Real estate is built on local relationships. Information about upcoming property sales is often shared only within a trusted circle — friends, family, and close connections.
Experienced investors know the best opportunities come through word of mouth. A property usually circulates before hitting a listing site, and great deals often disappear within days.
Building Strong Partnerships
According to a study from the National Association of Realtors, over 70% of sellers choose the first agent they speak to. That means the realtor’s partners find out about the property first. As an investor, it’s important to work on relationship-building to know what’s going on in the market.
To secure the best investment opportunities, strategic investors make sure they are the first to hear about available properties. They achieve this by actively building relationships with the key players who interact with sellers first—real estate agents, contractors, and local businesses involved in the process.
Don’t overlook collaborations with skilled real estate investors, too. Sometimes, an investor may pass up a good opportunity because they can’t take it on at that time. But if that individual knows that someone else is interested in a similar investment opportunity, they may pick up the phone and reach out.
The Value of Local Market Knowledge
Real estate investors face challenges navigating unique market nuances. Local professionals provide valuable insights into neighborhood dynamics. They highlight planned developments and property value trends. Local contacts reveal potential property or neighbor issues and renter-to-owner ratios. They also share details about nearby attractions. This insider knowledge gives investors an edge, helping them make more informed decisions and avoid potential pitfalls.
Market competition is another hurdle. In popular areas, strong investor networks can be highly competitive, making it essential to build relationships that allow you early access to potential deals.
By forming connections with local businesses, investors can stay apprised of little things they wouldn’t know without having a conversation. For instance, an investor might find out about a property going up for sale from a landscaping professional who recently reworked the owner’s yard. Or, a realtor may inform them of a commercial property opportunity with great tenants.
By leveraging local expertise, they can take advantage of the knowledge to pounce on opportunities when they arise — and be one of the first people on the scene.
Lastly, ensure transparency in partnerships. Not all collaborators will share the same ethical standards or communication practices, so aligning with trustworthy partners who prioritize clear, open communication is key to mutual success.
Partner with Dominion Financial
Dominion Financial is a leading provider of short-term bridge loans and long-term rental loans. We help investors secure funding on their next real estate investment.
