Money, Money, Money, Moonnneeeeyyyyy! Mooooonnnneeeeyyyyy!!!!!!

Ironically, the million dollar question in real estate is where do you get the money. It is the topic of webinars, postings, and every conversation I have with other investors. Don’t get me wrong, it is an important component of investing, but it is not the most important.

“To be rich in friends, is to be poor in nothing.” - Lilian Whiting

Whiting’s quote regarding wealth and friends couldn’t be more on point. At the surface it appears it is talking about your life being full, and without need. However, it is so much more than that. It also speaks to the idea of friends being connections. Note, she doesn’t say “acquaintances”, and it’s not just because it is not as poetic as the word “friends”; it is because it emphasizes a deeper relationship. From time to time, I speak with people over the phone from BP, or my dad and I meet people who are interested in partnering with us. Almost every conversation has left us thinking that the person only wanted to get the most information from us to use to their advantage. In the past three years we have only met two people we would actually do a deal with. And both of these individuals are people we have a good relationship with.

In other words, focusing on building relationships (and/or friendships) with individuals in real estate is a better investment than just seeking monetary gains. The opportunities that will open from friendships, commitment, and hardwork are a greater value than any loan you will receive just on your own. Don’t believe me? A little over a year after my father and I started our company, we became very good friends with someone in the industry. One day, we mentioned to him how we would like to use bank financing, sometime in the future, as a means to grow our business. He told us he had a connection with a bank, and in a few days we met this connection, and were able to secure bank financing! Let’s recap: We were able to secure bank financing for rehabs in less than two years in the business because of a friendship!

The next time you want to identify ways to secure funds, remind yourself it is more advantageous to seek connections via friendships, as the opportunities and the funding will inevitably follow. In the end sometimes it’s about the journey, not the destination!