How to Keep an Amazing Reputation in the Real Estate Business

by | BiggerPockets.com

Today I’m talking about the two ways to get (and keep) the best possible reputation.

First, I want to say that I’ve been based in the U.S. for five years now, and during those years, I’ve run various real estate companies. I’ve also been involved in a ton of deals. One thing that stands out in all of my business dealings is my reputation — and my company’s reputation. Both are literally some of the best in the business, and trust me, it’s not easy to keep pristine reputations. So, I’m going to share with you a few tips to do so.

When your reputation is blossoming and is pristine, you don’t have to spend money on marketing, advertising, or lead generation. We get inundated every single day with people who want to work with us, all because they did a quick Google search and saw how positive all of our reviews are.

 

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Know When To Say No

You have to learn how to say no to the good opportunities so that you can say yes to the great ones. Real estate is a long-term play. I always say one or two properties will not get you where you need to be. It’s going to take five, 10, or 15 properties — and it’s going to take five, 10, or 15 years. Your real estate business can’t be a one-night stand; it has to be a marriage. Your vision and goals must align with every person that you consider doing business with. So turn down more business than you actually take on. I’ve been doing this as long as I’ve been in real estate. I’ve learned how to say no to the good opportunities so I can say yes to the great ones. I only want to work with investors who I see eye-to-eye with, who I like, and who my goals align with. By being selective, I minimize the risks of taking someone on board who doesn’t necessarily want to invest with me or invest in my product.

I see a lot of folks who compromise their beliefs (who they are, what their business is supposed to stand for, and what they want for the future) just to make a quick dollar. These people want to make the sale, make the money, and they don’t really care about the client or the future. I think this is wrong. I think you should only work with people who you really want to work with, people with whom your goals align. I promise you, doing this will make sure your reputation stays pristine — and these folks are going to blow a lot of wind up your bum because you will do the right thing by them.

Related: Word of Mouth Marketing: The Completely FREE Way to Find Hidden Deals

Do the Right Thing

This leads me to my second tip, which is to do the bloody right thing. Now, you would not believe how many mistakes I make on a daily basis and how many I’ve made in the past. I’ve lost investors’ money — I admit it — but I always make good on my word. So, if I lose someone’s money, if I make a mistake, I put my hand up. I pay those folks back, or I come out of pocket to cover any losses. I make sure whatever I promised I deliver.

I like to do business on a handshake — on gentleman’s agreement. I don’t believe in contracts because if someone screws you out of $5,000, are you really going to spend three times that amount on legal and filing fees and chasing them in court? Ultimately, that’s just the cost of doing business. The only thing we can go by in today’s day and age is someone’s word. So I make sure I do the absolute right thing when it comes to keeping my word. And when you do right by people — when you make a mistake and you put your hand up and you say you were wrong — they will forgive you. They will forgive you because people understand that not everyone is perfect. In particular, if you only work with people who you really want to work with, then there’s a better chance that they will understand and forgive your mistakes.

Related: The Keys to Branding Your Real Estate Business

Conclusion

I will summarize by saying this: it takes a lifetime to build a reputation, and it only takes five minutes to lose it. You have to protect your reputation with absolutely everything you’ve got. Do the right thing by others, turn down more business than you take on, only work with the people you really want to work with, and I promise you your business will boom. Simply because word of mouth spreads quickly. Trust me, there is nothing better than getting business through word of mouth referrals.

How do you keep your reputation up? I’d love to hear from you below.

About Author

Engelo Rumora

Engelo Rumora “The Real Estate Dingo" is a successful property investor, motivational speaker and serial entrepreneur that quit school at the age of 14 and played professional soccer at 18. He is also a soon to be published author along with becoming a TV personality in his very own real estate house flipping show. To find out more go to engelorumora.com . Engelo Rumora has been involved in over 400 real estate deals and founded five businesses in Ohio. The most successful is Ohio Cashflow, a company that specializes in providing turnkey properties in several Ohio markets. The newest venture is List’n Sell Realty, a real estate brokerage based in Toledo, Ohio and soon to be known as the #1 discount broker in the country.

8 Comments

  1. George Smith

    Excellent article on a topic that is hardly ever discussed. Relationships are everything in any business. It’s amazing how such small gestures of gratitude can get people to understand the genuine relationships that can carry you through any business or better yet life.

  2. Joseph M.

    Small deals may work on a handshake, but doing large deals on a handshake is unnecessarily risky. One of the main purposes of a contract is to formalize the process of getting on the same page. A verbal agreement for some of the more complex debt structures are going to be awfully tough to remember accurately 3 years down the line, much less agree if there is friction in the relationship. You’re mixing up enforcing contracts for tiny sums with having written agreements at all. Those are not the same thing. Conducting high value, long term business on verbal deals is just a bad idea. Not to mention if your verbal contract is for performance occurring more than a year after the “handshake” it is legally unenforceable in most jurisdiction under the statute of frauds. And if we’re talking real estate, many of those types of contracts must be in writing under the statute of frauds in most jurisdictions too.

    • Engelo Rumora

      Thanks Joseph but you missed the message here.

      The message behind my vlog is not to bore the audience with how I spend $20,000 per month on legals and how they can also structure their contracts for better protecting themselves along with the folks they are entering an agreement with.

      It was more for the purpose of providing a “hidden message” that they should only do business with the people they really want to do business with and not just take on anyone, have a one sided contract to back their “money grab” actions

      A contract won’t save you from financial ruin

      A person will

      Much success

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