We've all seen them:

"Funding for Multi-Family Properties, Call Now!"

"Commercial and Residential Short Sales in Florida - Get 'em done!!!!"

"4 Star Hotel Riviera Maya, call Chris"

With blanket advertising like this, is it any wonder why people have a hard time figuring out just what to do with social media and real estate? The posts above are like sticking a classified ad smack dab in the middle of the local news section of the paper, yet they show up again and again, resulting in little (if any) business generation.

I'm not sure that many real estate professionals know what "social media" and "social networking" are, not to mention why this type of networking and media should be a part of their business plan going into the next few years. In my interaction with real estate professionals, eighty percent look at me with a puzzled expression on their face and ask me "what is social networking?" Sure, they've seen their kids on MySpace or Facebook, have a colleague or two who constantly seems to be talking about LinkedIn, and have read news stories about Ashton Kutcher and his "tweets," but what does it all mean? How would any of this help you to close deals? Is this even about closing deals?

First off, let's define "social media" and some of its counterparts according to Wikipedia:

Social Media
"Social media are media designed to be disseminated through social interaction, created using highly accessible and scalable publishing techniques. Social media supports the human need for social interaction, using Internet- and web-based technologies to transform broadcast media monologues... into social media dialogues... It supports the democratization of knowledge and information, transforming people from content consumers into content producers..."

Social Network
"A social network is a social structure made of individuals or organizations... which are connected by one or more specific types of interdependency, such as friendship... financial exchange...knowledge or prestige.

In its simplest form, a social network is a map... The network can also be used to measure social capital -- the value that an individual gets from the social network."

Now with a basic definition of social media taken care of, how do you go about using it to make transactions happen, lease out that commercial space that's been on the books for far too long, raise your networking profile, or achieve other goals you are trying to reach? We have all seen and heard that social media is the next big thing, whether it's Twitter, Facebook, or some new technology that is right around the corner. No doubt you've all heard stories about 16-year-old tech wizard millionaires, and I'm sure more than a few of us have contemplated how we could get a piece of the action, but if it was really as easy as the success stories make it seem, come talk to me, I've got a bridge to sell you.

Above all else, Social Media harnesses the power to increase the size and value of your network exponentially. If a network of ten people has a strong value, by extension a network of one hundred people should have ten times the value. Yet with an online social network, that network of ten people who each possesses a ten person network actually ends up have a value in the range of one thousand times the value of your original network. With the size and reach of these networks, you can connect with and collaborate with many more people than ever before, more easily, and at little to no monetary expense.

So how do you make social media work for your business? First, it helps to understand what this medium is, what it is not, and to focus the goal you are trying to achieve through it. Do you want to become an industry expert on technology issues? A deal-making attorney for a Fortune 500? How about an expert on high-rise buildings in downtown Los Angeles? Next, figure out just how much time you are willing to put into it; the most respected community members are those who log in and contribute on a regular basis. Social media is about becoming a thought leader, a trusted advisor, a friend, and to put it bluntly, it takes work, even if it's only five minutes per day. This is truly one medium where you get out what you put in.

Once your profile is built and your agenda is figured out, you can start building your network, also known as your "Social Capital." While not all that different than going to your local business mixer, with online social networking you have the opportunity to meet people from different locales, different industries, and even different countries that you would never have met at an in-person networking event. Fortunately, you also meet these people with the click of a mouse, meaning no awkward introductions, fear of being publicly snubbed, or uncomfortable conversations.

As you connect with people, join groups, start discussions, and comment on others' thoughts, your social capital grows. Social Media is about openness, transparency, sharing, and contributing. A positive public perception of your honor, integrity, and knowledge results in an increase of the number of people that want to follow and be associated with you, and not because you have a product they want, but because you are trusted, funny, interesting, and have relevant things to contribute to the community. As you meet more people, your network gains access to their networks, meaning that once again your network value grows, exposing your value and expertise to thousands of new people that you may have never met without online social networking.

So what should this all mean to you? It is simple really: you now have a place and a group of people that may be friends, acquaintances, or just a photo that you interact with, and when you do finally need to market a building or a deal, you can talk about it with people that share similar interests. It is no longer a plea to the general public with no real target, or time wasted delivering your pitch to people with no real interest in your product.

What are you waiting for? Start your foray into social networking now! I invite all of you to join me at Real Invest 2.0 ( www.realinvest20.com) where I am the Editor-in-Chief. Look me up, join my network, and start growing yours!

About the Author
Troy Hicks has a long history in commercial real estate, serving as Vice President of Marketing for a Midwestern chain of title agencies, and then later as CTO and CEO of a regional title agency based in the southwestern United States. Troy's strong desire to close transactions pushed him towards Social Networking and then led to him taking the helm at Real Invest 2.0.

Written by :

Troy Hicks

 

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