondering why you should get close with at least one real estate agent.
They have the best network of buyers and sellers.
This means they can let you know about cash buyers for your wholesale deals and also about retail buyers for your rehabbed properties.
They can be a tremendous help if they understand and want to work with a real estate investor. Set up expectations of what you’re looking for and how involved you’d like them to be. They get paid on the closing so as long as you’re bringing deals to the closing table, they should be happy to continue working with you.
From aspiring real estate investors to seasoned investors who have been in the business for 10+ years, it’s always beneficial to have a mentor or coach.
You should never stop learning since the business is evolving as technology improves. If you stop learning, you will start falling behind.
Many of the most successful investors are in Mastermind groups. These groups offer support, education, and connections from other real estate investors. This type of group mentoring can pay off exponentially if you learn a few good tips to implement in your business.
If you’re a rehabber, good vendor connections can make or break your business. Finding a reliable vendor who offers appropriate pricing and can get the job done on time can mean you’re able to knock out more deals a year.
If you’re in need of a particular vendor (plumber, electrician, painter, etc.), utilize your relationships and get referrals.
Once you’ve got a trusted vendor, treat them right. Provide them with any information and materials they might need and pay them on time! If you’re able to consistently have projects for them to work on, they’ll want to do all of your projects.
Wholesalers provide the easiest way to find deals. If you get on a few wholesaler lists, you can have steady amounts of properties for you to sift through to find the best one for you.
In addition, they know a lot of cash buyers and they can help you locate cash buyers for your wholesale deals.
When determining which wholesalers to build a relationship, verify their numbers (comps, ARV, repairs) and see if the numbers that they’re marketing are accurate. You don’t want to waste your time with wholesalers that inflate their numbers.
Once you establish a relationship with a wholesaler, prove to them that you’re serious about getting deals done.
Actions speak louder than words.
Show them that you can provide a serious offer and close on the deal quickly. Once you’ve done this, they’ll be more likely to show you deals before the mass market and might mention to their wholesaler connections that you’re easy to work with, and in turn, bring you more deals.
Once you have this rapport with them, transactions will go smoothly and you will both reap the benefits of your relationship.
Real Estate Attorneys and Title Offices
Some investors tend to overlook these two relationships, but shouldn’t. Real estate investing can get complicated at times, and you want to have a professional on your side that understands the business.
Real estate attorneys who are investor friendly will be able to help educate and prevent you from getting into a tough situation. Instead of assuming what you’re doing is right, it’s much better to spend the time and money to have it done the right way.
Otherwise, you’re risking your business and possibly your personal assets as well.
Find one real estate attorney (get referrals from other local investors) that fits your business model and build a relationship with them. Break down your business for them so that they have a good understanding of your goal and what you’re doing to get there.
You won’t need them all the time, but it’s important to have someone who understands your business when you need it.
For title offices, some are more investor friendly than others. Once you have a title company you’re comfortable working with, make sure they have everything they need from you for closing. As you do more and more deals, they’ll become more familiar with your deals and it will become a faster (and smoother) process.
They can also be a good source of information as they’re seeing a lot of transactions from other investors and at times, can even help you find buyers or sellers.
You’ve heard it before. “It’s not about the house!”
It’s true. Motivated sellers want to work with someone who understands their situation and wants to be a solution for them. They don’t want someone who is all about the profit and getting in and getting out.
Build rapport with them! Listen to their story. Connect with them on a personal level.
If you do this, their guard will be down and they will be more willing to work with you.
Outlook on Relationships
In general, follow the golden rule.
Treat others like you’d like to be treated.
Don’t expect to always be on the receiving end. Be willing to give and good will come to you. Nurture your relationships as they can be a catalyst to significant growth in your business.