SS172: The Power of Networking in Real Estate Investing

SS172 The Power of Networking in Real Estate Investing

Networking plays a crucial role in the success of any real estate investor. In this episode, Charles discusses the benefits of networking as a real estate investor.

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Talking Points:

  • Networking is a very powerful tool for real estate investors. One of the most important things you can do to rapidly grow your real estate business is network. Over the years, networking has connected me to valuable opportunities, partnerships, contacts, and insight. Long-term relationships are vital to any real estate investor. Some of the most successful real estate investors I know are also great networkers.
  • Here are some ways in which networking has played an essential role in my real estate investing career and how it can help you grow your business:
  • Access to Deals: Networking allows investors to tap into a broader pool of potential deals. Through connections with other investors, real estate agents, and industry professionals, investors can access off-market opportunities and exclusive deals that may not be readily available to the general public. I remember years back, I met for coffee with a new broker that I had only spoken with over the phone and through email, and after an hour meeting, he gave me access to a deal that he had not listed yet but was getting ready to list. I can’t tell you the number of times a real estate investor has told me about a recent deal they have done, and when asked how they sourced the deal, they say it came from a partner or broker they had worked with for years. You also never know what deals someone is coming across if you do not network with them. Most real estate investors stick to 1 or 2 types of real estate; what happens if something comes to them that does not fit their buy box?
  • Partnerships and Joint Ventures: Real estate projects require significant capital, expertise, and resources. Networking allows investors to connect with potential partners or form joint ventures. Collaborating with others can help mitigate risks, leverage each other’s strengths, and undertake larger and more profitable projects. This is especially important when syndicating properties and getting involved in larger deals where multiple people and teams are required to close on the property and successfully execute the business plan.
  • Market Insights: Being part of a network exposes investors to valuable market insights. Discussions with peers, industry experts, and professionals can provide information about market trends, emerging opportunities, and potential risks. Staying informed about the market is crucial for making informed investment decisions. This insight is available not only from other real estate investors but also from others in or around the real estate business. Maybe you are buying a property, and you speak to a contractor who worked on that property or a landlord who owns several properties in that area. In most cases, this type of insight is not public knowledge, giving you an advantage over other investors.
  • Learning and Education: Networking events, seminars, and conferences offer opportunities for real estate investors to learn from experienced individuals. Engaging with others in the field allows for exchanging knowledge, strategies, and best practices. Learning from both the successes and failures of others can contribute to one’s growth as an investor.
  • Building Credibility: Establishing a strong network can enhance an investor’s credibility within the industry. Positive interactions with other professionals and successful collaborations contribute to a positive reputation. Credibility is essential when seeking financing, negotiating deals, or attracting potential partners. A few years back, I was at a real estate event, having lunch with someone I knew, and during the conversation, they said someone had asked them about me earlier, and months later, we collaborated on a project together. People decide about doing business with you from the company you keep and what others say about you. Establishing a strong network can grow your credibility with future partners and investors.
  • Access to Professionals: Real estate investing involves working with various professionals such as attorneys, accountants, property managers, and contractors. A strong network provides access to a reliable pool of professionals who can offer advice, services, and support throughout the investment process. If you have listened to this show for a while, you know that I firmly believe the best way to find vendors, contractors, and property managers is by a referral from another investor. When you have a network of other investors, you can contact them when you need a referral.
  • Deal Financing: Networking can also play a role in securing financing for real estate deals. Connecting with lenders, private investors, or financial institutions through your network increases the chances of finding suitable financing options for different projects. Deal financing has many more moving parts when the deals get bigger. To close, you might need several people to sign on the loan, show experience, and show liquidity to be approved. Every time I have found these individuals, it was from networking.
  • Where should you network?
    • Local real estate meetups
    • Local business networking events
    • Investment clubs
    • Real estate conferences, big and small
  • You can meet people online to network with. Still, real networking and relationship building is done face-to-face, and growing and nurturing a strong network is an ongoing process that can significantly contribute to your success as a real estate investor.

Transcript:

Charles:
Welcome to Strategy Saturday; I’m Charles Carillo, and today we’re going to be discussing the power of networking and real estate investing.

Charles:
Have you always wanted to invest in real estate, but didn’t have the time, didn’t know where to find the deals, couldn’t get the funding and didn’t want tenants calling you. Since 2006, I’ve been buying income producing properties and great locations that provide us with consistent passive income. While we wait for appreciation in the future and take advantage of tax laws while we’re waiting and unlike your financial advisor, we invest alongside our investors in every property we purchase. Check out to investwithharborside.com. If you like the idea of investing real estate, if you like the idea of passive income partner with us at investwithharborside.com, that’s investwithharborside.com.

