There are a lot of great real estate investors out there, from financial partners and mentors to developers and builders. Knowing how they think and how best to work together is key to expanding your real estate venture. By speaking their language, you can add value to their work, and they can see the value in what you do – ensuring you build a partnership where everyone wins.

Understanding the mindset of any potential investor is key to building sustainable long-term partnerships. Sounds easier said than done, but with these key tips, you can begin building investor relationships that will ensure the success of all parties and help you grow.

Speak Their Language

No matter what kind of investment relationship you’re pursuing, if you don’t convey what the partnership can bring to the table, you’ll likely miss out on opportunities left and right. Farrah Ali, a Chicago-based real estate investor and author of the bestselling book “Diaries of a Female Real Estate Investor,” said being able to communicate with potential investors about her mindset and theirs was vital to ensuring her success.

“When it comes to expanding your real estate business, your secret weapon really is understanding how investors think,” said Ali. “That goes for builders, flippers, realtors, and really anyone that you might want to partner with you in this process.”

The onus is on you to ensure that you have a clear picture in mind of your needs and the ideal outcome of this investing partnership, added Ali. If you and your investors all come to the table with the same goals in mind, that’s great. But more likely than not, there will be some push and pull involved.

“If you can’t put yourself in their shoes and think about where they’re coming from and what they’re bringing to the table, then you’re putting yourself and your business at a disadvantage,” said Ali.

Identify Target Investors

Trial and error does play a role in identifying the right partners, said Ali. In order to determine which types of investors you want to work with, it might be necessary to hit a few dead ends along the way.

“Maybe you started working with a newer investor and realized you didn’t really enjoy the process of working alongside someone more inexperienced,” said Ali. “Or maybe you feel like someone isn’t holding up their end of the bargain when it comes to flipping a home or finding new properties on the market. While you shouldn’t burn valuable bridges, you should prioritize the investor relationships that make the most sense for you and your business.”  

The old adage “money talks” is popular for a reason – understanding the financial elements of your investing partnership is also crucial to bringing the most value to the table, and ensuring that everyone involved is on the same page...or if it’s time to part ways.

“If you demonstrate that you understand the role finances play in your investment strategies and in your business as a whole, that goes a long way in building positive partnerships and showing that you understand your business and are not to be taken advantage of,” said Ali.

Leverage Connections

Cold-contacting your dream investors is certainly one route to consider, but you may find more success ­– and more value – in leveraging your network of existing industry contacts, said Ali.

“I can’t tell you how many times a mentor or a Realtor or someone else I know in the business has sent me an email or a text saying, ‘So-and-so mentioned they’re looking for a partnership. You should give them a call’,” she said. “If you have people in your network who have an intimate understanding of your business and what you’re trying to build, and they suggest a connection, take advantage.”

If you’re looking to foster these kinds of connections organically, Ali recommends finding the local real estate investor networks in your area. Not only will you be able to find great connections without all the legwork, but you’ll be able to connect with mentors you can reach out to for advice and help.

Additionally, connections often come with a more personal endorsement that can equip you with the confidence you need to move forward with an investing partnership.

“If someone you know and trust, who has good character, recommends you speak with another investor they know, chances are pretty good you’ll be aligned with their character and their goals,” said Ali. “It can be difficult to cold-read investors over the phone or by email, but making that personal connection helps you get a sense of their mindset and their attitudes.”

Bringing in investors to your business is an exciting challenge, but a challenge nonetheless. By entering into each new investor relationship understanding your investors’ mindsets – and knowing how to convey your own – you’ll be able to effortlessly maximize the profits and benefits of each partnership.

Farrah Ali is an author, real estate professional and entrepreneur with more than 18 years of professional experience. She has been featured in Business Insider, Yahoo News and on the Let’s Talk Real Estate Investing podcast. To get a copy of her book and access to her free masterclass to learn how to start investing in real estate, click here farrahali.org/