Real estate investment is a people business—everyone knows
that. But, more importantly, it's a networking business.
By that I mean you have to build a network of individuals
who can help you build a secure investment future. By the
same token, you must be prepared to help members of your
network in turn, so they can build their own investment
futures and businesses.
In plain words, it's absolutely necessary to build mutually
beneficial relationships with the people around you in
order to succeed in the investment business.
The purpose of this article is to show you the three levels
of real estate networking and how to build and maintain
relationships within those levels.
Level 1: The Strategists To build an investment career, you
should gather a group of people immediately around you that
make up your "inner circle." These are people whom you
trust completely to offer you sound advice on investments
and other aspects of your life. Members of Level 1 depend
upon your type of investment, but can include:
Mentors Partners Fellow entrepreneurs Real Estate Agents
Contractors, etc.
These are people who think strategically; i.e., they're
always looking ahead to future opportunities while keeping
an eye on the present. If you like to think in military
terms, these are the generals of your investment army.
They're also people willing to help you develop personally
as well as in a business sense. Of course, you should do
the same for them. They'll give you advice and support when
you need it and will expect the same from you. Look to
these individuals to guide you toward the right people and
the right projects. In effect, you want them to open doors
for you into good investments, and you, in turn, will open
doors for them.
Level 2: The Financial People The next level is the one
with all your financial people; e.g., accountants, bankers,
brokers, lenders, tax attorneys, other private investors,
etc. Think of this level as being more tactical than
strategic.
By that, I mean they're involved in every transaction and
give you specific advice on terms of contracts, details of
construction/remodeling, and the like. Again, thinking in
military terms, these are your mid-level officers
(colonels, majors, captains, etc.) who execute your orders.
Level 3: Service People The individuals in this level are
the specialists in your network; i.e., they perform very
specific functions for particular properties. They include
independent contractors like painters, electricians,
inspectors, appraisers, etc.
They're the infantry soldiers of your investment army.
They're on the front lines getting the actual physical work
done. Remember, no investment deal is ever won without
"grunts." So, you want the best and most cost-effective
service people you can find. Treat them well and fairly and
work to develop long-term relationships with them. Such
relationships will pay off in greater profits and fewer
problems. Recommendations for Maintenance of the Three
Levels Keep in regular touch with members of all three
levels to keep communications open. Don't limit
communications to just business matters. Show that you care
about them as individuals by asking about their families,
latest successes, golf scores, etc. even when they're not
involved in one of your deals.
In short, build relationships on a personal as well as a
business level and then maintain those relationships
through regular contact. Share your expertise and
knowledge. This can be something as simple as sending them
an article on their area of business. Or, you can recommend
people or projects you think will fit their particular
business interests, etc.
Treat everyone well and honestly. It's imperative to build
trust on all three levels. Never, ever treat anyone in the
three levels poorly. Believe me, if you mistreat someone,
word will get around faster than the speed of light, and
your business will suffer.
I can't stress enough the importance of building a network.
It's the absolute key to a great investment career! Without
contacts and great relationships, your future in real
estate deals will not be successful or less successful than
you'd like it to be. So, work hard to gather the three
levels of people about you. And, always, always, give back
to the individuals who help you succeed. It's not only the
right thing to do; it's the smartest business decision
you'll ever make.
Key Point: You'll go nowhere in the real estate business
without building a network, so make it a priority to grow
the best one possible.
----------------------------------------------------
Jack Sternberg is a nationally recognized expert on real
estate investment who's been in the business for more than
30 years. Sternberg is the creator of the renowned "Buyers
First" Program. His deals have totaled over $750 million
and he's been to the closing table more than 1,500 times.
For more, visit http://www.askjacksternberg.com
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