The Power of Networking

Networking is often overlooked by many investors, especially newer investors spending all of their time learning about real estate and how they can get started. When I started out, I was so focused on learning how to wholesale real estate and setting up my new business that I was forgetting to reach out to investors with real experience. Do not make the same mistake I did. In this post, I’ll explain how networking is a crucial part of any real estate business and why you should build you network as much as possible.

Your Network = Your Networth

We all hear this a lot, but it is absolutely true. Real estate is a relationship business. Those who spend the time speaking with other investors have a huge advantage over those who are more passive when speaking with people. You must go out of your way to meet new people and expand your relationships, especially with those who are experienced veterans. They can really help propel your business to the next level.

At first, I failed to make an effort to go to all the free networking events in my area because I felt they would be a waste of time. One investor on BiggerPockets reached out to me and said I should come to an event. He was the keynote speaker and thought I would really benefit from his lesson. He was right! At my first REIA meeting, I met a local lender who finances deals for newer investors and a couple buyers who I could market my properties to. To this day, that investor is one of my main buyers and mentors and is teaching me how to build a rehab and rental business. It’s a mutually beneficial relationship that was created through networking.

Building a Team

It’s all about who you know. That statement is very true in real estate. One of the most powerful things networking does is create a team which is your investing business. Without a team, you have no business and you probably don’t do any deals. The way to build a team is to meet as many real estate professionals as possible. The relationship I mentioned above served as a catalyst for my business because he introduced me to his attorney and some of his cash buyers. With these relationships, I could now successfully complete a deal.

Along with those team members, I met a CPA, real estate agents, a general contractor, lenders, and a few other specialists who I consider part of my investing business. Without these people, I would not be able to scale my business and take advantage of multiple profit centers. How did I meet these professionals? You got it. All through networking. If you aren’t talking to someone new every day, you’re missing out. Those who focus on building relationships every day are going to have a serious advantage over those who are stagnant. Actionable tip: meet one new real estate professional everyday. Make sure you’re offering something to them as well to make the relationship mutually beneficial.

Leverage

Any successful investing business really focuses on the use of leveraging people, time and money. This is not to say that you should “use” people. You should treat people with a genuine respect, not only as a means to an end. Leverage is a great tool anyone can use. Instead of using your own cash to fund a deal, you can use other people’s money to scale and grow quicker. You can use relationships to connect with new people in their network or for a certain project. A basic example would be utilizing a general contractor’s time to manage a project instead of using your own time to complete the work. They have the expertize and you can focus on other revenue-producing activities that would help your business the most, based on your skill set.

Based on the relationships I have made and cultivated, I recently have gotten calls from multiple real estate professionals in my area asking to work with them. I’m graduating college this May and I have reached out to people in the past and built trust. Now, these professionals want me to work with them full-time or joint venture on certain deals. I’m good at negotiating and being persistent, and they want to leverage my talents in that sense to acquire more property. It’s a good feeling knowing that you have a ton of mutually beneficial relationships to tap into at any time to propel your business. Of course these relationships take time to build trust, but start today because the benefits are endless.

Conclusion

Start networking today. There’s no excuse not to if you are serious about developing a successful investing business. Go out a meet one new person per day and you’ll meet hundreds of people per year. Think about all of the possibilities and positive effects that could have on your business. Cultivate relationships and you will reap the rewards and help out tons of other people as well. Remember to provide some sort of value for the other person, too. Offer to take someone out for lunch or coffee. Most people won’t turn that down. Start going to Meetup.com and sign up for every local REIA event. Gain experience and enjoy the benefits of having a strong network!