Your NETWORK is your NET WORTH!
Have you ever heard that saying before? There is truth in that statement. Let’s explore how networking can expand and grow your wealth.
When I was in High School during the early 1990’s (yes I am that old) I had heard the statement about your network being your net worth. This was a time when the internet was just getting started. About the only things you could do online was to use chat rooms or find pornography, unfortunately that was one of the earliest adopters of the internet who saw the potential to make easy money.
So for me that statement about networking was understood to mean more along the lines of having a network of relationships with people who can help you get a better job. Your friends essentially. That part is true and is still true today. To get a job somewhere it is always easier if you have someone on the inside who you can use as a referral. Referrals tend to get higher weight than a random applicant. The same goes for renters wanting to rent an apartment. If they are referred by a current great tenant, it is likely they will be of a similar level of tenant quality. Unfortunately the same can be said on the negative side. If a bad tenant or employee sends a referral, that referral is likely to be similar to them as well. This is because people we are associated with are generally the same type of person as us. You are the sum total of the 5 people you most associate with.
Bringing this up to the 21st Century, networking has taken on a whole new meaning. With so much today that is done online, it is possible to have great relationships with people you have never met in person. They could be on the other side of the world. I have great associations with people in Great Britain, Germany, and New Zealand. And of course all over the United States as well.
I meet with and talk with these people on a regular basis. In fact, I interact with them more often than with the people I see in person around me. Kind of funny if you think about it.
HOW NETWORKING HAS WORKED FOR ME
As you know from reading my posts, I am a real estate addict. I love all things real estate because of the power it has to increase your income and boost your net worth. It gets me excited. Well, as it turns out everything I have achieved in real estate has been done through networking.
I may want to think I did it on my own, but I didn’t. The more I think about it the further back in time I could go with where or how it all started. But I will start with a live event I went to in 2016. It was a guru type seminar teaching about house flipping and selling their program for $50k. I wasn’t going to pay that. But at that event I met someone who introduced me to Bigger Pockets. Had I not spoken with that person that day, I don’t know if I would be where I am now.
That day in October of 2016 led me to join biggerpockets.com and then I devoured the content there and took the 90 day challenge in Jan 2017 to find my first property. I discussed this experience a previous post. That first property that I found in March 2017 and closed on in June is what got me started.
During this time I was networking with people on Bigger Pockets. I would ask questions in the forums and more importantly, I was reaching out to the podcast guests. You have to use some etiquette in doing this. NEVER contact someone asking them to be a mentor with the first contact. I would contact them and thank them for sharing valuable information on the podcast and then maybe ask a question or two as a follow up. And then I would always say that I am willing to help with anything they need.
This led to some great relationships. I also started getting on lists of wholesalers and brokers to send me properties. That too is a form of networking, one that is necessary if you are wanting to find investment properties. Doing this led me to my next deal in Arkansas.
That deal in Arkansas led to the next one a few months later when I got sent an amazing opportunity to flip some land. But, that deal was only able to happen because of the relationships I had been making. I needed a large amount of money to close on that deal and I had networked just enough to be able to make it happen with NONE of my own money in that deal.
Along the way, since my wife is a Realtor in Idaho, I had also been helping to promote her business while commenting on Bigger Pockets. This led to people reaching out to me for a change. I could then have conversations with them as a screening process for my wife but to also find out their goals and what they are looking to accomplish.
Because of that process, I was able to then do the next deal. I had another opportunity in Arkansas to buy some more land but this time I wanted to build on it. One of those client contacts for my wife I thought could work. I contacted him with my plan, he liked it and we then formed a partnership for this deal. We just recently brought in a third partner for additional liquidity and net worth from another one of my more recent networking contacts.
During this time I continued reaching out to more people on Bigger Pockets. I was not active on any other social media. I had a Linked In account that was just there. After I added a new contact on Bigger Pockets I would then try to also find them on Linked In so that they knew I was a real person, even though I was not doing anything on that site. I did not have a Facebook account or anything else.
Eventually I made contact with someone near me in Utah. She had actually been referred to me about a year earlier by someone else I met. But I failed to follow through with that lead. She however was active on Linked In. Through her I got invited to an online meetup event. This is where things got interesting.
I went to a virtual meetup, it was more of just a presentation about investing in multi-family property (apartment buildings). I then connected with the person who was speaking that day. He had mentioned Idaho Falls because he was planning to move there. I live in Idaho Falls. So I once again saw this as an opportunity to bring business for my wife and have a great connection with someone in multi-family.
It turned out that he runs a podcast and a weekly meetup. As we later had a phone call he invited me to be a guest on his podcast.
Through these connections I started to see more activity on Linked In. I went to another online meetup with someone who was a previous guest on Bigger Pockets. I somewhat idolized her for the things she had done. I got on to the meetup at the very end of the presentation. They were going to split up into breakout rooms for personal networking. I did not know what that was and I was too much of an introvert, so it scared me and I left the meeting. I was not prepared for that.
Over time I got better. I went to more meetup events and seminars. One that really helped me was the REI Rocks! Summit hosted by Angel Williams. I got to join the After Party with the presenters and I was blown away! I could not believe I was in a room with these great people.
Because of this networking I had been doing, it helped me to really advance to the next level.
EXPLOSIVE GROWTH
A few years earlier, through the Bigger Pockets networking, I was approached by some people doing development deals in Idaho Falls. At the time I was not interested because the returns they were offering were too low as compared to the deals I was finding on my own. Now in early 2021 they approached me again with another one they were doing offering higher returns. I was more interested now because it was getting hard to find great deals.
