Who Do You Know Who?
Did you know the real estate investment market is tough? I had a boss many years ago who would say “sometimes you dance with the guerrilla and sometimes it dances with you”. Basically, who is leading in the dance. You or your property. Right now is tough and you’ve got to think outside the box a little bit to move properties. I can buy properties all day with nothing out of pocket and be in a good equity situation. The problem is moving those properties to someone else who has cash or financing.
Without cash or financing you have to get creative to move your stuff. Lease with option to purchase. Long term rental. Owner financing. All of these scenarios are basically designed to “tread water” till things ease up later on. My guess is we’re in for another year or two of slow moving houses. You can still move property that you can pick up for 20% to 30% of value quickly. Part of the problem is we got spoiled over the past 5 to 8 years with super easy money and constantly increasing property values. You could buy a property at 70% of value, add your 30% on top of that and still get the buyer 100% financing. Usually in 90 days and walk out of the closing office with a big fat check while doing the happy dance.
In today’s market you can still do the happy dance but it is less frequent and you have to work at it a lot harder. Back to this “who do you know who” thing. It’s a phrase I picked up from being in BNI (Business Networking International). You constantly ask who do you know who…. is looking for…….. I have found in today’s market I do much more business via referrals and relationships. Social networking has become the big buzz. The cool part about it is people do business with people they know and trust and have a relationship with them. Remember the best advertising is word of mouth. In today’s economic climate that has been personified.
If you want to be and remain successful in today’s real estate investment market then get out there and be sociable. Go to networking events, do the social blogs. Use Myspace, Facebook, Twitter, Meet Up and any other “thing” or form of networking that is out there. Make a connection. By the way. Don’t go to a networking event solely to see what you can get out of it. Bring something of value to the table. Help someone out and sure enough someone else will help you out.
Join real estate invetment groups. Examples would be the area REIA (Real Estate Investment Associations) groups. They have a bunch of good information available and you will meet all kinds of other investors there. One of my favorite groups in the Kansas City area is MOKAN REIN (Missouri-Kansas Real Estate Investors Network). Check out www.mokanrein.com. Okay, I admit it, I’m part owner of that group. I do make it a point to bring as much information and help to everyone in the group as I possibly can. You know what? I get tons of leads via that group. Everybody helping everybody, what a concept.
Yep, the market is tough and it sucks sometimes. That’s life Charlie, hike up your skirt and do something to control your own destiny. Take action, help someone else out and watch the magic happen. Give me your thoughts and ideas on any other networking groups or things to do.
God Bless each and everyone of your hard working little butts,
Gary Hard
