Follow Us on Social Media

email icon rss icon linked.in icon google plus icon twitter icon facebook icon

The Power of Your Network in Real Estate

by Michael Blank on August 11, 2014 · 6 comments

  
Real Estate Networking

I was chatting with Chris Winterhalter (BP profile), a successful apartment building investor and active participant in the Bigger Pockets forums.

He talked about some of the advances he made in his investing career, and many of them were tied to people he met. In fact, he met his current business partner at a real estate investing conference. That partner owned a commercial construction company and wanted to expand into apartment buildings. Chris was a wholesaler/flipper and wanted to get into apartments. A perfect match.

This conversation made me reflect on what networking has accomplished in my career but also made me think about what I could be better.

We Can Accomplish More with Others, Then We Can Accomplish on Our Own!

I had an apartment building under contract, due diligence was completed, the appraisal was completed and we were 14 days away from closing.

Everything looked good. Until I got a call from the loan underwriter who informed me that the local bank I was working with changed their mind about the deal. “The loan committee didn’t like the area the building was in”, was all he said.

Wow, really ?!? Two weeks before closing?

Fortunately I had been working with 4 other lenders, got them to present me with term sheets, and picked the best one. The second best one looked pretty good at this point! Sure enough, that bank jumped on it, we transferred the appraisal and they closed on it in 23 days.

Related: Who Are You Recruiting for Your Team?

I would have been stuck had I not been networking with other brokers.

The Power of Your Network

While I get the majority of deal flow from commercial real estate brokers, occasionally I get one from someone in my network.

One time I got a smaller building through a wholesaler from whom I had previously bought houses to flip. He knew another wholesaler who had this build under contract and was looking to sell the contract. The deal didn’t work out, but it looked promising for a while.

I do better when I have mentors. They give me confidence I didn’t have before. They might say “buying a 100 unit isn’t so bad. So you need to raise $1M, so what? It’s not that hard, I know you can do it!” Even if they don’t directly help, they’re confidence in me lets me expand my own comfort zone so that I, too, start believing I can do it.

I can Improve with My Networking

My friend Jonathan is my model in what it means to be a good networker: he’s constantly introducing people to each other.

He spends time with people, he calls them regularly. He asks you what you’re looking for and then keeps his eyes for something that could help you. He doesn’t ask “what’s in it for me?” but “what can I do to help you?”

I’m outgoing enough, but I’m not intentional enough with networking. I need to be more like Jonathan and find ways I can help others in my sphere of influence each and every day.

Related: top Ineffective Networking: Tips for Investors on Making Connections in 2013

The lesson here is that we need to be more intentional with our networking. Put it on your list each week. Make that phone call, schedule that lunch, follow up with conversations, attend that investment meeting. Then figure out how you can help people achieve what they’re striving for.

What do you do to network with others? What can you do better?

Be sure to leave your comments below!

Email *
  



{ 6 comments… read them below or add one }

Marshall Downs August 12, 2014 at 8:16 pm

Michael – excellent article and well timed for me. Please, let me introduce myself, Marshall Downs, real estate investor working to become multi family investor. I have experience in development and construction having worked for a non-profit developer. We did tax credit projects and used other subsidy programs along with traditional financing so I have a decent resume and am now working to get into my own first large apartment project as a syndicator.

Anyway, loved the article and in the process of raising funds will now be far more intentional about tapping into my existing network to find investors.

I’ll look for your next blog!

Reply

Michael Blank August 13, 2014 at 1:51 pm

Thanks Marshall … I look forward to staying in touch !

Reply

Sharon Vornholt August 13, 2014 at 4:09 pm

Michael –

I love this article. So many real estate investors just don’t understand the power of networking. It is a great way to build your business. You just never know how folks will be able to help you solve a problem, connect you with resources you need or how you might be able to do the same thing for them until you really include networking events in your business. I am also a big fan of mastermind groups. Like you said, many minds are better than one.

Sharon

Reply

Naima Lynah August 13, 2014 at 7:58 pm

Hi Michael:

I really enjoyed this article. It was insightful and packed with good tips. Many times people feel out of place or are not sure where to start in Networking. I’ve been to many Meetup affairs in my area that have left me feeling a bit flat about networking. Reading this article has given me much insight. Thanks again!

Reply

Michael Blank August 14, 2014 at 7:22 am

Awesome, glad it was helpful …!

Reply

Rachel August 16, 2014 at 8:45 pm

Another solid article! I’m a huge fan of networking but I’ve been learning a hard lesson of filling my contact list with a serious network of friends of friends of friends as oppose to just bodies!
You’re example of Jonathan and being more intentional hits the nail on the head.
Thank you!

Reply

Leave a Comment

Comment Policy:

• Use your real name and only your name in the field designated for your name.
• No keywords allowed as anchor text in the name or comment fields.
• No signature links allowed under your comments
• You may use links in the body of your comment, but it must be relevant to the discussion at hand, and not merely be some promotional link.
• We will have NO reservations about deleting your content if we feel you are posting merely to get a link without adding value to our discussion.
If you add value, but still post keywords, we'll use your comment, but remove your link and keywords.
• For more information about acceptable practice, see our site rules.

Want your photo to appear next to your comments? Set up your Gravatar today.

Previous post:

Next post: