392: Who Do You Know?

SHOW NOTES FOR EPISODE 392: WHO DO YOU KNOW?

I really consider it a true privilege and honor that I get to interview some of the most fascinating and successful people on my podcast.  On my podcast, one of the questions I always ask my guests is “If something devastating happened and you lost absolutely everything you had, except $1,000 in cash, knowing what you know now, how would you use the $1,000 to help you rebuild your real estate business?”

Many of the most experienced and successful guests, when answering this question, were confident in one thing, they emphatically said “I wouldn’t even need the $1,000.”  But, why not?  Wouldn’t  you have to invest something to start to grow your business again???

Sure… they may say, “OK, I may need to use the $1,000 to buy a phone, laptop, Uber, money for coffee or lunch… but that would not be the main investment.

The real investment doesn’t require money.  It requires TIME

Because really, the only thing they need is the right amount of TIME with the right person!

And that right person could fall into two categories:

1. A person you know
2. A person you don’t know

People You Know

Now, if you have been in business for a while AND you’ve been fairly successful, chances are you know people who have worked with you or have helped you in the past.

My guests said they would first put together a plan or find an investment and then share the plan or investment with the person in a one-on-one meeting.  They would, in turn, provide an “opportunity” for that person to invest the collateral for a venture.  It could be to purchase a property, fund the re-start-up of the business or something else that would produce a good return for the investor!

The guests I asked this question just knew that, when you know the right people, they can help you to get to that next step because they had all been there and done that and they recognized that real estate is really more about people than anything else.  And when you know the right people they can help you get where you need to go.  You ALWAYS need someone in the real estate equation, whether it’s a banker, lawyer, investor, buyer, seller or potential tenant, people are the critical component to success in real estate.

Why would this person want to help you?

• First, they already know and hopefully trust you
• They know that you can do what you say you can
• And they know your track record and that you will not only return their initial investment, but that there would be a decent upside as well!

People You Don’t Know

Again, if you’ve been a real estate investor for a considerable period of time, you are accustomed to presenting ideas, investments, projects and opportunities.  It’s what we do.

My guests also referenced setting up meetings with people they don’t know.  Why?

• To get yourself to a place of success, you probably had to pitch A LOT of people you didn’t know
• You already know who the right people are because you’ve seen the results and know who can help and who can’t
• You know the pitch
• You know the buttons to push
• You also know the needs of the people you’re pitching
• All you need is the opportunity to get in front of them and get them to listen

The Key is Always People

Now these are the responses from SUCCESSFUL real estate investors who realized that their success depended as much on others as themselves

So this is my question for you?  Do you know the people you would need to approach to rebuild your business OR to just succeed?  If you lost everything, would you have that person who would meet with you at Starbucks knowing that there would be an 80% chance that that person would help you get to that next step?

And if you answer isn’t an emphatic “Yes!”  Then why not????

This doesn’t just pertain to desperate situations where your survival depends on it!  This is an integral part of real estate investing!  For success in real estate, they say location, location, location… and that’s very true!!!!  But it’s also people. people, people or relationships, relationships, relationships!

If you have taken the time to create a strategic real estate investment plan, how much of that plan is devoted to developing critical relationships???  How much of you plan is devoted to creating the kinds of relationships that, if you lost everything, you could pick up the phone, set up a meeting and they would join with you in rebuilding your business???

Now these relationships can be with many different people…

Who do You Need to Know?

• Potential Lenders
  • Bankers
  • Mortgage brokers
  • Private money lenders
  • Hard money lenders
  • Family offices
• Other Investors
  • Someone you can present a deal to who can give you that boost:
    • Partner
    • Co-sponsor
    • They can lend to you
    • They could buy it from you (wholesale)
  • Deal Sources
    • Attorneys
    • Accountants
    • Realtors/Agents/Brokers
    • Wholesalers
    • List Brokers
    • County Clerks
    • Flippers
    • Marketers
    • Social Media Experts
  • A person with a need you can meet
    • It’s not just knowing the right people, even more, it’s about understanding THE NEEDS of these people
    • Solving a need or want
    • A few guests have put it this way when asked how they would rebuild their business: “I would find someone with a need or problem to solve and I would come up with a solution that they would gladly pay me for”  Examples
      • A person with a tax lien on their house that will cause them to lose their home
      • A person with a retirement nest egg that needs at least a 10% yield to support themselves in retirement
      • An fellow investor who is looking for a certain property that you can find for them

You see, knowing the right people is important.  But it’s not just KNOWING the right people but, EVEN MORE, it’s about UNDERSTANDING their needs and knowing how to use your expertise to SOLVE their problem or need!

Well, that’s it for today!

DISCLAIMER:  Many of the above strategies take knowledge and have a higher degree of risk.  You need to do your research and/or work with someone who is experienced to reduce your risk.

IF YOU LIKED THIS PODCAST, we would love if you would go to iTunes, Stitcher, GooglePlay, iHeartRADIO and Spotify and Subscribe, Rate & Review our podcast.  This will greatly help in sharing this podcast with others seeking to learn real estate investing as aCBRE means to achieve a successful retirement.

Check out our other podcasts at olddawgsreinetwork.com.

Get a FREE copy of our 3-Minute Rental Property Analyzer at olddawgsreinetwork.com.

Additional Episode Sponsor: Meno Studio – menostudio777@gmail.com