No, we are not referring to a romantic relationship that makes our heart skip a beat, or shatter it into a million pieces. We are talking about business relationships. In real estate, and in life, one’s network is their net worth. Real estate is a team sport, and building relationships is by far the most important task/skill for any investor. We are constantly dealing with brokers, sellers, bankers, property managers, insurance agents, inspectors, appraisers, lawyers, contractors, the title companies, and many more. It’s important that we are able to work with everyone in a positive, professional environment, and maintaining quality relationships will determine our future trajectory. Learning the numbers and the mechanics is fairly easy. It’s networking and relationship building that takes a lot of understanding, time, and effort.
Often times deals are done off market, and these opportunities result from key relationships. Brokers are the main source, but it’s not uncommon for bankers, property managers, inspectors, contractors, or others to bring a potential deal to the investor. Various people can also introduce us to reputable and competent vendors. The broker can introduce us to a good banker, property manager, and vice versa. Networking with other investors can also open up opportunities for deals, funding, partnerships, introductions, and much more. Aside from these immediate benefits, it’s important to establish a good reputation as someone who is professional, easy to work with, and has integrity. It is not uncommon for the seller to choose a particular buyer they like over the other buyers who may have put in similar or even slightly better offers. We may have a better chance of asking for and getting a favor from our vendors if they hold us in a positive light. During difficult times, we may be given more leeway, or even a helping hand. Nobody wants to work with unprofessional, flaky, and difficult people. Being likable opens up a lot of opportunities, and also sets us up for success in many situations.
It may be obvious, but it’s worth noting that we must be genuine in our approach. Transactional approach to human relation can be very transparent, and many can pick up on it pretty quickly. There’s a lot to unpack when it comes to human relations, but we can look at a few simple practical steps to building relationship in real estate.
One of the first things is to always be on time for appointments. It has been said, “better one hour early than one minute late.” If the appointment is at 9:00, show up at 8:50. Nothing can dismantle respect/trust as quickly as having no regard for another’s time. Forgetting an appointment or call is another rather common discourtesy that we can immediately stop. Whether we use a calendar or an organizer, make sure that we never forget a call or a meeting. On a similar note, always do what we say. Our words and actions have to match. If we tell the broker that we will review the deal and get back to him in 24 hours, make sure to do it. If we tell the contractor that the check will be sent in 2 days, do it. If we tell the banker that we will send certain documents by the end of the day, make sure to send it. If we tell someone that we will call or email them back, follow through and do it.
Next, look for ways to add value instead of always asking for things. It’s tempting to just ask for what we want. JFK once said, “ask not what your country can do for your, but ask what you can do for your country.” In a similar way, we can look for ways to give rather than just take. Calling the broker and only asking for deals. Calling the property manager only with our demands. Asking the insurance agent only about the best rates. Asking for key introductions that we need, etc. A simple thing that can pay large dividends is to focus on how we can provide value for the other person. Giving good referrals and connecting people are easy ways to genuinely add value. Make sure to leave reviews for the vendors if they do a good job. In online communities, mention the good vendors and be generous in praising them. Volunteer to give good references for their future prospective clients. If it helps, make meaningful introductions for people to collaborate. If a product or service doesn’t quite fit our need, think of someone that might benefit from it and connect them. Reach out to other investors that may need help or guidance. And always ask how we can be of value to them. By taking this approach, many will be eager to return the favor, and sometimes we will be pleasantly surprised at what results from small gestures. Again, it’s paramount that these are not done transactionally, and done with no strings attached. Expect nothing, and do things to genuinely help people, and we just may get surprised down the road.
Another simple thing that goes a long way is to remember people’s names. Learn how to pronounce the name correctly, and try to remember little things about them. Write down notes if necessary, but try to remember if they are married, have kids(pets), their hobbies, sports team, their college, and naturally bring them up on future conversations. It’s been said to listen twice as much as speaking, as we have two ears and one mouth.
A good practice in expanding one’s network is to ask for referrals. Real estate is a small world and most people in the industry know each other. Ask for good banker recommendation from the broker. Ask for god broker recommendation from the property manager. Ask for a good contractor from other investors, and the list goes on. Get in the habit of always asking for introduction to other professionals in the industry. This also makes the initial call smoother when we tell the other party that we’ve been referred by a mutual acquaintance. When cold calling a vendor, briefly explain who we are, what we do, and that we’d like to get to know them a little bit better to explore the possibilities of collaboration.
There are many other components to relationships such as honesty, empathy, thinking win/win, but they are beyond the scope of this. The steps outlined above should give us a jump start in building and maintaining successful real estate relationships, but it’s only the start to a life long journey of understanding human nature and interaction.
By: Ki Lee