“Find out where the people are going and buy the land before they get there.”
— William Penn Adair
I’ve done some amazing deals, had some great returns, and met some amazing people.
The best deal that I’ve done consistently over the years has been our ATM fund.
I heard about it when a friend gave a big endorsement.
At the time, I thought: “I haven’t used an ATM in years! Who’s still using ATMs?”
I didn’t realize 10% of people in the US don’t have a bank account.
They’re frequently using prepaid debit cards and ATMs.
It’s become the most consistent cash flowing investment I have found.
ATMs aren’t the only investments I’ve found this way.
Some of my best alternative assets are private deals I hear about from other people.
Today, I’m going to share how I develop those relationships and how you can as well.
Let’s jump into it!
1. Networking, Networking, Networking
Even if you’re a passive investor, you should learn the art of networking.
I know a full-time passive investor who spends close to 30 hours a week networking.
I asked him why he did this.
He told me he wanted to hear about great deals.
If you want to get in a deal flow, you need to network.
Charlie Jones has a famous quote where he says:
“You will be the same person in five years as you are today except for the people you meet and the books you read.”
I think books and education go hand-in-hand.
The people you meet can educate you in a lot of ways.
I’ve made connections that have made me millions of dollars.
Going to events is a great way to network.
This is true whether you’re an active or passive investor.
Meeting other investors can lead to transformational relationships.
We also try to do this in our BE investor club.
We educate members on deals we’re involved with.
I obviously have a bias when saying this.
All operators will have a similar kind of bias.
But a passive investor doesn’t have this bias of wanting to sell you something.
They’re typically investing because they’re trying to make money and want to help others do the same.
So many amazing opportunities can come up when you have that type of relationship.
Podcasts are a great way to grow your network.
We have the Mailbox Money Show, featuring some amazing guests.
We also have an investor deal list, but we’re far from the only ones.
They provide invaluable information about great deals for your portfolio.
We have around 1,200 people currently on our list, and that number grows every week.
I’ve personally had over 1,500 one-on-one phone calls with high-net-worth investors.
Those calls were very educational.
When you get on the phone, you have the opportunity to ask all the right questions.
In my book, Fire Yourself, I have a whole chapter about how to vet a deal.
One piece of advice I give is to get on more people’s deal lists.
When you do that, you can get a better sense of deal flow and the opportunities out there.
3. Target High-Value People
When you network and start your investment education, you should target high-value people.
By high value people, I mean influencers in the investment industry.
They could be a well-known passive investor.
They could be somebody in the mix of a lot of deals.
When you connect with that high-value person, you should ask yourself what they need.
Find a way to bring them value.
I have a friend who’s amazing at this.
They’ve rubbed elbows with very famous people by thinking about what they need and bringing them value.
In his classic book, Influence: The Psychology of Persuasion, Robert Cialdini says we have a very human need:
If someone gives us something, we want to reciprocate.
It’s not always one-for-one, but the situation comes up more often than not.
If we help other people, something can and will open up.
There are two examples of this I want to share:
Someone brought me a deal where I got a 50% return in less than a year.
It was a private deal that I wouldn’t have heard about in any other circumstance.
But because I took the time to bring value to someone, they returned the favor in a big way.
The second example involves someone we worked with.
We called them because we needed more money at escrow so the deal could close.
The person loaned us $2 million and after two days he made back $100,000.
That’s a pretty huge return!
We might never have closed that deal if we didn’t network with high-net-worth people.
In summary: Go to meetups and conferences.
Listen to podcasts.
Get out there and learn.
Meet new people.
When you find the people you want to connect with, figure out how to bring them value.
As you do that, you’ll experience people wanting to reciprocate.
Now I want to hear from you!
Where are your favorite networking hubs?
Let us know in the comments.
Before you leave, make sure to check out our special report about inflation investing. It shares the best choices to invest during an inflationary environment.
If you are interested in investing with us, we are happy to answer any questions that you may have. Join our investment club today and we will be in touch.
Disclaimer: I am not your investment advisor. This is for educational purposes only. I am not giving specific advice on what you can do. I am simply giving my opinions.