Supercharge Your Real Estate Investing with a Private Social Network
Real estate investment can be both lucrative and rewarding, but it can also present challenges. To build your portfolio rapidly, you'll need a network of professionals to support you. This post covers why a real estate social network is essential for real estate investors and how it can help you succeed in your investment journey. It also covers the benefits, drawbacks, anti-patterns, mistakes, and counter-intuitive aspects of building a network in the real estate investment industry.
Part 1: What do I mean by Real Estate Social Network?
My definition of a "Real Estate Social Network" is basically a bunch of people who are all trying to achieve the same goals and have the same interests. It is not just a transactional place but a place of like-minded people, and there is a social aspect to the network.
Every day you are faced with difficult decisions, often with incomplete information and problems that are entirely new to you.
In my experience, the best way to tackle such situations is to learn from the wins and mistakes of others and to surround yourself with other investors who share the same values, lifestyle, and goals.
When you do find such people, it could life-changing. My best friends now are all people who I have met through real estate investing.
This group can be made up of real estate agents, lawyers, contractors, lenders, property managers, and other investors. The whole point of this network is to be there for each other and help each other out so that everyone can reach their real estate investment goals.
Part 2: Benefits of a Network
There are several benefits of having a network of professionals in the real estate investment industry:
- Access to Information: Real estate investment involves constantly changing market trends, legal requirements, and financial regulations. By having a network, you can tap into the collective knowledge and experience of your peers, who can provide insights and advice on the best strategies to achieve your investment goals. I attended my first meetup a few years ago, even though I did not own any real estate at the time. If I had not attended, I honestly wouldn’t have gotten inspired and owned the properties I own now. My first property in Florida came as a result of me making a connection in the meetup, and then I was hooked when the checks started coming in without me working at all. Rest is history.
- Access to capital: If you're considering investing in real estate, one of the biggest challenges you may face is finding the necessary capital. There are various options available, including traditional bank loans, private lending arrangements et al.. Still, the best way I have found to secure financing is by building a network of private capital providers, a.k.a investors who want to be passive. These types of investors often lurk in online communities to look for potential operators. If you are an operator, this can provide you with collaborative opportunities that allow you to pool your resources and expertise and combine them with the capital from these passive investors.
- Building Relationships with Like-Minded People - People always talk about networking in general, but I love ‘focused networking.’ Connecting with people who have the same interests and goals as you are way more valuable than connecting with people who don’t. If you love real estate, you’ll be in a room with others who love real estate equally as much. Some will be more successful, and some will not be as successful, but everyone brings something to the table.
- Referrals and Recommendations: Building a strong network of professionals in your industry is crucial to finding the best service providers for your needs. By tapping into the knowledge and experience of your network, you can receive valuable referrals and recommendations for real estate agents, attorneys, contractors, and property managers. These recommendations can help you avoid the risk of making costly mistakes by working with the wrong service providers.
- Access to Deals: It's a dog-eat-dog world out there when it comes to the best deals. What shows up on the market is essentially leftovers. By tapping into a network of professionals, you'll gain access to some of the juiciest, off-market opportunities around. You are talking about deals that aren't advertised to the general public, like distressed properties, foreclosure sales, and more.
- Before getting access to inbound deals before my Twitter account became big, I made a small community where everyone shared deals openly. Members were selling, buying, looking for partnerships, etc. The cool thing is that these deals are coming from people you already know and trust, ya know? These are usually off-market deals that regular folks can't even touch.
- Support and Motivation: Investing in real estate can be a challenging and lonely business, and it's easy to get discouraged when things don't go as planned. Having a network sharing their discipline and progress does not make you envious but makes you actually motivated. Seeing others tackle daily progress and achieve success, you realize your potential. Imagine long, hard days at work, and you just want to kick back, but then you get an email about someone talking about reaching $10k per month in passive income and quitting their job. I bet you are going to want to take action instantly.
Part 3: Drawbacks and Anti-Patterns
While building a network can have significant benefits, there are also drawbacks and anti-patterns that investors should be aware of:
- Over-reliance on Network: Relying too heavily on your network can be a mistake. It's important to conduct your due diligence on any deals or service providers that are recommended to you by your network. Don't assume that just because someone is part of your network that they have your best interests in mind.
- Inability to Build Relationships: Building a network requires time and effort. If you are not willing to put in the work to build relationships with other professionals in the industry, you may struggle to find success in real estate investment.
