Times have changed...
Used to be that most people’s entire social interactions were:
Social media has changed all that. Facebook and Twitter are great for keeping up with old friends and acquaintances. They are not so good at helping you interact with the family down the street. According to Trulia, 1 of every 2 people in America doesn’t know their neighbor’s names.
People are spending much more time communicating with others through the internet than through walking and talking. It’s inevitable. It’s not the end of the world, though.
A startup from San Francisco wants to change that. They know they can’t fight the internet’s growth. Instead they want to use the internet to connect people who live close together.
“Howdy Neighbor”
Nextdoor is a social network geared exclusively to local neighborhoods. So far they have about 119,000 local neighborhoods signed up throughout the country.
How do they keep the network local?
They have a vetting process you must use to gain access. You must prove you live in the neighborhood. After verification, Nextdoor determines if your address falls in a neighborhood that is already on their website, in which case they give you access.
If your neighborhood is not on their website, they will ask you to create a new one.
Once you are a member of your neighborhood in Nextdoor, it’s time to meet the neighbors. From the website, Nextdoor advertises that you can:
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Quickly get the word out about a break-in
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Organize a Neighborhood Watch Group
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Track down a trustworthy babysitter
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Find out who does the best paint job in town
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Ask for help keeping an eye out for a lost dog
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Find a new home for an outgrown bike
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Finally call that nice man down the street by his first name
For investors, Nextdoor might be a little more challenging – especially if you have more than one property in the neighborhood.
At the time of writing this lesson, Nextdoor only lets one email address correspond to one physical address, but there may be changes in the future.
Nextdoor is a free service right now. The company has a ton of venture capital seed money. They are working on building out the network right now, rather than monetizing the network. Once they have a larger base of neighborhoods, you might see ads from sponsored local businesses to pay for the service.
How Will Next Door Help Real Estate Investors?
Property managers may want to consider setting up multiple email addresses to have access for each property. Then you can share the email address (up to you) with your renters, and they can enjoy the benefits of Nextdoor.
Nextdoor is a great way for managers and owners to check on the safety of their properties. Lots of people report that their neighborhoods have become safer once they are all on Nextdoor. Safer neighborhoods also mean higher property values.
The network of people may also be a great way to find properties to flip in your neighborhood. When you drive by an abandoned house, you can hop on the website and learn the story behind it. Maybe you will see other neighbors complaining about this house where the grass isn’t being cut, the windows are boarded up or there are other signs of opportunity?
People may also know potential renters or buyers for your rental property or flip.
Another use for Nextdoor could be to find good contractors. People are always recommending good businesses on the site. Perhaps you don’t need a plumber or HVAC service at the moment, but it’s always good to know one of your neighbors has ‘got a guy.’
Since Nextdoor is not at the stage where businesses can advertise on the site, they are very picky about posting commercial solicitations. That doesn’t mean there are not ways to get your business noticed, though...
Say you have a property management company and want to see if there are other properties that need managing in your neighborhood. Here are several ways Nextdoor recommends you ‘advertise’:
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You may respond to requests for recommendations by offering your services. You must disclose your relationship to the business.
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You may not post unsolicited recommendations for your own business.
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You may add your business information to your profile.
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You may encourage your customers on Nextdoor to recommend your business.
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You may post commercial events such as classes or concerts in the Events Calendar, but you may not post commercial events to the main newsfeed.
Real estate agents will love Nextdoor to provide information to their potential clients. They will just have to have access to the neighborhoods they farm. That means making good connections with people in that neighborhood.
At first, Nextdoor seems like a real stickler for who can join their social networks. That’s how they keep everyone happy with the security measures they maintain. Because they keep their ‘neighborhoods’ secure, people are a lot more willing to open up about what is really going on down the block.
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Do you have any other ideas for how investors could use Nextdoor to increase business?
Get Involved in a Neighborhood – If you let people in a neighborhood know about you and what you do, you will have a better chance for great referrals.
Door Knock – When you find a property, ask the neighbors what’s going on with it. You might find out helpful information.
Think Local – Even if you run your business virtually across the country, find areas that you can become an expert in. If you can’t learn about a neighborhood, you might not want to invest there.
Reciprocate – Find out what other people need and help them find a solution. Do it with no expectation of a return. What goes around comes around.
JP Moses
is a real estate investor in Memphis, TN, with experience ranging from land lording to note buying, rehabbing, and wholesaling. However, wholesaling is the area that he enjoys most and where he bring the most experience and expertise to his students.