Real Deal REInvestor Network

Recently I shared how to set up a professional looking Facebook profile.  Now that you've set things up, you are ready to grow your valuable network.  Before we start growing our network, let's discuss the way Facebook works and some of the unwritten rules.

Networking with others on Facebook allows you to have conversations: publicly on the wall, privately through instant message or messages like email.  You have to become “friends” with anyone you would like to communicate on a regular basis.  Once you have a few friends, Facebook makes suggestions for other people you might know and make suggestions for others to become your friends.  It all becomes quite viral, so you want to get started with the right kind of real estate contacts.  Facebook also allows you to download a list of contacts from Hotmail, Google, Outlook or other email programs.  If you are new to investing, you probably don’t have a long list of real estate investors in your contact list.  Before we get adding a huge list of friends, let’s look at a few Facebook rules.

 

Facebook will shut down your account if you violate these rules.  Facebook does not want spammers or computer programs, known as bots, adding friends without desecration.  The exact number is not known, but it seems you can safely add up to 20 new friends a day with no problems.  There have been some reports of accounts being shut down for adding 25 or more new friends within a 24 hour period.  Of course this often varies based on the number of friends you already have.  That is, new accounts can add more friends without penalty.  There have been additional reports of problems when more than five friends are added within a five minute period.  Basically, Facebook doesn't allow you to send out an unlimited number of requests in a day.  By following the things listed below, you'll not have a problem.

In the off-line world you introduce yourself prior to starting a conversation with a new contact.  Social media behavior should be no different.  If you are growing your network with new people, reach out to them and let them know who you are.  You can to this by adding a message when sending a friend request.  Make it a personal message that tells the recipient who you are and why they should be your friend.  You can even write out a general statement and use cut & paste to save time.  I like to make mine a little more personal, depending on who I’m adding as a friend.  This technique increases the likelihood that your friend request will be accepted.  Here is a great example of a request I received today:

 

Martin Girard — 6 mutual friends

    Hi Dana, it looks like we have a mutual friend in Brian Fanale! I am looking to connect with people who enjoy networking using the power of the internet. Have a great day and let's connect!    

Add to List

  Send Message

 

 

If you are just starting your real estate network on Facebook, then start first by adding some of the well known “gurus” as friends.  People like Danny Welsh, Rick Melero, and David Lindhal are well known in the real estate world.  Anyone that has a real estate course for sale will generally have a broad network.  Add up to 20 of these top people a day, with a personal note, for several days.  This will quickly add to your real estate network. 

 

In future postings we will discuss how to really connect with people, and the power of Facebook Groups.  Until then, grow your network to grow your net worth.

Facebook isn't just for playing games; it can be a serious way to increase your network if done right.  Or it can be a time sucking hole in your day if done wrong.  First, let's take a quick look at some of the things going on at Facebook.

Facebook  claims to have over 400 million users of which 50% log on each day.  More than 30 million users update their status daily.  That's a ton of people.  Do you think you might be able to find a few that are wholesale buyers, private lenders or perhaps have a distressed property that might fit your criteria?  Absolutely!

So you've had an account for a while and all it's led to is a bunch of pillow throwing or farmville exchanges.... Stop what you're doing and read on.  For those of you that do not have a Facebook account, go to http://www.facebook.com and sign up for an account.

Set up your profile in a professional manner.  Facebook will run you through a series of questions about yourself.  When it comes to your personal information include real estate investor as an activity or interest.  If you specialize in a certain aspect of real estate, make sure you make mention of this.  You want to build credibility so be careful about your favorite movies, music and books.  While you may love slasher music, it may not help build your credibility with a private investor looking to place $1M into a private equity offering.  It is critical that you fill out the information and make it as personable as possible.  People want to know you are a real person.

Be truthful!  People will pick up on inconsistencies and will not trust you.  Facebook is just a starting place to get acquainted more with your target audience.  You want to build trust so that they will reach out to you on your phone or via email.

Use a professional picture for your profile.  This is business, not the time to show your cat, dog, car or whatever.  You can add pictures of your pets later.  I see some investors put up pictures of mansions or exotic cars.  Unless you truly own a Lamborghini, you shouldn't have that as your profile picture.  Even if you do own one, it seems a little egotistical to make that your picture.

For your websites you can list as many as you like, but I wouldn't add a ton.  Many people list every social network link in the world and several squeeze page websites.  Too much!  The first website you list should direct them to a place you can connect with them more.  It may be a blog, it may be your “I buy houses” website, or anything else you where you want to drive traffic.  Just know that no one will click on the tenth link so choose wisely.

In the about you section describe what you are offering.  For example: I help homeowners facing difficult times get out from under the burden of debt and avoid foreclosure sounds better than I buy distressed properties.  If you are putting together commercial real estate deals then say I work with investors to provide a solid investment in commercial real estate that provides significant cash flow and appreciation. 

Some people value education more than others.  Clearly there are many very wealthy entrepreneurs that never finished college (Bill Gates).  In many cases you will be looking for accredited investors which are high net worth, high income earners.  Many of these people value education.  You'll have to weigh the value of putting in your education if you didn't go to college.  It's all about building credibility.

Phone number or no phone number?  Address or no address?  This is a personal preference.  I vote no because my time is valuable and there are a lot of spammers that will waste my time.  I do send my phone number, email, or address when I choose to connect.  I do this through a private message.  You will ultimately need to make the call.

 

Now that you’ve got your profile set up, you’re ready to start creating a valuable network.  In a future blog we will discuss how to target the right friends and provide them value to increase your network and your credibility.  Until then, build your network!

 

Dana J Lange

“Millionaire in Training”

I often hear people say, "I'm logical and I make decisions based on logic."  The interesting thing, many of these people have advanced degrees and are extremely bright, some even brilliant.  What I do notice, however, is that not all of these people drive the same types of cars, eat at the same restaurants, or vacation in the same places.  Perhaps, everyone has some bias and emotional ties to their decisions.  When you ask people why they chose a particular car for example, they will often list the features (safety, JD Powers Rating, etc.)  A few will say, "It really makes me feel cool when I'm driving XYZ car."  Even the best investors can make the mistake of buying based on emotion.  Which leads me to the use of decision criteria.

Prior to making any big decision: investing in a property, stock, or choosing the final 3 MMM Challenge candidates, one should list the things that are important.  The MMM Challange for example: desire, experience, hard working, ability to network, how they fit on the current team and the list goes on....  List those important attributes, then rank them in order of importance.  Then the decision and ultimately the discussion is about the candidate compared to the criteria.  This helps everyone derive the same conclusion based on the pre-set criteria.  Emotions are kept in check.

This little technique will also help in making better investment decisions.  Investments will be aquired based on the numbers and the desired outcomes.  It will prevent investing because the house reminds you of your childhood or the owner is a real nice guy.

Next time you have a big decision to make, put aside some time to list the criteria you will use for making that decision.  It will increase the speed with which you make decisions and increase the quality of those decisions.