- Overcrowding of Network: Having too many people in your network can be overwhelming and make it difficult to build meaningful relationships. It's important to focus on quality over quantity when building your network. As they say, if you are a friend of everyone, you are a friend of no one.
- Lack of Diversity: It's essential to have a diverse network that includes professionals from different backgrounds and experiences. Having a homogeneous network can limit your perspectives and opportunities.
Part 4: Common Mistakes and Counter-Intuitive Aspects
There are several common mistakes that investors make when building a network. Here are some of the most common mistakes and counter-intuitive aspects to consider:
- Lack of Follow-Up: Networking is not just about meeting people; it's about building relationships. Following up with people in your network is crucial to maintaining those relationships.
- Not Providing Value: Networking is a two-way street. If you want to receive value from your network, you must also provide value. Look for opportunities to help others in your network, and they will be more likely to help you in return.
- Focusing Only on Immediate Goals: Networking is a long-term investment in your career and business. While it's important to focus on your immediate goals, it's also essential to build relationships that can provide value over the long term.
- Being Too Transactional: Networking is not just about finding deals or clients. Building genuine relationships with other professionals in the industry can provide benefits beyond just business opportunities.
- Being Too Opportunistic: It's essential to build relationships based on trust and mutual respect. If you only reach out to people in your network when you need something, it can damage those relationships.
Part 5: How to find and pick a real estate social network?
Social network for real estate investors
These are networks or accounts that are created and crafted to help real estate investors with different aspects of their investment journey. Some specialize in market analysis, others are for networking and deal sourcing, and others are to help with investment strategies. There are many reasons to join a real estate social network; the best one to join depends on your goals and what you're hoping to improve right now. There are three main social networks where you'll want to consider establishing a presence as a real estate investor: Facebook, LinkedIn, and Instagram.
Facebook - As one of the oldest and broadest social networks, Facebook is a must-have for investors.
- Join relevant groups: Search for and join real estate investment groups, local real estate groups, and industry-specific groups to connect with like-minded investors.
- Create a Facebook Page or Group: Consider creating a Facebook Page or Group for your real estate investment activities to share valuable content and build a community.
LinkedIn - LinkedIn is more buttoned-up and business-like than the other social networks, and that's a good thing for investors who want to meet other professionals! That's the LinkedIn superpower.
- Optimize your profile: Make sure your LinkedIn profile is professional and includes relevant information about your real estate background, interests, and expertise.
- Network with professionals: Connect with other real estate investors, agents, and professionals to expand your network and learn from their experiences.
Instagram - As a platform largely focused on gorgeous images, Instagram and real estate were made for each other. Start your own account to showcase investment properties and share insights into your investment journey.
- Post visually appealing content: Share high-quality images of your investment properties, before and after renovations, and any other visually appealing content that showcases your investment journey.
- Engage with your audience: Respond to comments, answer questions, and interact with other real estate investors on the platform.
By establishing a presence on these social networks, you can build valuable connections, stay informed about market trends, and expand your real estate investment opportunities.
You can use big social media platforms as a basic strategy.
Real estate Facebook groups
There are numerous Facebook groups for real estate investors, catering to different interests, experience levels, and regions. Here are some popular ones to consider:
- Real Estate Investing for Beginners: This group focuses on helping new investors get started in real estate, offering tips, strategies, and a supportive community.
- BiggerPockets Real Estate Investing Network: Affiliated with the popular BiggerPockets website, this group provides a platform for investors to connect, share knowledge, and learn from one another.
- Wholesaling Houses Elite: A group dedicated to wholesaling, where investors can learn about the process, share deals, and network with other wholesalers.
- Real Estate Investor: This group is a hub for real estate investors to discuss strategies, market trends, and investment opportunities.
- Commercial Real Estate Network: Focused on commercial real estate investments, this group is a great place to connect with professionals, discuss deals, and learn about commercial property investing.
- Multifamily Real Estate Investing: For investors interested in multifamily properties, this group offers insights, resources, and networking opportunities in the multifamily real estate niche.
- Real Estate Buy & Hold Investors: This group is dedicated to buy and hold investing, offering a space for investors to share experiences, ask questions, and learn about long-term investment strategies.
- Flipping Houses: As the name suggests, this group is geared towards house flippers, providing tips, resources, and networking opportunities for those interested in flipping residential properties.
