Blog

Home » Blog » The Power of Networking: How to Build Relationships in the Multifamily Real Estate Community

The Power of Networking: How to Build Relationships in the Multifamily Real Estate Community

Have you ever heard the fable, Stone Soup? If you’re unfamiliar, the gist of the story is a traveler arrives in a town in the midst of famine and sets about cooking a meal for everyone – well, she sets up a pot with some water and a single stone. But she ensures the villagers that this stone soup is magic, and by adding just a few ingredients, whatever they have on hand, the soup would become rich and delicious and feed the entire town. Tired of their meager food supplies, the villagers all begin to contribute: one adds carrots, another adds some potatoes, and someone tosses in some herbs. In the end, they have a delicious soup for all to enjoy, the moral being that by working together and pooling our resources, we can create something greater than the sum of its parts.

 

What does any of this have to do with investing in multifamily real estate?

 

The secret ingredient for the stone soup, and success in multifamily real estate, is this: collaboration. Working together, building and maintaining relationships – in short, networking – plays a key role in helping investors succeed in the multifamily real estate space. Pooling resources and collective knowledge are surefire ways to make better investment decisions and gain access to more lucrative opportunities. Let’s take a look at the power of networking.

 

Why collaborate? Benefits of Networking in Multifamily Real Estate

 

Just like finding the right job or getting into the perfect school, success in multifamily real estate often boils down to who you know. Establishing meaningful connections in the industry – connections to other investors, property managers, brokers, and real estate experts – can unlock many opportunities. Effective networking enables you to delve into untapped markets, uncover valuable multifamily real estate deals, and gain access to the resources necessary for elevating your investment. Whether you’re participating in industry events, becoming a member of a professional organization (or several), or regularly engaging with fellow professionals, building and nurturing a network plays a key role in multifamily real estate investment success.

 

Networking in the multifamily real estate space offers several benefits that can contribute to the success and growth of investors in the industry:

 

  1. Access to Opportunities: Networking provides access to a wide range of opportunities, including potential partnerships, investment deals, and property acquisitions. Building a strong network increases the likelihood of discovering new, exciting prospects in the multifamily real estate market.
  2. Market Knowledge: You don’t know what you don’t know – which is why interacting with professionals and “old hands” in the field is a must in order to gain insights and industry knowledge. Keeping up to date with industry trends, market conditions, and regulatory changes is crucial for making informed decisions in any realm of investment, multi-family real estate included. Learning from other’s experiences can help streamline operations and improve efficiency in managing multifamily properties.
  3. Resource Sharing: Besides sharing knowledge, networking facilitates the sharing of resources which can improve your overall investment. These resources include property management software, market research tools, or new and improved real estate websites. 
  4. Opportunities for Collaboration: Building relationships with other professionals in the multifamily real estate market, such as property managers, investors, and other service providers, create opportunities for collaboration. The partnerships resulting from these connections can lead to new opportunities, improved operations, and a larger impact in the multifamily real estate landscape.
  5. Visibility: Establishing a strong network can enhance your visibility within the multifamily real estate sector. This increased visibility can lead to more opportunities for collaboration and investment.

 

Strategies for Effective Networking

 

We’ve navigated the why in networking; now let’s look at how to network in the multifamily real estate industry. This involves a combination of interpersonal skills, strategic planning, consistent efforts, and figuring out exactly where to meet these people. Here are just a few strategies to boost your networking efforts:

 

  1. Attend industry events: Attend conferences, seminars, and networking events focused on multifamily real estate. These meetups provide opportunities to meet professionals in the space, learn about market trends, and establish valuable connections
  2. Utilize online platforms: Engage with online forums and social media groups dedicated to multifamily real estate. Platforms like LinkedIn, BiggerPockets, and real estate-focused Facebook groups allow you to connect with professionals, join discussions, and share insights.
  3. Join professional associations and organizations: Become a member of industry-specific organizations, like the National Multifamily Housing Council (NMHC) or real estate associations in your area. These memberships often provide access to exclusive events and even more networking opportunities.

 

Building and Nurturing Relationships

 

Remember: successful networking – in life, business, and multifamily real estate – is built on genuine relationships and mutual benefits. Authenticity, active listening, and a little patience go a long way in networking success. And while it can take time to build these relationships, the effort is well worth the wait. A well-nurtured network is a valuable asset that can make or break your multifamily real estate strategy. Here are just a few tips to help build and nurture relationships in your growing multifamily real estate network:

 

  1. Be Authentic: Building genuine and authentic relationships means that you in turn must be genuine and authentic. Authenticity fosters trust and credibility, both of which are crucial to building up your reputation in the multifamily real estate space. When engaging with others, be sincere, transparent, and true to yourself, as this authenticity will contribute to the strength of your professional network. 
  2. Provide Value to Others: Be generous with your knowledge and resources. Providing valuable information, insights, or introductions to others in the industry can help establish your credibility and make you a sought-after network member.
  3. Follow up and Stay Connected: This is simultaneously easy and incredibly difficult. Many of us fall prey to our busy schedules and miss out on valuable opportunities by simply not following up with new connections. But consistent communication, whether through emails, phone calls, or face-to-face catchups, reinforces your commitment to the relationship and helps cultivate long-term connections. 

 

Summary

 

In multifamily real estate, success hinges on more than just property knowledge – it’s often all about the connections you make. Just as the humble rock in Stone Soup became a feast through collaborative efforts, networking offers investors the opportunity to pool resources, share knowledge, and create something greater than the sum of its parts. Building meaningful relationships and collaborating with investors, property managers, brokers, and industry experts could be the game-changing event that leads to new opportunities and investment success.

 

Looking to amplify your networking efforts? Jake will be at Pay It Forward Multifamily Mastermind on May 2-4, providing attendees with an invaluable opportunity to expand their network and deepen their understanding of the multifamily real estate industry. Use code ‘jake2024’ and save $100 on registration. Click here to register for Pay It Forward.