How can you the real estate investors build more trust in today’s market?
The biggest obstacle to doing more deals and reaching personal goals in this business is building and maintaining trust. Unfortunately, there is a lot of natural distrust out there. One very big issue for me is open communication and ethics. Under promise and try to over achieve. Follow through on every email and phone call.
Unfortunately someone might have great communication skills yet lack ethics.
I speak to many people throughout the day. Some just do not follow up on what they promise. This does not build trust. Trust is the cornerstone of real estate success. What I suggest is you always follow up with anyone who calls you or emails you. It can be a tenant, a potential lead on a BMV property or someone who might be interested investing with you as a JV partner.
If you want to convey with more motivated sellers, enter into more leases with qualified tenants, or build relationships with JV partners & investors, then you’ve got to build trust. Once you build trust you’ll also find that every deal becomes more profitable & possible.
More so I strongly suggest you build a portfolio of all your prior deals. Document everything and be 110% transparent. Document everything you do the first time around. Otherwise, you’ll probably never find the time to go back to dig up and organize the information. Between your smartphone and cloud storage, you can back up everything you do as you go and record it. Later, this can be turned into case studies and a credibility book.
I have completion statements on our buys…completion statements on our sells… pictures before and after as well as invoices from our builders. This way a potential investor who might be interested investing with us can see within 2 minutes on HMO project xyz, it cost us 74,000 we put in 35,000 and sold it within 5 months for 160,000 and while it was waiting to be sold, it was cash flowing since it was rented. Having everything fully transparent builds trust.
In today’s banking world where we basically get negative returns with inflation would not want to invest in a BMV project and potentially make money? Family, friends…ask everyone you know if they know someone who might be interested in learning more about real estate. Do not hold back anything. Build trust …build confidence…
In order to be trusted and to build trust is simply to tell the truth. Always tell the truth even when it is hard. For example one of my JV partners called me at 10 pm and told me there was an issue in one of our HMO in Manchester. We had a flood in one of our HMO properties. He went down to the HMO property with a plumber and resolved the issue that night. This is what builds trust. It was in his interest as he got 50% of the profit…but still…If he lacked integrity, he could have waited or not even told me.
Another example is we had a problem with a brick wall in one of the back yards of another HMO property. My JV colleague there was immediately on top of it. No, I am busy…No I will get to it next week. It was handled and his word means something. Everything is integrity or unfortunately lack of.
Unfortunately, many investors get distracted and miss the truth of this whole equation. Think long-term and be trustworthy. It will pay off.
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