It’s not enough to say that the mortgage market in America has slowed or is in recession…when it comes to mortgaging the entire market has collapsed! Homeowners are having great difficulty getting a mortgage even with perfect credit, and real estate investors are having more difficulty getting traditional lending companies to work with them. That leaves primarily one option and that is private lending. How does a real estate investor find private lenders?
It may not be as hard as you think. In fact, the answer all goes back to the very heart and soul of real estate: networking. This involves not only real estate investment clubs but also networking groups. The advantage of pursuing this venture is that most of the people you will meet will be associated with the real estate industry. They will not be “hard sells”-they might even be in the same industry that you are in. If you are looking to sell your real estate deals then this may be the best place to find qualified buyers. Perhaps they have come to the same realization that you have; namely, that the most quality contacts can be found at networking events! You still may need to practice your elevator pitch if you want to meet a prospective investor. However, it’s not the same type of dynamic as literally approaching a stranger in an elevator. These are quality contacts that may be able to direct you to an opportunity.
Networking is essential to real estate, and practically speaking, to all commercial industries. Success is in measured numbers, yes, but every successful venture starts on a one-to-one basis, doesn’t it? This emphasizes the point that you should always be proactive in making new contacts and maintaining relationships with old contacts. Maybe the person you meet won’t be able to help you right away. However, a year later, what if he runs into a top investor looking for a reliable agent to do business with? Where will you be? If you have successfully networked, you will be right there front and center, shaking hands with opportunity!
What are the benefits that you can expect from joining a professional networking group? Consider some of the benefits that come from BNI, Business Network International. Originally founded in 1985, BNI has become one of the largest international organizations for networking worldwide. In 2008 alone, the organization passed over 5.6 million referrals over to over 100,000 members across 40 countries. BNI says it best when they state on their website “Belonging to BNI is like Having Dozens of Sales People Working for You”
It would be a shrewd idea to write and memorize a 30-60 second elevator pitch so you can deliver it to multiple contacts. You never know who people know! When you network you get your name and business out there. This is the goal of real estate lending and focusing more on networking may be just what your business needs to rise up from the depths of recession. For more information on BNI visit the official website or look for other professional networking groups in your own vicinity.