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SHOW NOTES FOR EPISODE 332: MASTERING THE ART OF REAL ESTATE INVESTING NETWORKING
Networking is essential if you want to be a successful real estate investor. Developing and nurturing key relationships is crucial to the longevity and growth of every aspect of real estate investing. In this podcast episode, Bill shares strategic networking tips that will help you to build a strong network that will benefit you and your business for the long term.
Some say RE is all about location, location, location. I say it’s relationships, relationships, relationships!
But where can I meet people to network with (links):
- BiggerPockets.com – Search BP forums or did searches by the name of your city and find people in your area and set up a coffee meet once a week, every other week on once a month
- REIA – Check the director online
- Meetup.com
- Service Clubs – Kiwanis, Rotary, Toastmasters, etc.
- Google search real estate organizations in Your City
If you think you don’t you have to because you only invest out-of-state, think again:
- You need local help (attorney, cpa, bookkeeper, etc.)
- Other people can invest out-of-state
- Anyone can refer you to someone they know that might be able to help you (maybe they grew up in a city you invest in and have lots of contacts there)
The more connections you make through networking, the more opportunities you’ll get. The more opportunities you get, the more likely it is that you’ll be able to build wealth though real estate investing.
In today’s podcast, I’m going to share some key strategic tips to make you a masterful real estate networker.
Tip #1 – It’s About Helping Others
Networking isn’t only about what you can get. It’s also about what you can offer to others. That’s the first real secret you need to learn. The intrinsic nature of networking is sharing, which is what makes it such a beautiful part of doing business. If you can truly understand that the nature of networking is actually an alliance of sharing, you’re well on your way to becoming a good networker.
I remember, years ago, a networking group I belonged to that was very effective. You know how you join a club and it’s not cool to push services, etc and seek leads… well this was the opposite. It was blatantly ONLY for people seeking and giving leads! I think it was “Leads Club” or something like that. It was a group that did not allow any competition. One attorney. One realtor. One beauty shop operator. I was the advertising/PR guy Etc, etc. And it required members to submit referrals to other members at every meeting. In fact, I think it was mandatory, I believe for everyone in the group. It might have also required that you could not receive leads unless you gave leads to others.
But it was very effective. As I went about my daily business, I would meet people who looked like a great referral for someone in the club. I was always ACTIVELY looking for leads for my fellow members all the time.
My point in saying this is that we all need to understand that networking is a two-way process. You need to think, what do I have or who do I know that will help this person out.
When you make contact with someone you want to network with, always ask “How can I help you?” And make a point of writing down what they say. And, more importantly, act on what they say as quickly as possible. When they see that your serious, they will be motivated more to help you out!
Tip #2 – Treat Networking Like an Ongoing Project
The relationships you begin through real estate networking need to be nurtured in order to be effective. Of course, you could just go to one or two networking events, collect a handful of business cards and never go back. But then your pipeline dries out. You need to go to real estate networking events again and again so you have a constant supply of fresh contacts. Every time you attend a real estate networking event, your fellow attendees will be a mix of people you saw last time, along with some new faces in the crowd. You want to both meet the new attendees and make new connections each time.
What many networkers don’t realize is that attending repeatedly also allows you the opportunity to nurture the relationships you’ve already started. Along with connecting with new attendees, reconnect with prior contacts at every event. Share what progress you’ve made on your projects and get updates on others’ projects. Cultivate the relationships through conversation. When you treat it as an ongoing project, your real estate network will not only grow in number, but also in strength.
Tip # 3 – Realize That There’s Always More to Learn
The most successful people in real estate know another secret. They know that there’s always something to learn. No one knows everything. There are so many possible scenarios and situations that there’s always more to glean from others’ experiences; both good and bad. Try to avoid adopting the attitude that you’ve got so many years under your belt that you don’t have to listen anymore to what other people have to say. That’s when you’ll miss out on the good stuff. It’s often worth it to listen to a long speech about something you already know in order to hear a tiny nugget of gold that you never knew before. Stay humble and realize that there’s always more to learn.
Tip #4 – Know That Many Roads Lead to Real Estate
There isn’t just one path to becoming a successful real estate investor. Many possible niches exist in the world of real estate that you may not have considered before. Another secret to effective real estate networking is to widen the field of interest of the networking events you attend. For example, if you’re into something like turnkey rentals in Memphis, don’t limit yourself to attending events that focus only on that niche. If you hear of an event where the field of interest is foreclosures and short sales, go ahead and attend. You’ll meet new people at the very least. You may also gain valuable insight that gives you fresh ideas and strategies that pertain to your own interests. One of the best aspects of real estate is how you can use your own creativity to develop innovative opportunities. When you take the time to explore different real estate niches you just may be inspired.
