Investing in People Further Explained

Fix and flip. Turnkey real estate. Syndication. Buy and hold. Multifamily. I could go on, but my point has been made. There are many ways for a real estate investor to invest and I haven’t even scratched the surface with the few I rattled off.

In an era of information, where access to concepts, education and training are one click away. You just an Ask Jeeves search away from being able to begin educating yourself on this type of investment. With social media you can now follow your favorite flip host. Real estate websites provide fantastic forums to meet and learn from like-minded investors. Conferences, training seminars and educational classes are constantly being pitched through radio and television marketing. So what are investors missing with all this information and education at their fingertips?

People.

It’s what I call the blur effect. Our lives are a constant blur. While we are always “connected” whether it’s to our local wifi, social media platform, laptop, smart phone, podcast, blog or TV, a device captures a large portion of our lives. It’s the era we live in, and while there are distinct advantages, I feel one crucial concept is being missed.

People.

What I feel is often overlooked is the fact that real estate is a people business. Whether your dealing with tenants in your newly purchased rental property, or speaking with property owners as a wholesaler, you’re interacting with people. Talking with investors as a fund manager. Yup. People. Negotiating the purchase of a large multifamily. Check. I think you get the point. I know your thinking I’m stating the obvious here, and I am, but sometimes the obvious get's overlooked. Stay tuned for my next blog where I’ll cover why you should try to make money when investing. I’m kidding………maybe. Stop overlooking the obvious!

So what can you do as an investor? What can you do as a business owner or fund manager? Start by making real contact. Email, text, and social media are fantastic ways to connect to your customers or team but make a phone call every now and then. Jump in the car and make a trip to visit a client. Book a lunch. Send a card, I hate cards by the way but my wife loves them. Take the extra minute to appreciate the work and effort of those around you. Take the extra time to “invest” in those on your team and also your clients. It doesn’t take much, but the returns are unmeasurable. 

For those investors that own a single rental property, have a day job, or are passive investors hopefully I have not lost you yet. Your not off the hook because you don’t deal with clients, or think you don’t have team members. Your team is your property manager, tenants, real estate agent, insurance agent, maintenance provider, landscaper, bookkeeper, CPA, attorney and anyone else you come in contact with in relation to your investment property. Now don’t get me wrong, I’m not saying you should go out and become best friends with your landscaper, but have you ever brought them donuts or a cup of coffee? When you put in the extra effort, or make the unexpected gesture your investing. Your investing in those members of your “team”, and again, these investment returns are fantastic.

As a business owner or seasoned investor. Have you ever syndicated a deal and took no profit even if you were due one? As a broker have you ever contributed your commission back to the buyer or seller to put the deal together? Have you bought lunch for your rehab crews or taken them to dinner after finishing a project? Dropped your hard money payments off in person to your lender? I’m not proposing you make your business a nonprofit by any means, and I enjoy making a profit just as much as the next guy, but what I am proposing is put people over a dollar amount. When you focus on people and not about making money a funny thing occurs in your business. You start making money. Customer service is a dying concept in todays “me first” society. Start thinking of ways to put people first in your daily business interactions and see what happens.

I'll end with a reminder when dealing with your team members. When someone on your team has done something great, praise them in public. When correction or coaching needs to be made, always do that in private. 

Happy Investing!