How do you gain credibility when you're new?
Real Estate Investor · Los Angeles, CA · Member since 2010 · 123 posts · 8 votes
I am curious as to what you all think. I am assuming I am not the only newbie interested in hearing everyone's opinion on gaining credibility.
I am fairly new to investing, and I am 25yrs old. I spend a lot of time with many other investors on a regular basis, and I want to know what some of the best ways are to gain respect among seasoned investors.
Want credibility and a stellar reputation? Think in terms of one word: INTEGRITY
Becoming known as someone who can be taken at his words begins today. Experience, investment savvy, and the like will come with time. Integrity is something you can have right now. A bad reputation will stick with you forever, so don't get one.
:cool:
Good question Matthew.
For me, I found that just being honest and realizing that it takes a lot of hard work gained a lot of respect from people. I was never cocky and said I want to learn everything in the next 15 minutes. I focused on one strategy (after a while) until I got it, then moved on to the next. I read my books, asked my questions (then I shut up and listened), and kept at it. I'd get depressed when I lost lead, but the next morning was a new day and new lead. I did not care about the money as much as doing my first deal, going through the entire transaction, and learning the basics. I knew the money would come after time.
Put the learning before the money, and you'll get peoples respect.
I think having an understanding of investing is a good start - by reading biggerpockets and trying to learn as much as you can on your own, so that when you ask questions they are a little deeper and more thought out than, "how do I become rich" or "what is flipping" etc...
Also I think having a business plan and a goal in mind will help people see you actually put time into this and didn't just wake up one day and say I'm going to be an investor help me!
That is what I tried and try to do at least...
Want credibility and a stellar reputation? Think in terms of one word: INTEGRITY
Becoming known as someone who can be taken at his words begins today. Experience, investment savvy, and the like will come with time. Integrity is something you can have right now. A bad reputation will stick with you forever, so don't get one.
:cool:
Exactly what the first 3 replies say
I'm a newbie too,so take what I say with a grain of salt but almost every successful investor I've met... says "Show me your Business Plan"
If you bring that to the table,it shows that you are doing more than just thinking about investing and it gives them an idea of where you are at in your thinking... Be Impeccable with your word...Do what you say you are going to do.. and RUN away from anyone that proposes anything unethical...Guilt by association can haunt you too.
I agree integrity is key! I truly believe in being upfront from the beggining.
My business plan as of now is, I currently own 3 rentals with tenants on land contracts, all set to close in the next 3mo. I'm expecting a 17-22% ROI. I will continue to invest those proceeds back into similar deals here in the midwest.
I have a strong interest in getting into multi-unit buildings, raising there value, then buying up through a 1031 exchange.
This is the cliff notes version. If anyone has any advice it would be greatly appreciated!
Good post. Especially about the investor that does or doesn't have a written plan. This is a business, and no way around the fact. If you want to gamble, you are better off playing the slots. The goal of any good business is to earn referrals through reputation. Reputation is earned with experience and respect. Best wishes.
One tip - Don't ask a lead, or prospect if they will allow you to assign the contract? Big rookie mistake is to not understand assignment is permitted unless specifically denied in your approved contracts.
Matthew:
Thank you for writing out that post. Since I'm also a new investor it's helped me to gain some insight into what it will take to form networks with quality investors within the investing community. Keep up to the good posts.
David H.
do what you say you will do...be willing and open to learning...you may not know everything ever..the books on investing may have been wrong...OTOH, let me add to this...do not be afraid to stand up for yourself.people will tryto take advantage of you in this business...i've had several contractors laugh in my face when i tell them what i'll pay or what my other quotes for that job are....don't take it personally.as long as you're not bluffing, you just learned a lesson on who to do business with!! One electrician tried to quote me more than double what another quoted (we're talking 10,000 vs 5,000--huge difference) when I told him, he said if he's only charging 5,000, he's probably only making 1,000 or so after materials and paying his guys....I said, "what the heck are you making off me then?!?!" As long as you're respectful and have a sense of humor, you can get your message across to people and stand up for yourself....this is your business....you're not a child so don't be a doormat..best of luck
I want to thank everyone for their input. I hope that this topic continues to help other newbies.
