The Power Of Networking
The last week has been a little slow (only one house purchased and one sold) so I figured I would write about the POWER of networking. For those of you who follow my blog or know me personally, you know that the majority of the deals I have done come from networking in one way or another. Let’s go through some of the people I have met, some of the ways I have met them, and the deals they have been involved in. I will keep the names out to protect the innocent…
I have met a lot of other investors, agents, and lenders on a website called Bigger Pockets (BP). For those of you who don’t know it, you need to! This is an online networking site and message board where you can ask questions, connect with other real estate investors, and even post properties for sale. They do a weekly podcast, have blogs on the site, rental and flip calculators, and do frequent online webinars. This site is incredible and if you want to get started in real estate, this is a great place to start.
A local real estate investors club is a great place to network and meet other investors, agents, contractors, lenders, buyers, etc… I have met a lot of great people at my local REIA and have recently organized a monthly networking meeting of my own in Pace, FL. Some of these meetings cost money and others are free. Some pitch products and try to sell you things and other are pure networking. These meetings are some of the best places to network because a lot of the people who attend are actively investing in your local market. There are always new people at the meetings but it should be obvious who is really doing deals and who isn’t. The active folks are usually in a group talking about the deals they have going on and looking to find a way they can work together to make a profit. There is also a group of those who come to the meetings each month but aren’t actually doing anything. Pick your circle wisely because remember, you are the average of the 5 people you spend the most time with…
There are a ton of other groups on Meet Up, which will allow networking for a real estate investor. I am so busy with the two monthly networking meetings I attend that I just don’t have the time to branch out to these right now. But I will in the future and I’m sure they will be fruitful.
I post a lot of what I do on Facebook so other friends and family members can follow along with what I am doing. You would be shocked at who has contacted me from this blog and my Facebook posts. I am always surprised to see who I know out there who is interested in getting started in real estate or who is also investing. I would have had no idea if I hadn’t put myself out there through Facebook or my blog.
The business card is a great way to network. It isn’t just the business card but it is also your “elevator pitch.” This is the 15 second 35k foot view description of your business that you tell someone who asks you about what you do. I don’t know if pitch is the right word but just a quick statement of what you are doing these days to get others interested or want to ask more. Each time I tell someone what I’m doing, it seems that they know someone who may need my services or they want to connect themselves. The more you talk about what you are doing, the more networking opportunities you will have. Always follow up your discussion with, “do you know anyone who may benefit from what I’m doing?”
I have written about this in previous posts, but joining a mastermind group where you surround yourself with other successful investors is also a great way to network. These groups are designed to rocket your business to the next level by sharing what everyone else is doing and combining the knowledge that everyone has together. I have met a ton of great contacts this way and have done deals with a few of them already.
- I met a real estate agent who helped me buy a rental here in Pace, FL off the HUD website. (Bigger Pockets)
- I started a meet up group that meets once a month in Pace and I advertise it to other investors online. The last meeting had about 25 people there. (Bigger Pockets)
- On Tuesday, I close on a cash out refinance for one of my rentals properties with a lender I found on Bigger Pockets.
- I met my lead manager / assistant at a REIA meeting in Pensacola and she is killing it! (REIA)
- I met a lot of military investors at my local REIA. We meet once a month and collaborate on a lot of deals (listed below).
- I lend some of my IRA money to one of the military guys I met at the local REIA meeting who uses it to flip houses with.
- I lend the rest of my IRA money to another local flipper I met at our local REIA meeting.
- I met one of my private lenders at our local REIA meeting.
- I have networked with private lenders, who would have never known what I was doing if I didn’t post about my business on Facebook.
- I met one of my joint venture partners in my Mastermind Group.
- I have lent out private money to other investors in my Mastermind Group.
- I met the real estate agent who sells all of my renovation projects at the local REIA meeting.
- I just sold a property to one of the investors I met at my local REIA meeting.
- I am doing a few projects with a contractor I met at my REIA club.
- I just signed a contract today for a property that I am partnering up with 2 other investors from my local REIA.
This is a list of 15 different deals that only would have come my way by networking. Is that enough for you to realize the value in it? If not, what will it take? Keep in mind, this is only over the last year!
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If you know anyone who could use my services or may like to become an investor in my business, please pass my information on. Thank you all for reading and reach out to me if you’re looking to get started.