Here are the four tips that came out of the meeting:
1. Build Your Network
I’m sure that some of you have heard the quote “Your Network is Your Net Worth”. This is where it all begins. Many of the wealthiest people in the world spend time forging relationships and networks with others. This is the first phase that leads to a business partnership.
In the world of real estate investing, this is the most important part of building success. I spend quite a bit of time cultivating relationships, getting to know people and positioning myself as a person that can help others achieve their goals in the multifamily space as a thought leader. I provide my network with a weekly podcast, a YouTube channel, daily videos, and live events to learn about multifamily real estate.
So, where do you start? Begin by speaking to your immediate “sphere of influence” and begin associating yourself with multifamily real estate. From there, you grow your sphere outside of your group. It will take a lot of time and consistency to get people you don’t know into your sphere, but the key is to meet with and talk to people that know your immediate sphere of influence. If your Aunt Mary associates you with multifamily real estate, it may come up as a topic of conversation when your Aunt talks to her dentist about her niece that is blowing it up at real estate. Many have raised millions doing just this!
2. Show Interest & Watch Your Language
When you are meeting with a potential investor, take the time to get to know them, to understand what is important to them and to discover their “why”. You can ask them, “What is driving your decision to invest in real estate?”. You will be surprised to find that it’s not always money. Sometimes it’s to build generational wealth. Or perhaps it’s to avoid getting nailed on taxes. Whatever the reason, take the time to understand them.
When speaking to investors, be aware of the words you use. Avoid using words that will get them saying a negative word or put them into a negative state of mind. We inadvertently use negative statements all the time: “What if the deal doesn’t work out?” or “What if I can’t raise the money?”. All these negative reinforcements hold us back individually. The same thing happens to others as well. Instead, we need to ask better questions that assume we will be successful, such as: “how do people that find great deals build success raising capital?” Follow their examples, study them and apply their techniques.
3. Look for Opportunities
To succeed in a hot market, you must be creative to find deals. This means not just looking at what the brokers are giving you. Rather, you need to get creative and look at what is around the on-market property. If other deals are selling in the immediate area, maybe someone who is not selling will unload their property to you.
4. Partner with Others
Back when I was buying single-family and small multifamily deals, I was investing on my own. My business was stagnant for many years. It wasn’t until I partnered with others that our skillsets were amplified; I had someone I can lean on where we complimented aspects of our strengths and weaknesses. Whether it be analysis or just bringing a balance sheet to the table.
Finding a partner takes time. You really need to know yourself before and work together to know if you want to continue building a business. If you are a high action individual with aspirations to build massive wealth, you may not want to partner with someone who is happy doing one small deal a year – or vice versa. You also need to know what you are good at and what you are not so good at. You want to find partners that compliment these elements and have the same ethics and goals as you do. You build a team around those answers and your business will do well.
So, to wrap it up, to raise money and find deals you need to:
1) Build your network and establish yourself as “the real estate expert” in your immediate circle of influence. This is done by talking to people about what you want to do with real estate and staying consistent with your message.
2) Ask questions and show genuine interest in the people you are speaking with. Pay attention to what you say and how you say it.
3) Make opportunities where there are none. Knock on the door, get to know potential sellers, and target markets with activity.
4) Partner with people that has strengths that complement yours, and you can join forces to focus on a goal.
What do you guys think? Do you have other tips? Let me know. Comment below.
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