Thanks a lot for that post Bryan. As a newbie myself, I think it's very important that I watch my back and don't get taken advantage of. This industry has a lot of ins and outs and somebody who hasn't been exposed to doing these kinds of deals can definitely be caught with their pants down. If you're doing business with someone who has mastered the game and they know you're still only trying to learn the rules, it can be very easy for them to try and manipulate you and increase their profits at your expense (as mentioned in the example about the electrician). That is a major reason why I have become a part of BP. You can receive honest help here on anything that you might be questioning. It's also important to always do your homework. Find a mentor, read books, and do due diligence. Get multiple quotes on any job and personally I wouldn't trust anybody until they've actually earned my trust. Once you know who's a friend and who's a foe, you will know who to seek help from and who you should be cautious about.
Lots of good advice here. The one things that is said over and over again is to stay honest. I'm also a beginner and when I am asked how long I have been doing this or how many deals I have closed, I tell them the truth.
I try to downplay my inexperience by aligning myself with more experienced people and riding on their coattails. I say something along the lines of "Well I am still pretty new at this, but I'm working with so-and-so and he has been doing this for X years. He is mentoring me and showing me the ropes.
The other thing I do is learn everything I can so when I'm asked questions I can answer intelligently and honestly. And if I get asked a question I don't know the answer to, I say "You know, I'm not sure. I'll find out and get back to you." And then I find out and get back to them as soon as I can.
The overwhelming majority of people understand that you need to start somewhere and are very understanding about it. After all, they did not get where they are overnight. Everybody has to start somewhere.
absolutely...contractors will respect you and your business more when you stand up to them---not confrontational, just asserting yourself...thsi helps when you call them for repeat business..it's all about the relationships
Whoops! Jumped the gun a little there boys ;-)
I just wanted to confirm the value of relationships in any business, especially this one..in this day and age especially, there are people everywhere trying to take advantage of others..this site is restoring my faith in the REI community and I always learn something new the more that I navigate thru the discussions..
There is NO substitue for HONESTY and INTEGRITY in any endeavor, and the consistent journey to achieve a win/win relationship with others should be at the core of any transaction, right?
The only way to gain respect and to have them help you is to show them your out doing deals and trying hard. You can also try to sell their properties.
Brian Haskins
Listen to what your investors tell you. Do not tell them what they should buy.
It sounds basic but I have wholesalers insisting that something is a deal - even when I know it is not.
Bring a deal - listen to feedback, learn, adapt, bring a better deal next time. If I do not buy a deal but someone else does - do not come back to me and tell me how I "missed out". If the deal is right for me it may be wrong for another person and vice versa. If you "pitch your deal" too hard then how can I know that I can trust you and that you are telling me just the facts and not "selling me" the deal.
Hard sell, not listening, being arrogant, trying to make yourself to look like you know what you do not, these are all things that lose credibility.
Most of all - I need to trust your word and I need to know that your property evaluation is true.
This is good advice. What I've learned to do when I'm discussing a potential deal with an investor is ask them what do they consider a good deal? If they're are using a certain formula to figure the numbers I'll ask for an example, even if I understand it I may ask just to make sure that lines of communication is clear from the jump.
I know you should always be honest about your business, but if you are trying to negotiate a very low price with a motivated seller and they ask you how long you've been doing this, do you think it could hurt your chances of getting the deal done if you tell them it is your first time? They may think you don't know what you're doing and either didn't accurately estimate the value of the house or repairs or that they will be able to get a better offer from someone who has experience and may think the property is worth more. What do you guys think?
Whether you're brand new or a vetran, I think the most important thing to understand in the neg. is your bottom line. Make sure it is withen reason and you're not making yourself look green. Also, always look at the deal from their point of view. If you know what they want you can become creative and figure out what you can give in order to satisfy both parties.
What are your thoughts?
INTEGRITY is vital, but when you're just starting out, what is it? Start with the small things. Read the Sermon on the Mount (in The Bible) starting with Matthew 25:14 - 28 and understand that stewardship over the small things in life is what integrity is all about. Here's how to tell if you have integrity:
1. Have you managed what you have well, or are your finances a complete wreck, and your credit a mess?
Real estate isn't a lottery ticket, it can NOT save you from yourself, and it's not a quick fix for years of laziness, and financial mismanagement.
