Dig Your Well before You're Thirsty

Advice you need today from Trump University Real Estate 101

Because no one makes it alone in real estate, you need a network of professionals that includes: lenders' reps, real estate agents, title companies, property inspectors, lawyers, zoning/building regulators, handymen and handywomen, contractors and, of course, sellers, tenants and buyers.

When should you begin to start to get to know these people and have them start to get to know you? Now! As Harvey Mackay puts it in his book Pushing the Envelope, "Dig your well before you're thirsty."

Join your local real estate investment club. Go out and call on a variety of loan reps and loan brokers. Learn about the deals they're doing. Learn what kind of deals they want to do. Ask for names or dependable, competent and reasonably priced service providers. It's never too early to build up your Rolodex or Palm Pilot.

But remember, don't become a parasite who takes, but never gives. Reciprocity is the name of the game. Ask how you can help the other party. People in real estate and related services appreciate referrals. When you know someone who's about to buy, sell, borrow, or renovate, give him or her the name of a service provider with whom you would like to grow a relationship. In tandem, tell that service provider that you referred someone to him or her.

I once referred an investor friend to a real estate broker with whom I had previously done business in Dallas. I didn't think much more about it until six months later, when I opened my mail to find a thank-you note from the broker and a check for $10,000. It seems my friend (whom I had not recently talked with) had just closed on a $2.7 million neighborhood shopping center. Now that's reciprocity! To build and nurture relationships, live those three very big words: quid pro quo.

Trump University faculty member Gary Eldred, PhD, is a real estate investor and author of many best-selling books on real estate, including: Investing in Real Estate, The Beginner's Guide to Real Estate Investing and The 106 Common Mistakes Homebuyers Make (and How to Avoid Them). This blog post is adapted from Dr. Eldred's newest book, Trump University Real Estate 101: Building Wealth with Real Estate Investments.

Editor's note: Dr. Eldred has developed and taught many real estate courses for Trump University, including Real Estate Goldmine: How to Get Rich Investing in Pre-Foreclosures and Bubble-Proof Real Estate Investing.