Relationships Come Before Deals and Transactions

I'm not the best networker. I'm okay with it. I like one on one situations. I like to survey the room and observe several meetings before I identify the person that I would like to get to know. I've always been quality over quantity any day. I'm also not big on small talk. I guess it's the introvert in me. 

I met this owner about a year ago. I solicited him to rent his rental and he agreed. At the time he only had two properties and only one was vacant. In the dead of winter I was able to luckily secure him a pretty good tenant fairly quickly. I probably didn't keep in touch with him as much as I should have throughout the lease term. My downfall. 

He contacted me about two months ago, wondering if I knew any property managers. I connected him to two, then I asked him if he was ever interested in purchasing any more properties; he said yes. I gave him a standard buyer sheet to fill out. He said that he would fill it out but he offered to meet in person. 

I could have sent out the buyer sheet, a few more email exchanges and maybe a phone call and that could have been the end of it. But I offered to sit with him and discuss his investing goals. We sat at Starbucks for approximately 2 hours and 15 minutes. 

I'm so glad that I did. I got to know more about him, his beliefs, his goals, a bit about his personal life, we joked and laugh about all sorts of issues. I got a better understanding of who this buyer was. He also got a better understanding of who I was. He told me I was too formal (we laughed about it). He said that relationships always come before business because as we all know it people only do business with people they get along with and like. 

I presented him with a property that I was able to get under contract (with the help of a more seasoned investor). He asked me all sorts of questions that I didn't think to ask. He told me as an investor his decisions are guided by his cash flow statement which he has been keeping track of while updating it regularly for the past 5 years. Everything from rents, utilities, taxes to items that need to be repaired. He said, "When you present a deal this is what you need to also present the investor with." 

It made me realize how I needed to separate myself from the amateurs. I was too "loosey goosey" with my presentation. I was reminded that every investor needs to anticipate risks and rewards. I am a newbie wholesaler and up until this point everything seemed so abstract: everything felt very clear at that moment. He said, "Look at the property as if you were buying it." 

Because of that meeting and because of the connection I made with this buyer, he is looking to purchase multiple properties. I value that experience. We all want deals and of course, we want to reach our income goals. I don't fault anyone for that. But the basics are the basics. Relationships are key and are very much tied into everything that you do. When you have a strong relationship with a fellow investor, you tend to look at deals a bit more closely and be more diligent. When that connection is made you go out of your way to make sure that every deal that lands on everyones table is a deal that is just as valuable as the relationship that you current have.