Unconventional Truth: The Best Real Estate Deals Come From Relationships, Not Listings
Most new real estate investors begin by obsessively scrolling through MLS listings, convinced that the best deals are publicly marketed. This is backwards. The public listings are what remains after informed buyers have picked through the off-market inventory.
Here’s the unconventional truth: 70-80% of the best real estate deals never hit the MLS. They’re handled through relationships, networks, and direct deals between motivated parties.
Think about it logically. If you have a distressed property requiring work, why would you list it publicly, inviting inspections, appraisals, and contingencies? You’d call an investor you know who buys properties as-is, closes quickly, and pays cash or cash-equivalent terms.
The most successful real estate investors spend 80% of their time building relationships and 20% analyzing deals. They’re not scrolling Zillow; they’re having coffee with wholesalers, connecting with motivated sellers, attending networking events, and maintaining relationships with brokers, contractors, and other investors.
Your deal flow quality directly correlates with your network depth. When people know you’re a serious investor, motivated sellers come to you directly. Wholesalers call you before listing. Realtors contact you about pocket listings. Opportunities materialize through trust and reputation.
Building this network requires patience and genuine relationship investment. Attend REIA meetings. Partner on deals. Help others without immediate expectation of return. Buy coffee for wholesalers and learn their business. Stay in touch over years, not months.
The investment returns compound just like financial returns. Your first deal through relationships might take months to cultivate. Your tenth deal through the same network might take two weeks. By year three, you’re living off a pipeline of quality opportunities most investors never access.
Public listings are a safety net, not a primary strategy. They’re where you invest when your network isn’t producing sufficient deals. Master relationship-building, and the deals find you. Your network becomes your network of deals, and that’s when real estate investing accelerates exponentially.