Description
Social capital is an important aspect of real estate investing
Real estate investing includes different strategies. Your strategy may include wholesaling, flipping properties, bird-dogging, financing, and others. Regardless of your investing strategy, there is a common important factor to all- the social capital.
Importance of social capital
The American Economic Association concluded in an article the importance of social capital in financial development. Social capital refers to the networks of relationships that work together in a particular profession or society. A study in the Northeastern University reveals that as much as 33% of the company’s sales are attributed to social capital. The conclusion shows that sales performance is not only about the quality of your product or service, but it is also a result of maintaining a strong network.
The professional circle
Your professional circle can help you in the processes and output of your business. Experienced investors can share their views with you. A community of professionals can help you learn new things. Furthermore, a network offers you a sense of belongingness. In Maslow’s hierarchy of needs, belongingness is a factor that motivates a person, and it is important other than his physiological necessities.
Maintain a support system
A support system is important to keep you going. An encouraging team can help you focus on your objectives. A supportive environment can motivate you towards business and professional growth.
Keep on learning
Curiosity allows people to ask questions and to discover the answers. A publication in Harvard Business Review reveals that curiosity develops collaborative relationships among professional colleagues.
The interest to learn bonds people together. A book club or discussing chapters with a group is a way to explore new insights and ideas. Attending training and seminars is also an opportunity to meet new people. You can expand your network and meet new investors by being motivated to learn.
Business is not only about financial aspects. A network of people is an asset that you need to have. Achieving your goals can be easier as you build a stronger and wider network.
Learn with us at Real Estate IQ!
Credits:
Luke Watkins is a real estate investor with mastery of fix-and-flip and wholesale deals. His experiences include working with some of the biggest residential flipping companies in the country with a monthly average of closing 20 to 30 deals. He also has a background in construction and property management; and has invested in Salt Lake City, Utah, Indianapolis, Indiana, Albuquerque, New Mexico, and now Dallas, Texas
Sources:
https://www.jstor.org/stable/3592941?https://hbr.org/2018/09/curiosityhttps://www.forbes.com/sites/chriscancialosi/2014/09/22/4-reasons-social-capital-trumps-all/#493460066986
