How to Increase Your RE Investor Network via Volunteering
A common question I receive, in regards to raising money for multifamily investing, is “Joe, I don’t have the right network to raise money, so what should I do?” Depending on your situation, this may actually be the case. At a time where the median income of the United States is around $55,000, statistically speaking, it is impossible for everyone to have one, let alone multiple trusting relationships with individuals that have $50,000 or more in cash to invest. So, for those that don’t have a network of investors or are looking to scale, here is a short and simple tip to increase your money raising network: Volunteer.
Find a nonprofit organization that aligns with your values, interests, beliefs, etc. and volunteer. Make sure that it’s something you’ll honestly enjoy doing. Tony Robbins famously said “the secret to living is giving,” and I am a firm believer in that philosophy. Therefore, the main purpose is to give back. However, your secondary, real estate related goal is to become a board member. It is likely that the board members are going to be affluent. That is, a high net worth individual. Once you’ve become a fellow board member, they will be likely be more interested in building a relationship outside of volunteering and learning more about your personal and/or business goals. This is a perfect transition into discussing your real estate syndication business.
The key is to really bond with the board members while, not expecting anything else in return. Again, you’re main goal isn’t to attend your first board meeting and pressure the members to fork over their cash. The goal is to contribute to the organization by doing something that you genuinely enjoy. Then, slowly and organically, get to know other volunteers and board members.
Volunteering and becoming a board member is a long-term approach. However, it is an approach that I have successfully implemented, so I know it works. By volunteering for causes I believe in, I was able to build relationships with others that shared my beliefs, which resulted in millions of dollars in multifamily investments. I am the board member for the nonprofit organization Junior Achievement in Ohio, as well as for the College of Media and Communications at Texas Tech University.
Google “Volunteer Opportunities in (insert your state) to get started. Make a list of 3-5 potential opportunities and see which one is the best fit based off what you are passionate about.
Disclaimer: The views and opinions expressed in this blog post are provided for informational purposes only, and should not be construed as an offer to buy or sell any securities or to make or consider any investment or course of action.