How to start networking as a novice real estate investor?

Question

Hello BiggerPockets Community,I've been consuming a lot of content from the BiggerPockets books and website recently, especially about networking and building your team, but until now I feel like I am stuck with a chicken-or-egg problem: How do you start building your REI network if you have limited experience and resources?For example two groups that are often mentioned as the first part of your team are real estate agents and other RE investors. But if I start contacting real estate agents about investment properties when I do not have the funds ready, what value do I provide to the real estate agent.

Conversely if I start building relationships with other investors who might have funds available (but not the time to look for deals), what value do I provide if I do not already have a ready stream of possible deals.

Even if I start networking with both groups at the same time (and all the other members of a REI team), it doesn't solve the problem right away, since there needs to be some rapport already, which needs time.

In other words, how do I start networking without wasting anyone's time? Thanks for any answers :)

Jonathan Greene · Answer

You are correct on one and so wrong on the other. Yes, you should not start contacting real estate agents now if you don't have any money. They work on commission and get a million of these, I am going to crush it one day, calls. But, you are so wrong on connecting with other investors because you are talking about funds. If you want money from other people, stop and quit now. Your job when you network is to talk to other people and build relationships. You are putting the chicken before the egg and your priorities are off. It's not a waste of time for another investor to talk about what they did, they love that, you just have to be an active listener and not someone trying to ask about money.

Andrew Postell · Answer

@Fabian Petersen building relationships with investors?  That's what you are doing with this post!  This is exactly what "building relationships" is about - learning.  And you'll never stop learning.  So, you'll have to continually build relationships!  It's just part of how real estate investing works.  Now, I have never used a real estate agent to buy an investment property. I have certainly used one to purchase my primary home - but not an investment.  There are so many deals that happen "off market" with better returns that searching on the MLS isn't worth the time.  Everybody is different.  And all things change.  But I would encourage to you network with other real estate investors in your local market and find out how THEY do it successfully.

Now, I did notice you are in the Netherlands.  That might be a completely different thing in and of itself.  None of the strategies in the US may work there.  Usually, I would reinforce to try some local real estate meetup groups.  Meetup.com is a good resource for those but some of the groups will also post here on Bigger Pockets Marketplace too.  Even facebook might have some good local groups for you.  Some of those facebook groups have thousands of members. Eventbrite too.  But does the Netherlands have these things?

Does the Netherlands have hard money?  30 year mortgages?  Rehab loans?  Returns on real estate that are attractive?  Many countries don't have these things.  So, keep in mind what works here may not work there.

Keep digging!

Karen Chow · Answer

I'm in the same boat, so I'll tell you what I've been doing, and what I'm thinking about. So far I've done things like make my LLC, work on getting a bank account, and work on a PPT for private investors, and have a web site. For networking, I think I'll start just by attending a local real estate investor meeting and just listen and meet people, and hand out my business card. To get used to talking about it, I might just work with another new business owner and practice our pitches together. For analyzing markets and deals, do that on my own, getting familiar with one market, looking at the prices and conditions, etc. I haven't subscribed to propstream, but might take a look at that. If anyone has any ideas for me too for networking let me know.

Fabian Petersen · Answer

Thanks for answering everyone. @Andrew Postell Yes it's true that in the Netherlands the REI landscape is a bit different. Hard money lenders and rehab loans do not exist here, though you can get some renovation funds together with your mortgage.REI meetups are more rare too, and mostly focused on investing abroad. I can still find ways to connect with RE investors, for example through LinkedIn, but I want to make sure I can provide value first. Sometimes I contact people with a question about their experience, and often they are happy to answer, but this doesn't create any momentum to build a relationship in the long run.I'm actually considering moving somewhere else where there are more opportunities (e.g. more REI meetups), but I'm not sure this will automatically solve the  issue I described for the LinkedIn approach.

How to start networking as a novice real estate investor?

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