Why Networking is the Key to Building a Successful Real Estate Business
In any business, financial backing can be a massive help during the early stages. However, while you may be lucky enough to acquire an influx of cash to get up and running—be it through a bank loan or private investor—it’s the relationships you build that will make the difference between success and failure.
In the real estate game it’s important to foster good relationships from the beginning – preferably before the beginning! By having a trusted team of buyers, lenders, partners and contractors on your side, you’ll not only maximize your profit margins, but will make your job much easier.
Any real estate agent worth their salt will know selling is merely the first step. Never underestimate the power of word of mouth marketing, even in today’s digital world. Your past clients are still the most powerful tool at your disposal. Make sure they’re happy and they’ll not only refer your company in the future, but will come knocking on your door if they’re ever looking to sell up and/or buy again.
Strangely, most real estate agents lose track of their clients after the sale. Don’t make this mistake. People like doing business with people, not faceless companies. A little gift or follow up meeting will go a long way and shows clients that you really do care about their well-being, not just their business.
Property is a huge investment, both in time, money and emotions. More often than not, a seller’s attachment to real estate runs far deeper than their wallet. Therefore, many people in the business will only hand over their property to someone who will take good care of it. While you should always express a desire to sell property at the highest rate and as quickly as possible, it’s important to gauge the personality of your sellers accordingly to ensure you’re meeting their financial and emotional needs.
Building a positive rapport with sellers is crucial. You want to be their first port-of-call when they’re ready to hit the market. In addition, if you can gain their trust they will be more likely to heed your advice, which could lead to greater profits in the future.
Lenders are expert BS detectors. Telling white lies and twisting the truth may look good on paper, but it simply will not work. Lenders have heard every trick in the book and can spot foul play from a mile away. Honesty is key. While it may not get you the deal you hoped for, being straight about your intentions and ability to pay back what you borrow will bode very well for you in the future.
Maintain a professional and personal working relationship with private money lenders and they’ll want to keep on doing business with you. If you meet all your debt and interest payments on time, you’ll demonstrate trustworthiness and may even earn better rates and flexibility in the future.
Never forget about those precious internal relationships and friendships. Your entire team has a valuable role to play and should never feel under appreciated. While the legal department may not directly contribute to sales, they’re an invaluable asset that could make or break a deal. Keep everyone happy and always ensure there’s a positive atmosphere in the workplace.
There’s nothing worse than an office full of people who are treading on eggshells due to disagreements. If you’re just getting into the business, make sure any boundaries and goals are clear and in place before you get started. The last thing you want is a legal dispute further down the line, and losing a precious friend in the process.
This is the trickiest type of relationship to maintain. Contractors and real estate agents/developers will often have differing views, especially when it comes to expenses: there will never be enough money to satisfy their needs, and you’ll be constantly battling to boost efficiency and make savings. If you’re planning on getting into the fix and flip business, it’s great to have a select team of contractors who know and understand your business and intentions.
Once you establish a friendly and trusted relationship with a team of contractors, nurture it with the utmost care and never forget to express appreciation for their efforts. Contracting is difficult, strenuous work, especially when a fast turnaround is required. In addition, a formidable, long-standing relationship could lead to significant discounts in the future.
In conclusion, relationship building is all just part and parcel of the real estate industry. So if you’re not willing to put in the effort on this front, you should have a serious think about whether or not getting into the business is right for you.
We hope you enjoyed the above post in cooperation with Socialnomics!