Please note that some of these groups may be closed or private, requiring you to request membership or be invited by an existing member. Additionally, the availability and quality of groups can change over time, so it's a good idea to explore and find the ones that best suit your needs and interests.
Real estate LinkedIn groups
LinkedIn groups for real estate investors provide opportunities to connect with professionals, share knowledge, and discuss industry trends. Here are some popular groups to consider:
- Real Estate Investors Network: A large group for real estate investors, professionals, and service providers to connect and share information about investing strategies, market trends, and opportunities.
- Commercial Real Estate Investment: Focused on commercial property investments, this group is a platform for investors, brokers, and other professionals to discuss deals, share advice, and network.
- Multifamily Real Estate Investment Group: This group is dedicated to multifamily property investing, offering insights, resources, and networking opportunities for investors interested in apartment buildings and similar properties.
- Real Estate Investment & Development: This group brings together real estate investors, developers, and other professionals to discuss investment opportunities, development strategies, and industry trends.
- Real Estate Investment Professionals: A group aimed at connecting real estate investment professionals, including investors, brokers, lenders, and service providers, to share knowledge and resources.
- Real Estate Crowdfunding: This group focuses on the growing niche of real estate crowdfunding, offering discussions and networking opportunities for investors interested in crowdfunding platforms and projects.
- International Real Estate Investors: For investors looking to diversify their portfolios with international properties, this group provides insights and networking opportunities in global real estate markets.
Before joining any LinkedIn group, keep in mind that some groups may have specific membership requirements or be invitation-only. Additionally, the availability and activity of groups can change over time, so explore and find those that align with your interests and needs.
Using Twitter to network with other real estate investors can be an effective way to build connections, share knowledge, and stay updated on industry trends. Here are some steps to help you network on Twitter:
- Optimize your profile: Make sure your Twitter profile is professional and includes relevant information about your real estate investment background, interests, and expertise. Use a high-quality profile picture and cover photo that represent your investment focus.
- Follow relevant accounts: Start by following real estate investors, professionals, influencers, and organizations within the industry. This will help you stay informed and get involved in conversations related to real estate investing.
- Engage with content: Like, retweet, and reply to tweets from the people and organizations you follow. Share your thoughts, ask questions, and provide valuable insights to establish yourself as an active participant in the real estate investment community.
- Share valuable content: Post useful articles, news, and insights related to real estate investing. This will help showcase your knowledge and attract like-minded investors who may be interested in connecting with you.
- Use hashtags: Incorporate relevant hashtags in your tweets to increase the visibility of your content. Popular real estate investing hashtags include #RealEstateInvesting, #PropertyInvestment, and #RealEstateTips.
- Participate in Twitter chats: Join scheduled Twitter chats related to real estate investing to engage in real-time discussions with other investors and professionals. This can help you make new connections and demonstrate your expertise.
- Network strategically: Don't be afraid to reach out to other investors and professionals via direct messages or by mentioning them in tweets. Engage in meaningful conversations, ask for advice, and offer your insights when appropriate.
- Be consistent: Maintain an active presence on Twitter by regularly posting, engaging with others, and staying updated on industry news and trends. Consistency is key to building a strong network and establishing your credibility in the real estate investment community.
By following these steps, you can effectively use Twitter to network with other real estate investors and expand your knowledge and opportunities within the industry.
In conclusion, building a network is essential for real estate investors to start investing or growing their portfolio rapidly. By having a network, you can access valuable information, collaborative opportunities, referrals, access to deals, and support and motivation. However, it's important to be aware of the drawbacks, anti-patterns, mistakes, and counter-intuitive aspects of building a network in the real estate investment industry. By being mindful of these factors and investing time and effort into building meaningful relationships, investors can leverage their networks to achieve success in their real estate investment journey.
Real estate is a multiplayer game, and I would guess 99.9% of investors will put relationships at the top of the list.
Want to get the best leads? Most would google the best brokers in the area. But how do you know they are good? How do you know the contractor you found on Yelp isn’t costing you 4x?
IMHO, No one does it “on their own”. ...not just in RE but in life.. If they do, they have rich parents, or it took them forever.
Knowing people will get you started but knowing the right people will get you paid.
The point is simple. Prioritize a private network if you want to grow fast.
If you are interested in joining a high-value private network, check out the Supermode community