How to Expand Your Real Estate Empire
In many parts of the United States, children have recently gone back to school after the summer break. It is a time for children to connect with old friends, form new friendships and learn new skills. It’s also a time for parents to breathe a sigh of relief for surviving the summer.
As real estate investors, we should look at our investing business as returning to school as well. It is a time to connect with old team members, find new team members, and learn new skills. These are the fundamentals that will help you expand your real estate empire. By focusing on just a few tasks, investing will become easier and easier and you will do more deals.
Let’s go into each of these a little further.
Connect with Your Power Team
While attending your training classes, you have heard us teach you about the importance of having a power team that assists you with various aspects of your business. Strengthening your team is one of the best things you can do on an ongoing basis to do more and more deals.
Some of the key players you will want to further your relationships with are real estate agents, lenders, and hard-money lenders.
Real estate agents are always bumping into deals and properties before they ever hit the market. But their value is far greater than just getting comparables. Use them right and they can really help you.
Here is another strategy on how to use real estate agents as a valuable resource for your business. When homes do not have enough equity, agents cannot sell them unless they do a short sale and that is a long qualification process. In any of these cases, the agent cannot list the property because there isn’t any equity for the owner to pay them a commission. You could benefit by having the agent refer that seller to you and you could structure a creative deal using your tools as an investor.
Lenders can also be valuable for the same reason. If the homeowner cannot refinance their property, they may be looking for creative alternatives to get out of the home so that they can move on.
Hard-money lenders are great resources to be constantly adding to your team. They give you more ways to finance deals should the need arise.
Find New Team Members
Even though you are a real estate investor, you need to understand that real estate is a people business — it is not a house business. You are constantly dealing with people, so the better you are at developing relationships, the easier your business will be.
The simplest way to expand your real estate empire is to constantly be growing new relationships. In addition to reconnecting with your team like mentioned above, you constantly want to be adding new team members too. Here are some of the relationships that you should always be developing, no matter how far along you are as an investor:
Wholesalers are great connections to develop as a real estate investor. Some investors struggle to find more deals to invest in. These connections are great to have because you can get people to find the deals and bring them to you. Wholesalers may not have the money or resources to put together the deal so they are looking for other investors who can. When you get several wholesalers that you work with, you start to develop a constant stream of potential deals coming your way.
One of the best places to find wholesalers is through real estate investing clubs. They are there looking for other investors that they can sell their contracts to.
Bird dogs are also great connections to constantly nurture. A bird dog is someone who refers a deal to you and you pay them a referral fee for the deal. Most people know someone (a friend, family member, or acquaintance) that needs to sell their home and they usually have the inside story. This is a great opportunity for them to earn a little extra money and a great way for you to find deals that you never would have known about. Be sure to communicate to the bird dog what kind of deals you are interested in so that you aren’t wasting your time with deals that don’t interest you.
Financial partners are another resource you should constantly be developing. Your financial partners can provide you with the money you need to put together deals you couldn’t on your own. While it is beyond the scope of this article to discuss ways to structure the partnership, the whole point is that you can get into some other deals and they receive a return for their investment in the deal.
Be sure to take care of your financial partners. You have a responsibility to communicate with them about the project and how things are going. When you take great care of them, they will tell others and word will spread. This is one way to develop a constant stream of funds for future deals.
Keep in mind that in order to move your empire forward, you must constantly improve your ability to get deals coming to you as well as your ability to finance them. These two things should always be on your mind and you should be looking for ways to improve them.
Learn New Skills
The last area of focus for building your empire is to learn new skills. If you think about everything that you have become as a real estate investor, it is because of the skills you have acquired. The way to become more and to grow your business is by learning new skills.
We highly recommend becoming a master of your craft. Devote time to learning new techniques and skills so that you do not have to miss out on opportunities. Set aside time to take new classes that will teach you how to do deals you didn’t know how to do previously. This will open up new doors of opportunities.
Take the time to learn from books, classes, mentors, and other investors around you. When you put the emphasis on learning new skills, many new opportunities will come to you. Your mind will always function best when you keep it open. Learning new skills refines who you are and what you are capable of as an investor.
Be a life-long learner.
As real estate investors, our children remind us of these three valuable tasks when they go back to school. You can constantly improve your business with a constant, steady focus on just a few details.