@Scott Johnson
I am a strong believer in networking, especially as a wholesaler. I feel it is essential to building and maintaining a successful business. Regardless of how many systems you have to produce leads and how hard you work those leads, you simply can't get to them all. Having a network of wholesalers that can work together when needed, is an invaluable resource.
Here is an example of how this effort to network can pay off, in a big way.
In 2005 or 2006, I was just a year into wholesaling and though I was comfortable with what I knew, I was still learning. I had a friend of a friend ask me to help him understand wholesaling, so I did my best. I spent hours telling him all that I knew to that point, and even did a bit of driving to help him spot vacant properties. I never gave any thought about it after it was done.
It was 2 months later I guess, when I get an invite to have a drink and discuss a client that had reached out to him. This client was from out of state and wanted to invest. At the time, he was not working wholesaling full time and wanted to know if I had any houses at the time, as this investor wanted to buy 2 to start with. I had them and we partnered on the deal and each made a few thousand dollars on each property. It was what happened in the following months, that made me realize why it's important to network.
It started with a request from this investor for us to visit California, as he had some friends that wanted to learn more about our process. We were informed that there would be 13 interested parties, at dinner. When we arrived at the restaurant, there was actually 19 people seated. That dinner led to a request by 16 of those investors to find them houses, as quickly as we could. I scrambled to try and find anywhere near 16 properties, but had no luck until I picked up the phone and called another wholesaler, that I had known locally. She told me of a local bank that was holding 32 defaulted notes and agreed to walk me in for a conversation. The deal was struck and 7 days after that, I sold 27 properties in 7 minutes, by email.
That several hours of "free" education, netted all of us high 5 figure assignment fee, each.
Obviously, this is a unique situation and has not even come close to replicating itself, since. However, I don't need good networking to produce at that level, for me to say it's worth it. If I can make a few thousand dollars by answering the phone or an email, sign me up.
As broad as the wholesale community is, when you filter it down to the local levels, it is a small small community. Those that strive to maintain professional relationships, know the value that having someone that can get you what you need, is priceless.
"My advice for folks on networking is give, give, give. You will later receive. But you are really planting these seeds. Some of them will die, and they won't become anything. Many of them will take many, many years before they pay off for you if at all." - Sallie Krawcheck
John
