Sometimes real estate investors like to stick to the numbers. We look at positive cash flow and make calculations and see where we can boost our bottom line. Sticking too close to the technical aspects of the business has its perils, though. It can lead us to look at real estate investing as a paper endeavor where some black typing on a white sheet is all we have to worry about. There is much more to this than simply looking at the numbers on a piece of paper.
Investing in real estate is a business of relationships, not numbers. As a company, we absolutely believe in that message and have built each of our businesses on the backs of great people who are passionate about what they do. Many of our team members are also real estate investors themselves, so strong relationships are something we understand very clearly!
All meaningful relationships take work, so this is one additional way a real estate investor cannot truly be passive. You have read us say many times that you cannot be passive about passive investing and your relations with other investors area huge part of not being passive.
Real estate investors can’t work effectively in isolation — they need to have strong relationships with their staff, property management, real estate agents and Realtors — and other real estate investors.
The Importance of Investor Relationships
Even if you do your job well and deliver on all of your investment promises, it doesn’t guarantee that people will flock to work with you. Personality and demeanor go a long way in the business of real estate investment. They keep it going. Good relationships make for good partners and a stronger portfolio. Partners and friends in real estate investment can lead you to new leads, deals and clients as well as help you grow your capacity and offer helpful insight and perspective on your decisions.
Improving Relationships With Real Estate Investors
Impressions are everything. Superficial details, like posture, grooming and clothes, are important in making a good first impression. Your body language can convey bad signals, as can other unconscious decisions — like your tone of voice and resting face.
Ask someone close to you if they notice places you can improve in these areas, or do a close (and honest) self-examination to see where you can better your presence and first impressions.
People, on the whole, can tell when you’re being disingenuous. The best investment strategy you can have is honesty. Be honest in your dealings, conversations and actions. That may mean coming clean when you know you can’t do a deal, even if agreeing anyway seems like it would save face. Acknowledge your limitations. Ask questions when you’re unsure about things. Honesty will earn you more respect from other professionals than anything else.
When dealing with other professionals and real estate investors, have a policy of generosity. Few people like to work with someone who only cares for his or her own gains. While you don’t necessarily need to go out of your way to make everyone else happy, there are places to find compromise and make concessions in deals that will make a good impression on the people that you work with.
It may be difficult at first when it may not be exactly what you want in the short term, but the long-term relationship that comes out of it may be worth that and more.
How do you approach relationships with other real estate investors? Are they as important to you as they are to us?
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