Are you a well-established real estate investor or aspiring to become one? Regardless of whether you are among the most successful real estate investors in the US or you are just entering the world of real estate investing, there is one thing without which you simply cannot survive in the real estate business: a real estate network. Indeed, many investments and businesses are all about knowing the right people, the right people knowing you, and you taking advantage of this situation. It’s the same with real estate investments. In order to succeed in this world, you need a diverse, solid real estate network.
You might say: “But if I am really knowledge of the real estate investing business and can deal with all issues on my own, why do I need to work on building and maintaining a real estate network? It is definitely going to take some of my time and efforts which I could otherwise devote to other more important investment tasks.”
To answer your question, let’s take a look at the 4 most important uses of a real estate network:
1. To build real estate partnerships
As a real estate investor, you basically have to choose between one of two options when it comes to every single real estate investment: whether to go on your own or through a real estate partnership. Each investment strategy has its pros and cons. For example, engaging in a real estate partnership to buy, own, manage, and rent out a rental property could bring in a lot of unnecessary complications, especially if you don’t choose your partners right. At the same time though, working in real estate partnerships could give you many options which would be well beyond your grasp if you go as a real estate investor on your own, such as diversifying your investment portfolio, buying more luxury rentals, owning and managing multiple properties, and others. In order to avoid the many problems which could originate from investing with real estate partners, the best source of such partnerships is your real estate network. Since you have known the other investors from your real estate network for a few years and since both you and they have a positive reputation (to be in each other’s network, after all), it is advisable to always seek their partnerships. Moreover, in your real estate network you should be able to find all sorts of experts, and diversity and complementarity is the best base of any real estate partnership. Thus, forming real estate partnerships for the purpose of investing in real estate properties is the first and most important use of a real estate network.
2. To gain more real estate knowledge
Any self-respecting real estate investor should be on a constant hunt for the newest and most beneficial real estate investing resources. That’s the way to keep up with the trends in the US housing market and with the latest technologies including real estate investment tools. Well, the best way to learn about such resources is from your real estate network. Remember that ideally it is composed of all sorts of professionals related to the real estate business including other real estate investors, real estate agents, real estate brokers, real estate lawyers, real estate developers, professional property management representatives, accountants, bookkeepers, bankers, financers, and others. This means that there is simply so much that you can learn from each one of these individuals. Moreover, they will be striving to keep up with trends and new savvy technologies, and you should definitely try to benefit from knowing them. So, having access to a virtually unlimited source of real estate investment knowledge is the second use of a real estate network.
3. To have ready access to professional services
As mentioned above, your real estate network should be comprised of many different real estate professionals who offer a wide range of real estate investing services. Let’s say your life as a real estate investor is getting quite busy since you are now owning and managing multiple rental properties, including some out-of-state investment properties. It is clear that you need to employ the services of a professional property management company or individual, but you have no idea even where to start your search for one. Well, the first choice should be your own real estate network. You could either discuss the available options with the professional property managers within your real estate network, or ask other more experienced in this regard real estate investors for advice. In any case, it is highly recommended to get the services of someone you know in person or of someone who has been doing a good job for another investor rather than to get someone you are totally unfamiliar with.
4. To buy and sell income properties
Naturally one of the most important steps in the real estate investing process is to buy the best investment properties when a real estate investor decides that he/she is ready to expand his/her investment portfolio. Equally important is to be able to sell your rental properties at a good price and at the needed time when that’s the best move for your real estate business. It is true that there are many ways in which a real estate investor can buy and sell rental properties, but it is hard to have access to the best platforms to do that. Once again, your real estate network can come to good use in this regard. That’s where you meet lots of other real estate investors who are also constantly looking for opportunities to buy and sell income properties. Moreover, all the real estate agents and real estate brokers are exploring options to buy and sell real estate properties on behalf of their clients. Actually within your real estate network you might hear about many opportunities which are not publicized in newspapers and websites. In addition, the professionals whom you are aware of will have strong incentives to act professionally and honestly in any real estate business transactions with you in order to preserve their good reputation.
In case you have ever had doubts about the importance of building and maintaining a solid real estate network, now you are familiar with the 4 most important uses of it. To take advantage of the above-described opportunities and others, start working on your real estate network now. Meanwhile, in order to gain access to more real estate investment tips, make sure to sign up for Mashvisor.