Building up a Network in Real Estate Investment

A feature article by Judson Voss, Apr 14, 2008         

When you first start out in the real estate investment business you’ll find that having a network of other investors and buyers is a valuable source indeed. In fact, it can help you in all areas of your business from finding good properties to buy to finding the investors to buy those properties from you. It’s fairly easy to build up a network as you begin buying properties, even if you don’t know anyone when you start.

Network your way to profits
Naturally, you won’t pick up every property that you look at in the real estate investment business. However, just looking at properties brings you into contact with other property investors and helps you to build your network.

As you begin to make more and more deals in the business, say with REO agents that hold bank properties are in post-foreclosure, you are also networking. You’ll find that you get a lot of repeat business with those investors with whom you make successful deals.

It’s not uncommon to only make a deal on one out of every 15 to 20 properties you look at in real estate. However, you’ll find that as you buy those properties you’ll make connections with the REO agents and investors you deal with and they’ll keep you in mind. So after a while, you begin to find that you are being handed deals that fit your criteria because the agents and investors know what you are looking for. Eventually, it’s possible to start picking up one out of every four or five properties you look at, simply because your network will be handing you the perfect properties to invest in. See how easy it is?

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Record the Information of those you Meet! One real estate investor claims that up to 65% of his properties come from repeat clients. Networking is easy when you choose to work with these repeat clients. To make the most of those repeat clients and past investors you’ve worked with, try to remember to take down their names and numbers or keep their business cards and add them to your address book. Be sure to add all pertinent information about each person you meet, such as whether they are looking to invest or sell properties.

Networking is an essential part of the real estate investment business. However, you don’t need to feel intimidated if you are starting out with little to no network. As you make deals and look through properties in the local area you’ll also gradually be developing your very own network.

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