Real Estate and Relationships: What You Need to Remember

I’m just going to cut to the chase here: in real estate investing, relationships are super important. Actually, let me rephrase that. GOOD relationships are super important.

The most successful investors are the ones who recognize that fact, and work hard to build and maintain good relationships with others. Now, I know plenty of lone wolf investors who like to do everything all on their own. While I find that admirable in many respects, I also do not believe it is very realistic for the vast majority of folks.

When you try to be the solo superhero in investing, it often ends up hurting you in 3 key ways. Here’s how:

Time

Lone wolf investors have zero free time. I’m not exaggerating. How could they? All their waking hours are tied up in investment tasks, like finding and visiting properties; dealing with taxes, contracts, and other paperwork; handling property management; interacting with tenants; marketing their property; and on and on. Owning even just one property can result in several hours’ worth of work each week, so imagine a scenario with several investments.

Money

Time and money are closely linked. Many investors who are using the solo strategy do so because they believe it will save them money. While this may work for some, it’s not the case for the majority of folks because a) they spend SO much time doing a task that it keeps them from other duties, or b) they don’t know what they’re doing, and actually end up wasting money.

Opportunity

Opportunity may also be lost with solo investing. Why? It’s simple. Because you’re operating all alone! You’re not in the loop, you’re not on anyone’s radar, and therefore you’re not going to find out about potential deals.

See how the lone wolf strategy can hurt you? This is why relationship building is so critical in real estate investing. When you make it your business to focus on relationships, you’re setting yourself up for a much smoother - and more successful - journey. You have others who are able to ease some of the burden, whether they’re actively working for you or even just offering advice.

Take property management, for instance. This is a huge time suck, and one that is often underestimated. When you partner with an experienced property management company, not only are you saving yourself hours of work each week, you’re also handing over the duties to people who can get the job done faster, and probably better, than you. They have their own network of contacts who they trust and respect, so you’re getting the best there is. It’s a win for everyone involved - you, the management group, and your tenants.

So get out there and network. Establish new relationships. Cultivate them. Spend time focusing on existing relationships, too. Respect the partnerships that you can form with others, and it will pay you back in the long run.