More than many other businesses, commercial real estate is a relationship-driven industry. Clients often turn to those they trust for referrals, which means success can hinge on who — rather than what — you know. That’s why it’s critical for mortgage originators and commercial real-estate brokers to prioritize networking.
But how can you approach networking best to maximize your chances of success?
The benefits of networking
Networking offers numerous benefits to commercial real-estate brokers and mortgage originators. Perhaps foremost among these is getting access to off-the-market deals. The earlier you can participate in a particular project, the more influence you can often have over the course of its development. Whenever you get wind of a deal before it’s official, you can work to arrange the most favorable terms.
Referrals are another benefit of networking. When someone’s friend or family member needs a mortgage, it can be invaluable for someone in your network to mention your name and pass on your contact information. This is especially true if the referrer is a trusted professional in the industry themselves. People prefer to work with someone recommended by a knowledgeable source if possible. I myself have secured financing in this way for my own business.
Networking can also lead to partnerships with property developers. If one project goes well, more may well follow. Meeting and connecting with just one such developer can become a long-term relationship that benefits both parties on an ongoing basis.
In my experience, networking can also bring welcome surprises. Experts sometimes let valuable market insights drop in off-site locations, such as at a happy hour or on the golf course. When people let their proverbial hair down and relax, they sometimes become more willing to tell you what they really think.
In short, the more you widen your circle, the more people can open doors for you and usher opportunities your way. That’s how to build a reputation and a successful brokerage. Despite these advantages, however, many people hate the idea of networking and have a hard time getting themselves to do it.
Taking a positive view of networking
Granted, the idea of networking can conjure up stereotypes of people being fake for the sake of socio-economic mobility. Nobody likes to think of themselves as behaving like a social climber. Indeed, research shows that networking can even make people feel dirty.
At its core, however, networking doesn’t have to be so transactional in nature. Instead, a simple shift in mindset can help — networking allows you to meet like-minded people and talk about shared interests or concerns. In this way, we can think of networking as a way to connect with others authentically. A happy side effect is that it may also lead to lucrative collaborations in the future.
Therefore, my first piece of advice is to be genuine in your interactions. You don’t need to pretend to be anyone other than yourself. Indeed, pretending is likely to backfire, anyway.
How to network effectively
The secret to effectively networking is this: rather than viewing people with an eye to how they can help you, consider how you might help them. Offering value and being of service to others is a great way to create closer ties. Networking isn’t just about who you know. It’s also how you contribute to the success of others.
Building relationships takes time, so be patient. Reliability is also important, so be consistent and follow through on your word. It’s important to maintain these connections over the long term, so stay in touch regularly. If someone needs assistance, offer what help you can. If someone helps you, don’t forget to show your appreciation.
Time management is crucial to balance these efforts with your day-to-day responsibilities. That’s why I recommend allocating specific time slots for networking activities. Toward this end, use time blocking to protect your schedule and avoid double booking.
I also advise people to start small. Don’t try to join every industry group, attend every event, and follow every social-media community all at once. Instead, pick the group or event that appeals to you most and start there. Prioritize activities that offer the most value, and don’t spread yourself too thin. Effective networking doesn’t always require constant effort — it’s about quality connections.
Invest in networking
You never know who’s going to find themselves in the position to grant you a referral or steer a deal in your direction. But if you take a broad, long-term, and open-minded approach to networking, numerous times will come when you’ll find out. When those moments arrive, you’ll be glad you invested in networking.