I liked their plan and what they were doing. I had mentioned that I was networking with high-level real estate investors that could potentially bring a lot of money to these deals. So I flat out asked if they would be willing to let me join them and participate in these deals if I can take on a role and help bring more investors to these. They agreed and immediately after a huge opportunity came up to develop 800 units. I would never have been involved in that if it were not for the relationships I had been developing online.
Around this time, Spring 2021, I only had about maybe 330 connections on Linked In. I had the account open since maybe 2007 or so, not long after Linked In was created. Most of those connections were coworkers and friends. So yeah, not much had happened in almost 15 years. After I became more active and going to networking events and reaching out to people, that began to grow. I took a challenge upon myself to be more active in making content. I figured the only way people are going to know OF me is if I am visible. They have to see me to know I am there.
So I started making posts. I made some video posts at first just to get over that fear. Then I started making posts about the networking events I was attending and books I was reading and general info on finance and real estate. This worked! In less than a year I have almost 10X’d my Linked In connections. Just over 2500 at the time of this posting.
At that time I was also searching for partners to do syndications with. People who could together form a team and find and do deals together. I was also searching for great properties to either do a joint venture or bring to another team for syndication. I was not having any luck on any of that.
Perhaps fate intervened. I heard a podcast where the guest mentioned buying RV Campgrounds. It seemed interesting. I didn’t understand how they could make money. But being that I am close to Yellowstone Park I started going to webinars and meetings with people discussing these. I started reaching out to offer to be a boots on the ground for anyone looking to buy in my area. In doing that I met some people based in Denver. We chatted and they then invited me to join their team. So now I am on a team that syndicates RV Campgrounds and provides much higher returns than what a multi-family syndication is able to produce. Learn more about that at Happy Camper Capital.
YOUR NETWORK IS YOUR NET WORTH!
Getting back to the topic here. All of those things I just mentioned were all done through networking. Nothing special, no secret sauce. Just going to events and talking with people to learn about what they are doing and what they need and how I can help them.
Going back to that first deal I bought because of the connection I made at a seminar. That property has appreciated more than double the initial purchase price. Therefore my net worth has grown. The land flip, I have no money in, came because of connections. I have ownership in that deal and when it sells I expect to receive a decent six-figure payment. That will increase my net worth. The development in AR, once complete will be worth a lot more than the cost to build and it will cash flow nicely. That has and will increase my net worth. And there is no way I could have done either of those AR deals without the network I built prior to those opportunities arising. The large 800 unit development and the RV Campgrounds will increase my net worth. Impossible for me to be involved had I not been networking and seizing opportunities.
However, the point is not necessarily in what I have ownership in. It is the network itself. The people I know is where the value is. Great deals, and especially large deals, like multi-million dollar purchases can only be done with the help of others. Those others come from your network. If I know two dozen people, each with at least $100k of available funds, that means I can find and purchase something that needs a down payment of $2.4 Million if they all pool their funds together. Which is essentially how a syndication works. And then we ALL increase our net worth through the cash flow and appreciation of that property.
Your network is also the one that sends you opportunities. Both for investments and also potential job prospects or other unique opportunities. Had I known someone personally early on that understood bitcoin and how to purchase it, I would have very likely bought it at the beginning. But I didn’t know anyone who did and I didn’t understand it. Another way to put is is another well-known saying, “It isn’t WHAT you know but WHO you know!”
That is sort of how I am now for my network. Most of them “know” about RV Campground investing or new development projects. But they don’t know anyone doing it to help explain it and walk them through the process. So now I get to be the one to invite them to join me on these opportunities and help educate them on the benefits of it. It is easier to do something together with someone you know and trust than to just blindly jump in or to trust someone you don’t know. I have since joined Facebook and I get solicitations all the time from people wanting me to let them trade cryptocurrencies for me. It is annoying. I don’t know these people at all so there is no way I am going to hand them money and expect them to provide high returns.
NETWORK!
Now you can understand a little about the power of networking. If you don’t know where to begin, meetup.com is a great resource. You can find groups either in-person in your area or online meetups for just about anything you want. It does not have to be about real estate or finance. There are also many Facebook groups, some also meet in person or will also have online events to attend.
Even if you are a total newbie and don’t like talking to people, you can go to these and just listen. Ask questions so you can learn. Speaking from the real estate side, most people are willing to help others who are getting started. We offer advice and can provide resources based on what you need. Books to read or podcasts to listen to or even specific people in your area who can help you. I’m sure most other groups will do the same. But, if you don’t take action, nothing will change.
Luck does not just happen. Luck comes through opportunities that only come to those who are actively working to make things happen. It’s up to us to then act on those opportunities. Had I not taken action on any of those things I mentioned, none of it would have happened. Sometimes it requires a leap of faith. But sitting still will get you nowhere. When I started in 2017, I had a negative net worth, or at least very little if any. I had about $50k in just credit card debt, no savings and not much to show for anything. Now, just 4 years later, I have over a $1M net worth. Change can happen and it can come quickly. I know of others who have done more in less time and some of them are under 21 years old! Anything is possible!
Now GO, MAKE IT HAPPEN!
Thanks to one of my younger connections in my Network who suggested this topic to me. She is a recent college graduate and is taking action, forming meetup groups and writing books. She will be a retired multi-millionaire before she is 30.
And I will mention that I will be speaking on this very subject soon in the REI Rocks! Summit that I mentioned earlier. It was a huge influence on me when I watched it in March 2021 and now a year later I am speaking at that same event! Incredible! I hope to help influence others like it influenced me. It is well worth the cost. Invest in yourself! Here is the direct link : https://theacademypresents.com/summits/
