Real Estate Concepts - September 06, 2024

The Power of Networking: Building Connections in Real Estate

September 06, 2024

Abby Blumenfeld
By Abby Blumenfeld

Networking is often hailed as a cornerstone of success in many industries, and real estate ranks prominently among them. For young investors, particularly women entering the commercial real estate sector, the importance of building and maintaining a strong network cannot be overstated. This relationship-driven business thrives on connections, and networking is a critical component of finding and securing lucrative investment opportunities.

Why Networking Matters in Real Estate

In commercial real estate, deals are often based upon relationships and trust. A strong network can open doors to opportunities that might not be publicly available. Whether it’s getting the inside scoop on a prime property before it hits the market or partnering with seasoned investors on a new project, who you know can be just as important as what you know. This principle is at the heart of EquityMultiple, founded in 2015 by Charles Clinton and Marious Sjulsen. The inspiration for EquityMultiple came when Charles was exploring the idea of purchasing a building in Brooklyn with friends. He quickly realized that without the right connections, large-scale real estate investing would be daunting and difficult. To bridge this gap and democratize access to real estate opportunities, EquityMultiple was born. Today, our platform provides access to previously unattainable, high-quality commercial real estate investments.

For young women in real estate, networking can also provide invaluable support and mentorship. The industry can be challenging to navigate, but a robust, thriving network of like-minded professionals can offer guidance, share experiences, and provide encouragement. Building these connections early on in your career can help establish a foundation for long-term success.

According to a survey by the National Association of Realtors (NAR), 63% of real estate professionals said that networking is crucial to their success. The same survey indicated that a majority of successful deals often come from referrals and word-of-mouth, underscoring the importance of building a reliable network.

Tips for Building a Strong Network

  1. Attend industry events.
    • Conferences, seminars, and trade shows are excellent opportunities to meet other professionals in the real estate sector. These events often feature networking sessions designed to help attendees connect. Events like the Real Estate Investment Summit and the Urban Land Institute (ULI) conferences are great places to start.
  2. Join organizations dedicated to real estate professionals.
    • Becoming a member of organizations like the Urban Land Institute (ULI) or Commercial Real Estate Women (CREW) can provide access to a vast network of industry professionals. These organizations often host events, webinars, and forums that can help you expand your connections.
  3. Take advantage of social media.
    • Platforms like LinkedIn are powerful tools for networking. Consider joining real estate groups, participating in discussions, and sending connection requests to real estate professionals with mutual connections. Sharing your insights and commenting on others’ posts can also go a long way in establishing your presence in the community.
  4. Attend local meetups.
    • Using sites like meetup.com, look out for real estate investment clubs or local meetups in your area. These smaller, more informal gatherings can provide a more relaxed setting to build relationships and learn from others.
  5. Seek out mentors.
    • Finding a mentor in the industry can provide you with valuable insights and guidance. Don’t be afraid to reach out to experienced professionals and kindly ask for advice or mentorship. Mentorship can significantly accelerate your learning curve and help you avoid common mistakes.
  6. Offer value to others.
    • Networking is a two-way street. Look for ways to provide value to others, whether it’s sharing expertise, offering help with a project, or connecting someone with a useful contact. Building a reputation as someone who is generous and helpful can strengthen your network.

Leveraging Connections for Investment Opportunities

Once you’ve built a strong network, the next step is leveraging those connections to find and secure investment opportunities. Here’s how:

  1. Stay informed about what’s going on within your network.
    • Keep in regular contact with your network to stay informed about market trends, new developments, and potential investment opportunities. Periodic check-ins, whether through meetings, calls, or emails, can keep you top-of-mind when opportunities arise.
  2. Collaborate on real estate deals.
    • Partnering with other investors or developers can provide access to larger and more lucrative deals than you might be able to secure on your own. Joint ventures and partnerships can also spread risk and pool resources.
  3. Be on the lookout for off-market deals.
    • Many of the best deals in commercial real estate are not listed publicly. Being part of a well-connected network can give you access to these off-market opportunities.
  4. Seek out insights and advice from your network.
    • Use your network to gain insights and advice on potential investments. Experienced professionals can provide valuable feedback on deals you’re considering and help you avoid common pitfalls.
  5. Build a reputation for yourself.
    • A strong network can help build your reputation in the industry. As you become known as a reliable and knowledgeable investor, more opportunities will come your way.

Real-World Examples of Networking Success

To illustrate the power of networking, I’d like to share a bit about my own real estate investment journey. 

By attending industry events and joining organizations like NAR, I connected with seasoned professionals who provided mentorship and introduced me to investment opportunities I would have otherwise missed. My network also brought me together with real estate agents and other professionals who have been invaluable to my growth. This support significantly accelerated my career.

One notable example is a residential real estate project where I partnered with more experienced investors. Through this collaboration, I secured funding and expertise that would have been out of reach on my own. The project was a success; it boosted my credibility in the industry and eventually opened doors to future opportunities.

Conclusion

It goes without saying that networking is a vital skill for success in commercial real estate. If we put effort into building and leveraging a strong network, we can all navigate the challenges of this industry, access exclusive opportunities, and eventually accelerate the growth of careers. Remember, in this relationship-driven business, the connections you make today can be the key to your success tomorrow. So, get out there, build those relationships, and watch your real estate career take off.

For more insights and strategies on commercial real estate investing, visit our blog homepage.

The information contained in this article only represents my personal experience, and does not constitute financial advice. Consult a qualified financial advisor before making investment decisions.

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Abby Blumenfeld
Abby Blumenfeld
Abby Blumenfeld is the Senior Investor Relations Analyst at EquityMultiple. Originally from Massachusetts and a graduate of Quinnipiac University, Abby has an extensive background in both commercial and residential real estate. Before joining EquityMultiple, she gained experience working with commercial properties at Cushman and Wakefield. Her experience includes both the New York City and Boston real estate markets. At EquityMultiple, Abby is responsible for developing relationships with prospective investors, ensuring clear communication, and serving as the primary point of contact for investors. If you reach out to EquityMultiple, there’s a good chance you’ll interact with Abby during your journey. Outside of work, Abby enjoys playing pickleball, tennis, and traveling.

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