Tip #5 – Realize That You Aren’t There to Sell
Many people can’t wait to attend real estate networking events so they can run in there and advertise what they’re selling. They see a networking event as a room full of a captive audience. Another secret to keep in mind is, you aren’t there to sell. You’re there to help the real estate community. The community is helped by attendees who share their experiences, knowledge, and resources. Those attendees with a self-serving attitude, or who refuse to share information or resources aren’t really serving the community; they’re serving themselves.
In practical terms, avoid sales pitches at real estate networking events. It’s good to talk about what you do – in fact, that’s helpful to others. Everyone at the event is interested to learn what other attendees are doing to make money in real estate. But it’s counter-productive to dominate the conversation in a way that prevents others from talking about what they do or to force your sales pitch on people.
Tip #6 – Keep Your Promises
At any real estate networking event you attend, you may collect dozens of business cards from people. Make it a practice to write yourself a little note on each card as to what action steps you need to take; whether you told them you’d call in a week, send them some documents or give them the name of your property manager. When you keep your promises to people, you become a reliable source for them. You also gain more validity in their eyes as a valuable contact. And, it’s just the right thing to do. Try to be discreet when making notes for yourself. Develop a shorthand or code system. Follow up on July 31st can become “F/U 7/31.” Send property management company contact info can become an arrow symbol next to “PM info.” Although no one will fault you for making notes, you don’t want to get too wrapped up in note taking, which can isolate you from the conversation. Another trick is to tuck business cards that need follow up action into one pocket and general business cards into another. However you choose to organize yourself though, call when you say you’re going to call and email when you said you were going to email. Keep your promises.
7 Networking Tips For Events
1. Your two most important accessories are a smile and your name badge.
Most networking events provide participants with name badges. This is not the case when you attend a sporting event, a luncheon or most social events. To make meeting new people easier at any event, wear your smile and your name badge. When you spot someone you would like to meet, smile and introduce yourself. If the person doesn’t have a name badge, ask, “And your name is…?” Your name badge not only makes you more approachable, but it also helps people remember your name since they can see your badge throughout your conversation.
2. Target, question and connect.
Bob Burg, the author of “Endless Referrals,” suggests that you focus on meeting only five to six people at any networking event. Your goal is to build a connection with each individual by discovering what matters most to him or her.
Burg’s recommendation is to stand near where they are serving the food and drinks. Next, pay particular attention to the individuals who seem to be the center of a group. These individuals are usually the influencers in the room.
When an influencer eventually walks over to get more food or another drink, put a sincere smile on your face and introduce yourself. Ask for their card, but do not offer to give them your card unless the person asks for it. Follow up with a question about the person or their business. For example, if you introduce yourself as “John Agent from ABC Real Estate,” quickly follow up by asking questions such as:
- “How did you get into your business?”
- “How does your product (or service) differ from that of your competitors?”
- This allows the person to talk about what matters to him or her. More importantly, you will stand out from everyone else whose sole focus is on themselves and their business.
If the person does express an interest in real estate, avoid pitching your services. Instead, turn the tables back around by asking Burg’s most important question: “How would I recognize when someone is a good client for your services?”
Burg’s philosophy is that you earn the right to receive referrals when you have established trust and have demonstrated a willingness to help others build their business first.
3. Meet the wallflowers.
If there are 40 people in the room, how do you determine which five or six you want to meet? Watch for the wallflowers, as well as those standing near the walls. Surprisingly, these individuals often prove to be the organization’s leaders or even the person who wrote the check for the event.
4. Three is an opening; four is even better.
If two people are having a conversation, it’s wise not to interrupt. If there are three or more people in a group, they are probably more in networking mode and more likely to welcome another person to the conversation. If you are part of a group and you see someone standing near you, invite that person to join your conversation. Many people feel awkward about interrupting. They will appreciate your willingness to welcome them into your conversation.
5. Avoid the roving eye.
A major mistake many people make is becoming distracted while they are in a networking conversation. Make sure that your attention is 100 percent focused on the person with whom you are conversing. Avoid looking elsewhere in the room or on your mobile device.
6. Master the art of giving and receiving a compliment.
Whenever possible, give compliments to others. When you do so, dig deeper by asking more about what you complimented. For example, “That was an excellent talk you just gave. How did you become interested in that topic?”
When someone gives you a compliment say, “Thank you.” While this seems obvious, many people brush off compliments from others. A simple acknowledgment is usually the best approach.
7. Know what not to do.
When it comes to networking, keep your focus on others. Avoid telling people, “I’m never too busy for your referrals,” as that puts the focus on you rather than on the other person.
To be more effective in your networking efforts, be curious about what matters to others, strengthen your connection by laser-focusing your attention on your conversational partners, and use a “give-to-get” approach to earn the right to do business with them.
Become a master networker will enable you to get more out of every event you attend and help you build an effective networking that will grow year after year. These tips will also make you a more valuable participant, which will ultimately reward you and your fellow investors.
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