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You’re an investor, looking to set up some kind of space for work, or even a place to live, and there’s a sea of real estate companies and agents out there. So, how do you know which person you fish out is a good fit for you? Real estate referrals. As an agent, we all know how fantastic real estate referrals can be, but how exactly do we get one?
What is a Real Estate Referral Referral?
Aa referral is any process that involves one investor telling another potential investor about a company, brand, or individual’s services. These are essential for investment companies because they build trust and brand image. Real estate referrals are one of the most sought-out aspects of any business in sales and investment for three main reasons:
- They’re easy: one of your investors is helping you find a potential partner!
- They’re great for building a brand: with real estate referrals, your investors can help you build a community around your business.
- They build trust: You trust your investor, and their referral is proof they trust you. By association, the potential investor referred to you will think highly of you as well!
The Biggest Challenge
Of course, real estate referrals sound great! But there’s one major roadblock that can stop any business owner or real estate agent dead in their tracks. Referrals are not guaranteed. Sure, people think about recommending a new kind of phone or computer to a friend, or they might suggest a restaurant to eat out at. These are all types of real estate referrals. However, most people don’t think about referring a real estate agent to their friends. But, real estate referrals are one of the best ways to gain investors, so how do we do it?
Asking for Help
Asking your investor for referrals can help them remember to refer you in the first place. However, there is a time and place to ask for referrals. When your investor is especially happy with an interaction– that’s the time to ask. Some great examples of when to ask for referrals include:
- After you’ve given them an investment check.
- After you’ve cashed out a deal with your investor.
- After your investor compliments you.
You can ask for referrals by offering to leave some business cards with your investor, or see if they know anyone specifically who is looking into what your offer. Maybe they can introduce you!
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As mentioned before, referrals are a great way to build trust with investors. When working through the referral process, you’ll be communicating with both your current investor and a potentially new investor, and you can strengthen your relationship with both of them. For example, always thank the investor who referred you. They are going out of their way to help you, so show your gratitude! Sending a personalized card is a great way to thank investors early on, even if the person they’ve referred doesn’t follow through with their investment.
You can also build trust by keeping your word. Notify your investor and your potential investor of what you’re going to be doing (say, make a follow-up call to see how much space they need), and then do it. The task may seem basic, but it’s crucial to building trust. Once you’ve got your referral in the bag, thank them, and thank the investor who recommended you once again. This time, consider giving them a gift as thanks, so you can show your gratitude and friendship.
Want to take a deeper dive into what you learned in this article and more? Interested in Raising Capital to Grow Your Property Portfolio? If so, grab a free copy of my
book “The Money Partner Formula” and I’ll show you how to access as much investor
Capital as you need to buy as many properties as you want.
If you would like to learn more about the benefits of real estate referrals, click the link below to book a free strategy call with our team at LendCity.