Real estate investors are always looking for investments that produce great returns. Finding property deals that can produce that return is our quest. Although we use many marketing efforts and techniques to find property, we often overlook one avenue that successful business people use frequently networking.
There are many reasons why people dont network, ranging from, Networking events are just a bunch of people trying to sell to each other to I dont know what to say when I network to Im not very good with people. As a coach, I find many of my clients do not network because they feel un- comfortable with networking, just dont know how valuable networking is and/or they dont know how to network for results!
Why Network?
So, why should you network?
First, networking provides great opportunities to find deals. Chances are high that if you are
always networking, you will meet someone who knows someone in a bad situation that just
might want to give you their house to get out of that situation. Secondly, its an opportunity to find money and/or partners. The stock market has taken a beating and people are looking for other ways to get a decent return on their money. Finally, its also the opportunity to build relationships and find vendors. Who knows, you might even enjoy yourself!
Types of Networking
Formal
Formal networking happens at planned, structured events that are held at a certain place and at a certain time; it is a scheduled event. Many organizations have formal networking events such as chambers of commerce and business associations. Leads groups, which are groups that are designed just for networking and sharing leads, are also a type of formal networking.
Informal
Informal networking can happen anywhere. The concept of informal networking is that you are always networking anywhere you go and with everyone you meet!
As real estate investors we are fortunate when it comes to networking because just about everyone we ever run into lives in a house, knows someone who has a house to sell, who wants to rent or buy a house or even knows someone with money who would love to invest in something besides the stock market. The people we work with, our barbers, our family members, parents at our kids baseball games, the dry cleaner, as well as our professional colleagues are all potential referral sources. Virtually everyone we know is a good networking contact!
Here is an example of informal networking that worked for me! My partner was doing a title search downtown when he began to talk with another individual who was also doing title searches. This person told him about a house he had under contract and could not close on because he didnt have the money and could not get funding. Well, of course, my partner and I helped him out with that deal! Within a week, we completed a double closing and my partner and I sold the house for a $20,000 profit. That $20,000 profit was all a result of informal networking. The investment was small, yet the return was great!
Where to Network
Real Estate Investor Association
Neighborhood Planning Units
Neighborhood Associations
Leads Groups
Chamber of Commerce
Business Associations
City Council Meetings
Civic Associations
Tips on Networking
Dress appropriately for the meeting or event you are attending
Be prepared always have your business cards
Make eye contact
Offer a firm handshake
Introduce yourself and give a description of what you do. (Keep it brief no longer than 30 seconds.)
Be curious about others
Ask open - ended questions
Make notes about your conversation on the back of the contacts business card so you can follow up
Have an objective
What current business needs do you have? Maybe you are looking for a deal or for someone to purchase a deal from you. Know the results you want from any networking opportunity or event before you show up. Here are some ideas:
To increase your buyer list
To increase your vendor list
To make a contact with a mortgage
broker
To find a contractor
To find an attorney
To acquire knowledge on a neighborhood
To find information on the latest laws or tax changes
Have fun!
Much of your networking experience depends on your perspective. My friend, Peg, recently shared a situation with me regarding her networking experiences. Peg says, At first, I went to every networking event trying to tell people about what I do. After a little coaching around perspective, Peg had a shift. She began to be curious about others rather than just being there to tell them about her service. Peg says, After I shifted my perspective in networking, it became enjoyable and I now have much better results when I network!
Follow up!
Following up on contacts that you make via networking is essential to your networking success. Create a system to keep up with your contacts. A notebook that holds business cards, an excel spreadsheet, or a database will assist you in staying organized and following up with contacts. Follow up with an email, a phone call or a note in the mail with a business card to your new contacts. Always keep in mind ways you can help or refer leads to those that you have met via networking you know the old saying, What goes around comes around.
Network every chance you get!
Remember networking can be formal or informal. Set a goal to attend a certain number of formal events each week or each month. Make it a way of life to practice informal networking where ever you go.
Whether you network at formal events or on an informal basis, the most important thing to remember is to grow your business by taking advantage of those networking opportunities that present themselves to you everyday!
Nancy Spivey
The Real Estate Investors Resource for Turning Intentions into Action! SM
Transformation Consultants, Inc.
www.transformit.net
(770) 377-1847
nspivey@transformit.net
Nancy Spivey 2006 |
