ForeclosuresVT - ForeclosuresMass Monthly - Success Strategies - Establish Your Credibility as a Serious Real Estate Investor (June 2008)

Network, network, network - that's what successful real estate investors will tell you is one of their success "secrets" to building business and profits. Networking is indeed one of the best ways to meet like-minded investors, those who have "been there, done that," find partners or mentors, and if you're considering syndication deals, meet people with serious money to invest in your syndication.

However, networking alone is not enough. You can attend Real Estate Investors Association (REIA) meetings without fail every month, yet still not find the "insider" deals if you lack "street cred." What do I mean by this? If you're trying to persuade people to partner with you - whether the deal is a two-family residence or a multi-million dollar commercial property - you need more than a good real estate deal and sincerity. You need credentials that indicate you have experience, expertise, good business sense, and integrity.

Think of your credentials as a resume that helps other real estate investors make the decision to do business with you. Building your credentials does take some time, but it's not difficult. Consider the following eight strategies:

* Next 37 17 investors only!

A business card is the first step in building your credibility because it's the first thing people ask for when in a networking situation. Having a card with your name and telephone number is O.K. Having a card that explains what you do (i.e. foreclosure specialist, hard money broker, etc.) and includes email, fax, and a Website URL is even better. Why? It makes you look like a serious investor with a real business.

If syndication and/or larger multi-families are in your game plan, you'll want to create a Website detailing your experience, previous deals, testimonials / references, educational content, association memberships, and other information you've developed or achievements you've accomplished along the way.

Having a Website chock-full of content, resources, and customer / partner testimonials goes far in helping to establish your credibility with potential partners and investors. You don't need all of these things before developing a Website; however, as you get better at marketing yourself and establishing your credibility, you'll want to add the resulting articles, testimonials, etc. to your Website.

If you are an expert on a particular neighborhood or community, consider starting a blog - another way to establish your position as an expert or "thought leader."

Each time you successfully complete a deal, ask the people involved with the deal - including the buyer / seller, your partner, the attorney, the lender, and even the contractor - if you can use them as a future reference. Like testimonials from satisfied clients, references help build trust and credibility and make it easier for other real estate professionals to do business with you.

You'll want to keep your references current, because when it comes time to do a major deal, you don't want to give out references that are years old or - God-forbid - dead.

The same goes for keeping track of your network. Whether you're "old-school" and keep track of people you know via index cards, or you've become familiar with online tools such as Facebook or LinkedIn, you want to ensure your database is current. Why? People often ask their network for recommendations when they need a service professional, such as an accountant, lawyer, partner, etc. You'll be seen as a valuable resource if you can provide top-notch recommendations, and once you begin recommending people, people will start recommending you.

I also advise that you pay close attention to who you include in your network. Someone's less than stellar character may put you in a negative light. You are judged by the company you keep.

Giving presentations to your fellow real estate investors is a great way to build your credibility and establish your expertise (you can add your speaking gigs to your Website), become slightly famous in your local area, and build business.

"But I'm not an expert," I can hear you saying already. "Who will want to hear me speak?" Ah, but you are an expert if you think "outside the box." And, by speaking on a topic, you'll be amazed by how much more you'll learn about it! Here are some topics that most REIA leaders would love to have people talk about:

Your first deal - Lots of people have yet to complete their first deal and need encouragement. You can give them it by talking about how you did your first deal, how you overcame any fears or challenges, your successes, and even your mistakes.

A deal that totally bombed - The best way to learn is through trial and error. You can help your fellow investors by talking about how a recent deal bombed because of the mistakes you made - and how you'll do things differently the next time. Or, if you knew it was deal, but you failed to take action - you can talk about watching someone else make a bundle and what you learned from the experience.

Real estate marketing / accounting / business development - Are you an expert marketer in your "day job"? Maybe you're an accountant who understands real estate? Real estate investors need to know the practical side of developing a real estate business. You can provide this helpful info and generate business leads, too.

Renovations / rehabbing - You'll find topics ranging from mold remediation to hiring contractors at many REIA meetings across the country. If you're a contractor who also invests in real estate, consider giving an educational or "how-to" presentation.

An instant credibility booster, sitting on a REIA board or committee also helps build people's trust in you as they get to know you and learn how you do business. As treasurer of the New Hampshire REIA and the co-founder of the Boston Area REIA, I have found that my positions with these associations have developed my credibility, helped obtain funding for my own deals, and find lenders for my private lending business.

If your local REIA board lacks vacancies, ask about any committee or volunteer spots that need to be filled. For example, I'm looking for someone to spearhead a new legislative committee for the Boston Area REIA.

(Again, you'll want to add association memberships and leadership positions to your Website.)

As with speaking, writing articles bolsters your credibility while helping you to gain exposure. Plus, if the articles are posted online, they tend to "live" forever, extending your credibility factor years down the road. Don't have an idea about what to write about? See point #4 above.

You can write articles for your local REIA newsletter or Website, other real estate Websites, your own Website, or newsletters such as this one.

And, since you now have a Website (or are going to develop one soon), consider offering a free special report that site visitors can download. Again, the report helps establish your credibility - and acts as a "leave behind" piece of collateral that keeps you top of mind long after people have left your Website.

Nothing takes the place of meeting people face-to-face. Each time you attend a meeting, make it a point to talk to people you've met at previous meetings as well as to meet new people. Experienced networkers often make a goal, such as, "I'll talk to five new people at this event and get their business cards."

If you think you lack networking skills, pick up a book such as, Endless Referrals by Bob Burg or Dig Your Well Before You're Thirsty by Harvey Mackay. Both books offer excellent tips for becoming an expert networker.

All of the above tips are for naught if you don't keep your word. While you're using your network to find people you trust, the people in your network are doing the same thing - and you want to ensure you're on others' short list of "people I trust." The way to build trust is by getting to know people, following through on your commitments, and ensuring all of your business practices are ethical and above-board.

Ann Bellamy is a hard money broker and the co-founder of the Boston Area Real Estate Investors Association. She can be contacted by phone at 603-801-2247, at annbellamy@gmail.com, or via her website at www.buynowhardmoney.com

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