Establishing Credibility When You are Starting Out

New investors are faced with establishing credibility with sellers, buyers and lenders.  You need to establish trust and loyalty with the people you do business with.  This includes vendors you do business with as well.  Here are some tips that may help you get started on the right track.

With Sellers

Getting sellers to trust you takes effort and time.  One way to do this is to tell everyone you know that you are real estate investor, that you want to buy property and you can close the deal quickly.   Once you find some good leads, you will need to make a telephone call and several visits to get the seller to trust you and want to work with you.  It’s a good idea to form a relationship with as many owners as you can whose property meets your criteria.  Keep calling them, sending information and dropping buy.   It make take a few months or even a year to get them to sell, but when they are truly ready, they will call you first.

With Your Buyers

You must constantly be compiling lists of buyers for your properties.  When you have a good deal, call your buyer and let them know right away that you are thinking of them.   If you are fair and honest with them, and they end up making money, they will be calling you for more deals.  You want to establish a good rapport so that they tell their friends, and you get referrals.  Repeat business keeps you in business.  Without trust, honesty and loyalty, you will be out of business quickly.

With Lenders

Be prepared when you talk to a hard money lender.  Show them the following information so they know you are serious:

• Copy of the Contract
• Photographs of the property
• Property appraisal
• Inspection reports
• Spread sheet on the numbers, including all your closing costs and estimates of repair costs
• Time table

The more information you have at hand to give them the better chance you have of doing business together.  They will see that you are serious about your investment and will want to do business with you.  Once you pay off your first loan on time, they will be ready to do business with you again.

Vendors

Pay your vendors on time.  Keep them busy with your projects, and refer other investors and buyers to your vendors, and they will return the favor by referring you business.  Don’t be afraid to negotiate prices with your vendors.  They will understand and respect you for this.  If you have a budget, express that to them that you want to do business with them, but your budget is a certain amount.  Most will work with you because they want your repeat business.

Reputation is important in this business.  Earning people’s trust and respect will allow you to grow your business and increase your long term wealth.  Always treat others the same way you expect to be treated, and you will be successful in your real estate investing career.