Charles:
One of the most important things you can do to rapidly grow your real estate investing business is network. Over the years, networking has connected me to valuable opportunities, partnerships, contacts, and insight. Long-Term relationships are vital to any real estate investor. Some of the most successful real estate investors I know are also great networkers. Here are some of the ways in which networking has played an essential role in my real estate investing career and how it can help you grow your business. Number one is access to deals. Networking allows investors to tap into a broader pool of potential deals through connections with other investors, real estate agents and industry professionals. Investors can access off market opportunities and exclusive deals that may not be readily available to the general public. I remember years back I met for coffee with a new broker that I’d only spoken with over the phone and through email and after an hour meeting, he gave me access to a deal that had, he had not even listed yet, but was getting ready to list.

Charles:
And I can’t tell you the number of times a real estate investor has told me about a recent deal they have done. And when asked how they sourced a deal, they say it came from a partner or broker that they’d worked with for years. You also never know what deal someone is coming across if you do not network with them. Most real estate investors stick to one or two types of real estate and strategy. What happens if something comes to them that does not fit into that buy box? Number two is partnerships. In joint ventures, real estate projects require a significant capital expertise and resources. Networking allows investors to connect with potential partners or form joint ventures. Collaborating with others can help mitigate risks, leverage each other’s strengths, and undertake larger and more profitable projects. This is especially important when syndicating properties and getting involved in larger deals where multiple people and teams are required to close on the property and successfully execute the business.

Charles:
Plan three would be market insights being part of a network exposes investors to valuable market insights. Discussions with peers, industry experts and professionals can provide information about market trends, emerging opportunities and potential risks. Staying informed about the market is crucial for making informed investment decisions. This insight is available not only from real estate investors, but also from others in and around the real estate business. Maybe you are buying a property and you speak to a contractor who worked on that property or a landlord who own several properties in that area. In most cases, this type of insight is not public knowledge, giving you an advantage over other investors. Four is learning and education. Networking events, seminars and conferences offer opportunities for real estate investors to learn from. Experiencing individuals engaging with others in the field allows for exchanging knowledge, strategies and best practices. Learning from both the successes and failures of others can contribute to one’s own growth as an investor.

Charles:
Five is building credibility. So establishing a strong network can enhance an investor’s credibility within the industry and positive interaction with other professionals and successful collaborations contribute to a positive reputation. Credibility is essential when seeking financing, negotiating deals, or attracting potential partners. A few years back I was at a real estate investing event having lunch with someone I knew and during the conversation they said someone had asked me, asked about me earlier on, and months later I actually collaborated with that person on a project. Together people decide about doing business with you from the company you keep and what others say about you establishing a strong networking, grow your credibility with future partners and investors. Six is access to professionals. Real estate investing involves in working with various professionals such as attorneys, accountants, property managers, and contractors. A strong network provides access to a reliable pool of professionals who can offer advice, services, and support throughout the investment process.

Charles:
If you have listened to this show for a while, you know that I firmly believe the best way to find vendors, contractors, and property managers is by referral from another investor. When you have a network of other investors, you can contact them when you need a referral. Seven is deal financing. Networking can also play a role in securing financing for real estate deals. Thinking with lenders, private investors or financial institutions through your network has the ability of finding suitable financing options for different projects you may have. And deal financing has many more moving parts. When the deals get bigger to close, you might need several people to sign on a loan show experience and show liquidity to be approved. Every time I have found these individuals, it was from networking. So where should you really network? You could do local real estate meetups, local business networking events, investment clubs, real estate conferences, and both big and small. And you can meet people online to network with still real networking and relationship building is done. Face-To-Face and growing and nurturing a strong network is an ongoing process that can significantly contribute to the success of you as a real estate investor. So I hope you enjoyed. Please remember to rate, review, subscribe, submit comments and potential show topics at Global Investors Podcast. If you’re interested in actively investing in real estate, please check out our courses and mentoring programs@syndicationsuperstars.com. That is syndication superstars.com. Look forward to two more episodes next week. See you then.

Announcer:
Nothing in this episode should be considered specific, personal or professional advice. Any investment opportunities mentioned on this podcast are limited to accredited investors. Any investments will only be made with proper disclosure, subscription documentation, and are subject to all applicable laws. Please consult an appropriate tax legal, real estate, financial or business professional for individualized advice. Opinions of guests are their own information is not guaranteed. All investment strategies have the potential for profit or loss. The host is operating on behalf of Syndication Superstar, LLC, exclusively.

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