Only a small portion of real estate is about dirt, bricks, and sticks. It’s mostly about people. This is true whether it’s a ten thousand dollar deal or a ten million dollar deal.
It makes sense that if you want to be good at real estate, you’d better learn about people. Understanding big picture psychology as well as individual motivations is key.
In the past two years I’ve learned some things about people. Some from books, but mostly from experience. Here are my biggest takeaways.
1. You get what you give.
Treat people with respect and kindness and they will generally do the same.
Invest in your network. Help them every chance you get with no expectations. When you need help they will be there for you.
They call this the “law of reciprocity.” I’d encourage you to try it out. Do an experiment!
2. The way to win with people is through fundamentals.
Be nice, smile, listen, don’t lie, return phone calls and emails, throw in a genuine compliment every now and then.
These things are not hard. They can definitely be learned. I believe they are possibly the most important skills you can bring into real estate or any business.
I’m far from perfect at these. But when I think about the “relentless pursuit of excellence” this is what I picture.
3. Teaching and being taught have tremendous power.
There are always people who know more than you. You’d be surprised how many are willing to share that knowledge if you convince them it would be a good investment.
I’ve benefited tremendously from these investments by mentors. Because of that, I try to help new people all the time. It’s not entirely unselfish. When I bring others up, it solidifies my own knowledge.
The mentor and mentee relationships you build can pay off in in the long term. It happens in ways you never saw coming. And ways far more spectacular than you imagined.
4. People handle bad news better than you think they will.
Everyone hates to deliver bad news. You worry about how people will react to news that disappoints them.
I’ve found that forcing yourself to deliver it quickly is always the best move. Obviously being tactful is important, but I try not to let it linger.
99% of the time people react better than I thought they were going to.
5. Trustworthiness and reputation are built over time.
Almost everything in business is built on trust and reputation.
Both of these things take time to build. Both can be destroyed very quickly by poor decision making.
Think about the people you know who are very successful. Chances are good that a lot of people know them, and a lot of people trust them.
6. Don’t Judge.
I’ve seen and smelled homes that defy imagination. Investors call that “the smell of money.”
One of my client’s projects has a long-term squatter living in it who keeps breaking back in to sleep. It’s an active construction site!
On the other hand, some of my tenants are cleaner than I am.
Real estate exposes you to the most personal aspects of people’s lives. It’s been eye-opening.
I’ve learned to never be surprised and also never to judge.
Many of the people who can help you tremendously in your career are not the one’s you’d expect. They drive modest cars and live in modest homes.
7. Collaboration over competition
Sometimes real estate feels like a competition.
It’s not. Fight the urge to feel this way and it will pay off.
In my opinion, there are no winners and losers in real estate deals. Everyone get’s what they need at closing or it doesn’t happen. When everyone’s needs are met, you win.
Your job is to collaborate. To find out what people need, and find a way to give it to them.
I try to approach every opportunity from this perspective, and it has paid off tremendously. Because of this, I’m aiming to close over 70 transactions this year. That’s a lot of happy people!