I know for myself, business relationships are very important. If I stopped & thought everytime “how will this person help me in return” to every person I come in contact with, then I really wouldn’t be where I am now. God put us here on Earth to be a special part in His plan & to help eachother out. Establishing relationships is a part of life whether it’s business or personal. When I show my appreciation to my colleagues, I’m happy to buy gifts\certificates, dinners, flowers, spa packages, etc. When I didn’t have the money, inviting everyone over for a home cooked meal always did the trick! It’s a great way to introduce brokers, investors, bankers, & contractors together. Everyone eats & enjoys! Networking is a powerful tool … Happy House Hunting!
The importance of building relationships - Posted by SCook85
Posted by SCook85 on December 11, 1998 at 08:42:13:
I would consider that what I have done so far in real estate investing to be a good start. I was talking to another investor yesterday who was envious of the relationships that I have with my realtor,my settlement attorney, and my contractors. He wanted to know why they all work with me but not with him. Why they call me all the time and make sure I know about the best deals, how my deals are going, and the progress of my projects. I told him that it was very simple. My realtor faxes new deals to me almost everyday. When we completed our first deal I sent her flowers thanking her for all of her hard work and took her to lunch. My settlement attorney was calling me at 11:30 p.m. on a Sunday to get a deal that went a little astray done on Monday morning. I gave hime a gift certificate to a real nice restaurant for his efforts (which I truly felt were above and beyond the scope of what is expected of them), and when my contractor calls me with a quote and I ask whe the job is going to be done I offer to pay him more if he meets that goal, I don’t talk about penalizing him if he doesn’t.
My people like me and like to work for me. They know that I appreciate it. I don’t beat them up on there fees, comissions, and costs. I know that they have to make money too. As long as I am doing well and making money I don’t care how much they make, and I also show a little extra appreciation. It goes a long way. I’m getting ready to recognize all of them this holiday season, don’t know exactly what I am going to do yet but I can bet most of them won’t get anything from the other people they work with.
I just wanted to give everyone something to consider this holiday season. A little appreciation goes a long way with those you work with.
An oft repeated theme in his three books is that he has good working relationships with his (fill in the blank - contractors to whatever) which give him an edge over the competition.
Re: The importance of building relationships - Posted by Vance(Canada)
Posted by Vance(Canada) on December 11, 1998 at 16:05:10:
Scott is SO right! Whenever I read about a successful business or ANY kind, it is the people behind it.
Happy suppliers, contractors, realtors, your spouse and family, employees, etc… If you keep these people happy, which usually means motivated, your business has the best chance of success.
Scott’s technique of following up deals is used everywhere and it works. It cements your name in their mind. When someone wants a traditional “job” and uses a resume and has an interview, that follow up may be all the difference.
Don’t do what everyone else is doing, and go the full 100% and you will be successful!
Re: The importance of building relationships - Posted by Jim Simons
Posted by Jim Simons on December 11, 1998 at 11:49:54:
Boy, you hit the nail right on the head. I’m going to save your post and read it once in awhile just to remind me.
Your post brought to mind a really good book I read once. It was called “What They Don’t Teach You In Harvard Business School” (or something close to it). The book stresses the point that ALL Businesses Really boil down to relationships with people.
I think I’ll see if I can find it and read it again.
I was wondering if the realtor that you work with is a “buyer’s broker”? I’ve spoken to 3 of them over the last month and they each require that I sign a contract obligating me to pay 3% of the purchase price of whatever home I buy from them. I understand that they need to make money too, but I explained to them that I plan to flip my homes in the beginning and that there wouldn’t be enough room for my profit and their 3% commission. I wouldn’t mind paying them 3% of my profit - but they want their commission to come directly out of the total purchase price. That’s why so far I haven’t had any luck with them. I’d appreciate any suggestions.
Re: The importance of building relationships - Posted by Paul Macdonald
Posted by Paul Macdonald on December 12, 1998 at 08:05:05:
You’re probably not going to get very far with that attitude. They need to make a real profit also. Your profit comes out of the total purchase price. So should theirs.
But stop for a minute and see if you are looking at this thing correctly.
you don’t buy from the realtors - you buy through them.
the only time you’d have to pay the 3% is if it was a FIZBO. If its listed in the MLS/MRIS system the seller has already agreed to pay X%. Of which half tends to go to the selling (your buyer broker) agent. When you buy, its the seller on the hook not you.
become a proven commodity. Once you’ve bought or sold something through the agent, that agent knows you are here to actually perform. That you are not just talk. Ask for an ongoing commission break than. And shop for agents that pocket the full 3-6%. They are much more likely to bend than the ones who split with their brokers. In my area REMAX and JOBIN are the biggest 100%ers.
If its win/win everybody plays. If its only you win