Quite the contrary- if you've done poorly to this point, the last thing you need is more responsibility. Go clean up your mess and build a foundation upon which to construct your first deal.
2. Are you the best employee where you work? It's rare that a lousy employee will be a good business owner. Stories of under-appreciated entrepreneurial employees who stunk at their jobs but finally made it big are frankly-- bullhockeypucks.
You may well be smarter than your boss. You may have great ideas that are being ignored, but humble yourself and remember- YOU work for HIM. And if you're so smart, why do you suppose that is?
3. Be on time. Are you punctual? This is probably the biggest indicator of character there is. Especially early in a relationship, but really at all times. Now, I realize life happens- there are myriad acceptable excuses for being late. However, when a person is perpetually late- especially to standing appointments, or first appointments I have a huge problem with it. If you are perpetually late- you are not a respecter of other people's time, or my time then it's unlikely we're going to do any business together. It's just the way it is.
4. Do you treat EVERYONE you meet with respect. I like to go dutch for "dates" with prospective JV partners and others. I like to see how they interact with service staff, and even how (or whether or not) they tip. I like to observe how they treat other people, and especially how do they treat people that can't do anything for them? I'm bold and unapologetic about this one. If your prospective partner can't manage to be patient with people, and treat all people with respect regardless of his or her perceived notion of their station in life (and often it is merely perception- it's not where you are, it's where you're going- and that includes the maid) then some people would give you the well-educated, polite interpretation that they must have a poor self-image themselves. I'm saying they're a scumbag. None of us has the right to think of ourselves as better than another purely for reasons of social standing or status. All people deserve respect.
5. How's your general attitude and outlook on life? Are you cheerful, generally optimistic, or are you a doom and gloomer. Of the emotional range- how much time do you spend in the negative emotions- fear, anger, and so on? Do you generally whine and complain a lot?
6. Are you disciplined & well-organized? It's pretty easy to tell. In this area I finally just had to stop pretending it didn't matter & tighten up. Recently I have taken 17 large boxes to Good Will, filed or shredded every scrap of paper, organized my tools, and lost 15 lbs and an inch off my waist. Again this goes to how well I was managing a little so I can take on more.
7. Do you lie, cheat, BS, or cut corners as a way of life? Sad fact is we all lie. I've done it, and you've done it. Perfect example (tell me if this isn't true for all of you): Phone rings. It's so-and-so. You don't want to talk to them so you tell your spouse, or assistant, or whoever picks up the phone, "Tell 'em I'm not here, or I'm in a meeting", right? Wife asks, "Do these pants make me look fat?" or "How do you like my new haircut?" what do you say? You say you're just as sexy as the day we met, and I really like your new magenta dyed hair. I'm not talking about this kind of thing. I'm talking about the sociopaths, the congenital liars. And there are a lot more of these people than my happy-go-lucky, optimistic attitude wants to admit :mrgreen:
8. Do you have a high standard of ethical behavior? Here, I'm talking about the difference between having a standard, or making it up as they go along. I no longer deal with people that live by "situational ethics" and "technicalities". I don't have time to live in the fine print, so if you throw fine print at me in some attempt to slip something past me- or you do the same to others; if you do wrong and justify and rationalize it rather than admit it, and repair the damage- you're out.
to name just a few things... Odds are really good the hidden flaws in your character are already well-known to everyone around you. None of us can hide our true self for long. The good news is that if you go to work on yourself-- that'll be observed, too. Your reputation IS your credibility.
Here's the short version for those that don't like to read: If you want to build your credibility- be credible. In EVERY area of your life.
Great post, Paul. Thorough and well said..
Short update: I first wanted to thank everyone for your advice.
I have found in the past few months the best and quickest way that I have gained respect with other investors has been standing on the shoulders of individuals who already have the reputation you desire.
I have been very fortunate to have the individuals I do coaching me through the details.
I think you always should tell the truth. Do your homework, and have the facts to back up your estimate of the value of the house or repairs. If you get caught in a lie, or exaggeration it can do far more damage to your credibility than telling them it's your first deal.