Is Finding Better Deals Through Networking Possible?

Question

This may be a dumb questions, perhaps? I am a San Antonio investor and up to this point I only have one rental but I'm looking to pounce on another two deals later this year. Up to this point I have not networked at all, not gone to real estate groups and so on. It's not that I won't, but I just haven't and I am fully intending to start doing just that starting early this year.

But my main reasons for doing it are A) to find better deals because the San Antonio market, at least through MLS/Zillow etc can't find anything coming close to the 1 percent rule, unless I'm looking at things wrong. B) to find resources like recommended/reliable CPA's, lawyers, handymen/electrician/plumbers (note: I have these but being small, would like to cross-shop for a more long term partner) and finally and most importantly find a reliable wholesaler with integrity.

So I guess my questions are two fold:

• Does networking actually help you find good deals? Wouldn't those who are in those meet groups just want the deal for themselves? I feel like this logic is counter intuitive.
• What are, in your opinions, the greatest benefit to networking in your area? Is it mentorship? Is it team-building (CPA etc) references?

Rick Pozos · Answer

I could only give @Jacob Sampson one vote, but would have given him 3 or 4 if I could.

I can not stress enough that relationships are so important. I never go to the meetings to find deals or to find private money, I go to make friends and see what I can do to help others. I think it was Zig Ziglar that said if you help enough people get what they want, you will get what you want. Have a servants heart.

If you want to be serious in this business, you have to know plenty of people and have connections with them. You help each other. Alamo Investors has a good group, I have a smaller group too.

AND make some friends on here also. I saw you have 1 friend in 3 years, OMG. AND you dont even post your last name.

Jacob Sampson · Answer

Relationships are key (to success and happiness).  Meaning, it is not only the relationships you make at networking events.  You should value and cultivate all of your relationships (and not just because they may be financially beneficial).  As an example, I worked for a locally owned company several years ago.  The owner and I got to be friends and stayed in touch after I moved on.  He knew I was involved in real estate and when his mother wanted to sell off her investment property he sent her my way.  I picked up three units for a great price.  I never expected to get a financial benefit out of that relationship, but eventually did.

My experience with networking is that you will meet like minded individuals and over a period of time you will get to know each other better and eventually some deal will come along that works for the both of you and you will pull the trigger.  Again, you are cultivating (meaning it takes time) relationships.  If you show up looking to make deal that evening it comes off bad, IMO.

Jonathan Twombly · Answer

Real estate brokers.

Aaron Taylor · Answer

I think the answer is yes but I wouldn't expect it to pay off right away.  I've actually sent a couple things another investor's way recently because they didn't quite fit in the scope of work I was looking for (meaning I didn't have time to take them on).  You may find the same thing.  If you can find deals that don't fit your scope but may fit someone else's, then that might be a good starting point for a relationship.

I also try and pay it forward on people who might sell but aren't sure.  Like I talked with a guy and his 93 year old mom about a property they have owned for like 54 years, it was her's and they were thinking about selling.  I told them that while I would like to buy it, it would probably be a lot smarter to hold onto it for the rest of her life, that way the cost basis would raise up at that point and you'd pay no taxes.  They were unaware of that and thanked me for my honesty...so even though it cost me a deal, maybe that social networking will eventually come back around (not expecting it to though).  Either way it's nice to interact with people, and you never know what might come around.

Rick Pozos · Answer

Google. Real Estate networking or Real Estate Group San Antonio

Go to meetup.com

Look at the profiles of people that post on here from San Antonio, take them to a great lunch and ask them in person what they do.

Aaron Bihl · Answer

@James M.  there are plenty of meetups in and around San Antonio.  You could easily go to 1-2 a week if you really wanted.  Rick’s group is a good one, my broker along with Texas quest capital have one the first Tuesday of the month.

I occasionally go to the Alamo REIA, it’s a big bigger and harder to meet folks because of the setting but it’s a solid group.

And to touch on your questions about wholesalers keeping all the good deals.   Yes to some extent his happens, which is probably a good thing because this can help you find out who is actually doing deals.

Also, you’ll find that investors wholesale properties for a number of reasons.  They may have too many projects going on, it may not be in the area of town they like to do flips or own rentals, or simply it’s quicker to get in and out.

So in short, yes investors probably keep some deals for themselves but that doesn’t mean the owns they choose to wholesale are bad deals.

Jonathan Twombly · Answer

Yes, and it even works with brokers. Brokers tend to give their best deals to the people they know, like and trust.  Those deals never hit the websites because they are already gone to those favored clients.  The only way to get on those favored clients lists is to talk with the brokers, get to know them, become friends with them.The added advantage is that, the better you get to know them, the more likely they are to believe you can close.  It's just human nature - we tend to attribute characteristics we like to people we like.

Paul Haughton · Answer

Networking is huge. I have found that it takes time to build the trust and reputation that bring in the really lucrative deals. But diligent effort over time will yield profitable results.

James M. · Answer

@Rick Pozos that makes a lot of sense and is my intention is to meet others who are like minded. I suppose I was approaching the mindset a bit different initially. Truth be told I didn't know how one of these meetups worked, and I suppose as well they are all different. I'll look up the Alamo investors group and I'm keeping my eye open on Bigger Pockets for meet ups. Is there any other recommended sources to find groups in my area that you know of?

James M. · Answer

All the logical places indeed. Thank you @Rick Pozos I may direct message you in the future, looking over your profile seems perhaps you have an open group? Would love to meet others. Perhaps next time you folks meet up I'll join. I'm going to try and find others as well. My initial post seems counter intuitive now that I've discussed it with you folks, but that is why I'm here! :)

All great responses. Thank you all.

Is Finding Better Deals Through Networking Possible?

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