At a high level, business is conducted by people that share a like vision and have a general interest in the people they work with. Too often, the idea that people will want to work with you as long as you can get the job done, regardless of personality, is simply not true. You will have to be able to hold up your end of the bargain, but personality goes a long way in determining the number of partners you work with. At moments, when things get overwhelming and emotions run high, it is important to keep this in mind. Investor relationships are essentially the backbone of the real estate industry.
Everything you do in business leaves others with an impression of you. What you wear, how you answer a question and how you deal with people that are referred to you can have a lasting impression on what others think of you. You may meet someone at an investment club meeting that may be knowledgeable, but there is just something about them that gives you pause. This happens with everyone in the business: from your realtor to your contractor to the homeowner you are trying to buy the house from. People can sense sincerity and integrity. If you are lacking in either, you will quickly be exposed and find yourself wondering why you don’t have as many deals or contacts as you would like.
The quickest way to gain the trust of either potential or existing business partners is by being honest. This may seem obvious, but too often in the attempt to show that you know the business and can do almost anything you answer a question that you aren’t sure of or you say you can do a deal that you can’t. Eventually, when you get called on this and have to produce, you will be exposed and lose any shot of working with them in the future. If you don’t know the answer, just tell them you will find out or if a deal is not in your wheelhouse or you are unsure how its structured to just come out and say it. You will get much more respect by being honest that making your first impression as someone who will say or do anything to get a deal.
We are conditioned as businesspeople to always try to squeeze every dime out of every deal. This can work on certain deals and with certain people, but it may not always be the best strategy all of the time. If you can give just a little either with your time or your money, the people in the deal will remember it and want to work with you again. You don’t have to give away the farm, but just by making small concessions you will get noticed. This is how relationships are built and contacts are made. You will learn to pick and choose your battles, but if you keep your eye on the long term you will see value of doing business together. By giving up a little on this deal, you can work together on five more deals down the road.
The relationships you make can be the backbone of your investing business. If you keep this in mind, you will focus more on establishing relationships instead of closing deals.