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Where Do I Find a Deal? The importance of Relationships

by | Oct 26, 2020

I often hear the following from new and experienced investors. Where do you find your deals?

The answer to that question is everywhere.

Years ago there was a form of communication that was a daily part of life. It was something that people would wake up every morning so they could open it up and see what was going on the world. Yes, the newspaper, was the #1 way to find opportunities in getting information, finding a job or seeing real estate opportunities.  Now, things have changed in the world of real estate investing and there are many different ways to find opportunities without even leaving the comfort of their home. No wonder everyone wants to be a real estate investor.

Let me give you an example from my current real estate experience. 

A couple of weeks ago I had a big desire to go visit my mom in Baltimore. She is in the later stages of dementia and we do not know how long that will last so, we decided to go visit her. It was going to be a quick flight, however Covid has changed the world and the airport quarantine regulations squashed that idea and thus we decided on going on road trip. We ended up driving 4,000 miles, going through 17 states and seeing a lot of our great country before our drive back home to San Antonio.

On the drive back I got a call from an insurance agent friend of mine who has her real estate license and has begun to do more as a real estate agent. We were somewhere in the middle of Tennessee on our way back from Baltimore and she mentioned to me that she had a client that was selling some lots. It turns out that things have changed in the sellers situation and they discounted the property 50% overnight. After our 2 minute phone call, I told her I would buy it, sight unseen. It was an opportunity to make a quick short term paycheck or build something that could outlive me and continue to bring in residual income to my family for years to come.

So how did I find that deal? 

In reality I did not find the deal, the deal found me!

It was brought to me because of relationships. Relationships are the new currency of our society. Yes, it was a referral from a realtor who I knew, but how many realtors do we know? Lets face it there are thousands of realtors in the United States, so why would I have a realtor call me about a deal that will make me a quick $10,000 to $30,000 or a lifetime of residual income? It is all about relationships and if you want to continue to find or have success in your life I would focus on your relationships. Whether your circle is your family or friends, work on your relationships with them. Whomever you associate with in your specific industry, make sure you foster your relationships with them. Don’t undervalue the importance of developing and building relationships.

There was a young man many years ago that at the University Club of New York spoke about the future of the steel industry. In the audience was a successful financier named J.P Morgan who was the owner of Federal Steel. He listened to the President of Carnegie Steel, the world’s biggest and most successful steelmaker share with everyone in attendance how only by working together and forming a bigger company would all the steel companies be able to take advantage of the new technology and proven leaps in management strategies. Mr. Morgan decided to set up a meeting w the young President, Charles Schwab, and they discussed the buyout of Carnegie Steel by the smaller Federal Steel. Mr. Schwab set up a meeting w the owner, Andrew Carnegie, who scribbled on a piece of paper “$480 million.” Morgan accepted and the worlds largest corporation, U.S. Steel, was born.    

So what does this have to do with You, you may be asking? 

Everything!

Charles Schwab had worked his way up to becoming the President of the worlds biggest and most successful steel company and that came from building relationships. JP Morgan had built up his financial and steel companies by doing one thing very well, building relationships. Andrew Carnegie, the richest man in the world at that time, did it via relationships. Mr. Schwab’s invitation to speak at the University Club of New York was only accomplished by the bridge that was built by the art of building relationships. The various meetings between Mr. Schwab, JP Morgan & Mr. Carnegie were set up because of the trust that was fostered between the three men and that was due to the building of relationships. 

So what is it that you are searching for?

What is it that you are trying to achieve?

Who have you surrounded yourself with on your path top greatness?

Remember this, most people in your life want you to succeed. Although we live in a society that seems to be constantly looking more at the negative aspects of things than the good that can be found in them, You can be the difference in your circle of influence. So, when people express to you their opinion on topics that they have no experience in you have the choice of listening to them or putting your focus on taking heed to the advice from those who are where you want to be. Those successful advisors are a perfect example of the relationships that will help take you where you want to be. 

I know that you are looking at bettering yourself, your situation or maybe upgrading your zip code. You may not be trying to structure a half a billion dollar deal, but I know that you are in search of success. Whether it is financial success, relationship success or any other type of success you are seeking, relationships are Your key to getting to the finish line. Relationships will keep you on the minds of those who are on your side and those who can work together with you in the present and in the future. By keeping your light shining bright for all to see, everyone will want to be a part of whatever it is you are doing, so be ready for a phone call….or an email…or a text…or a direct message… and be ready to answer the call and move closer to your goals.